Seeking Alpha

The $11B merger between American Airlines (AAMRQ.PK) and US Airways (LCC) is on, forming the...

The $11B merger between American Airlines (AAMRQ.PK) and US Airways (LCC) is on, forming the world's largest airline, according to media reports.
Comments (13)
  • Sell, sell, sell
    13 Feb 2013, 08:49 PM Reply Like
  • Sell what? Who would own this stock?
    13 Feb 2013, 09:49 PM Reply Like
  • What do you get when you combine one crappy airline with another crappy airline? Answer - a bigger crappy airline.


    US Air is probably the worst airline I've ever flown so basically I think whatever organization comes out of this merger is still living on barrowed time. Why anyone would actually want to be in this business is a mystery to me.
    13 Feb 2013, 10:08 PM Reply Like
  • Airline model is decades old and in need of an overhaul, wish I could be positive but these two airlines I have had lots of bad experiences on and won't be flying again.


    Only a few carriers can actually make money consistently and the passengers only use the service because there is no other alternative.


    Seriously I'd take a blimp if it were available, we need the high speed rail or something as this model is busted.
    13 Feb 2013, 11:51 PM Reply Like
  • "we need the high speed rail"


    Agree!!!!!!!!!!! But talk to Congress for the funding. Doubt it will happen.
    14 Feb 2013, 12:18 AM Reply Like
  • Or . . . . move to California.
    14 Feb 2013, 01:10 AM Reply Like
  • I don't really care to fly on either of them, but I'm up 4X on the stock so far and see high probability of more tomorrow and Thursday when the deal is finalized. Remember, lead attorney said "good chance" that AMR shareholders will retain "some ownership" - way different than the last two airline BK's.
    Even if long term investment isn't attractive, Elliot wave and fibonnaci analysis shows a price target of $4-6 in the near term. Not bad...
    14 Feb 2013, 02:08 AM Reply Like
  • I am an investor that always looks for great opportunities to invest. I enjoy the research, decision-making, anticipation along with the results after executing a trade. Regarding the recent merger between American and US Airways, it appears to be a win-win situation for both airlines. The debt owed by American (apprx. $5 Billion) will be satisfied in stock, but based on the estimated valuation of $11 Billion, American will receive $7.9 Billion, give their creditors $5 Billion in stock; therefore leaving a surplus of approximately $3 Billion. I'm wondering if those investors who decided to stick it out with AMR will be reissued shares or will they lose 100% of their investment. I believe they would be reissued stock, especially with AMR issuing a MOU indicating there will probably be shareholder equity depending upon the strategic alternative chosen. What are your thoughts?
    14 Feb 2013, 03:52 AM Reply Like
  • Michael, Jamiecal, Wisepokerguy ......and Dereck . If you did not make money during this merger run up you should find another game to play. Sell ... who would own this stock?...really? Crappie airline... have you looked at Usairways and Doug Parkers history? I see the hub and spoke model as alive and well. High speed trains are great but try taking one to Beijing. Even the little Chinese girl is perplexed at your comments.
    14 Feb 2013, 07:20 AM Reply Like
  • I was making a comment on the service and profitability of airlines. 40 years ago, flying somewhere used to be fun. Now it's like getting loaded on to the cattle car for the trip to the death camp. US Air is one of the worst and American isn't far behind. Seriously, I wouldn't touch these stocks with a 10' pole. There are just much easier places to make money in the market.
    14 Feb 2013, 09:56 AM Reply Like
  • Steve I agree with WisPokerGuy, he nailed the comment dead on. We are talking from the consumer's perspective not an investor's perspective.


    Speaking of China, you must have flown Cathay Pacific, Singapore, or even EVA. The experience on these airlines is what it used to be like or better than in the US 25 years ago. They make the US carriers look like amateurs in comparison.


    As an investor I tend to stick with what I know and like and airlines sure isn't it.


    I want an companies with future growth, lots of value, and a solid product, and this isn't the place to be. Southwest is the only good one out of the bunch but they are the exception.
    14 Feb 2013, 12:49 PM Reply Like
  • How about Alaskan Airlines? And yes, the service on JAL was so much better than American Airlines.
    14 Feb 2013, 12:57 PM Reply Like
  • WisePockerGuy, Dereck and Michael you all are 100% correct. I have flown on Cathay Pacific, JAL and Alaskan our major carriers are not in the same league. I sometimes feel the decline in service was not only for survival but a reflection of our overall decline as a country and culture...but this is another subject. I also agree that holding onto to airline stock is not investing. Its more like Russian roulette. I currently own no airline stocks but the ride on usairways over the last year has been one of my best. Lets hope this supposably last merger will bring back the service of the past.
    15 Feb 2013, 04:34 AM Reply Like
DJIA (DIA) S&P 500 (SPY)