Chances of WO Merger

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05-11-2021, 03:01 PM

moonraker9

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Chances of WO Merger

Been hearing rumors about this here and there so what better place to ask what people think than on the APC forums?

What are the chances of AA needing this to happen and what are the advantages/disadvantages?

05-11-2021, 04:14 PM

Excargodog

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Quote:

Originally Posted by moonraker9

What are the chances of AA needing this to happen and what are the advantages/disadvantages?

I’m not sure AA “needs” wholly owned s at all. Clearly there are lots of non wholly owned regionals that AA can and does farm the work out to. But they do bring in money to the AAG certainly ( over a fifth the total profit last time I checked preCOVID, and there might be some economies of scale in combining them and ending duplicative functions. Conversely, having three wholly owned plus Mesa, Skywest, Republic, and everyone else to play off against the others to keep wages as low as possible is ALSO an advantage for AA. I mean, that’s sort of why there ARE regionals.

05-11-2021, 04:22 PM

captive apple

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I think if you could time machine back to the AIRWAYS AA merger I’d guess most wouldn’t bet the three would make it to 2021 as separate entities.

05-11-2021, 04:29 PM

BurnerAccount69

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Heard it from the van driver in Fayettenam...its a done deal, just ironing out the particulars.

05-11-2021, 04:31 PM

moonraker9

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Thanks for the replies! I heard from people in training they are not being assigned bases and they think it's because there is some sort of announcement coming.

I don't think a merger would happen over night so that probably doesn't have to do with it but it is interesting as to why.

05-11-2021, 06:09 PM

FlannelDaddy

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Quote:

Originally Posted by moonraker9

Don't take word about mergers and acquisitions from people who haven't even made it to Sims yet. Training house is a rumor mill. With that said its not entirely impossible, but AA has little to gain from it. I seriously doubt that an eagle merge happens. If anything it'd give us more bargaining power and they don't want that.

05-11-2021, 06:21 PM

Approach1260

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Quote:

Originally Posted by moonraker9

They're probably just waiting to publish it with the full annual company wide base bid that only closed this afternoon. Give it a couple days.

05-12-2021, 01:46 PM

272922

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Quote:

Originally Posted by Approach1260

They're probably just waiting to publish it with the full annual company wide base bid that only closed this afternoon. Give it a couple days.

That announcement won't occur until after the obligatory 3 rescind & revises come out.

05-17-2021, 06:21 AM

amcnd

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Quote:

Originally Posted by 272922

That announcement won't occur until after the obligatory 3 rescind & revises come out.

Or after a 16 year no strike contract signed..

05-17-2021, 08:31 AM

#10

bababouey

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Don’t make this too complicated. Our profit margins are some of the lowest in the industry. Leadership was focused on expansion the last few years, now they will focus on costs until a normal market returns. We saw the redundant training center closure last week, only time will tell if redundant regionals will merge. Regional flying is vital to our model so it won’t go away, but it’s a fair question to ask when we have 3 and the rest of the industry has no more than 1 per company.