December 9, 2013
Dear Valued Supplier,
Today is our first day as the new American Airlines! As the leader of the new Procurement and Supply Chain Organization, I am excited to be reaching out to you to share this important day. We are making great progress on our integration planning with a goal of restoring American Airlines to its position as the greatest airline in the world. We believe the future will present many exciting new opportunities for our suppliers as we achieve our goal.
The new American Airlines will:
Although we have come together as one company, the new American is on a journey to integrate the two airlines. Our suppliers will have a pivotal role on this journey. We will work together to find synergies in combining our products and services. In addition, our suppliers will help us provide a seamless integration experience for our customers by continuing to provide high-quality, consistent goods and services to both American Airlines and US Airways as we integrate.
Please take a moment to read the attached Q&A that will answer questions you may have regarding the closing of the merger as well as American’s emergence from bankruptcy. Additional information is also available at www.newamericanarriving.com.
All of us on the new American team appreciate your support, and we look forward to continuing our relationship well into the future.
Sincerely,
John MacLean
Vice President, Procurement and Supply Chain
Supplier Q&A
Not yet. We’re one company, but still very much running two separate airlines, until we become a unified airline with a Single Operating Certificate (SOC). Legally closing our merger is only the start of a long journey toward integrating workgroups’ seniority lists, IT infrastructures, operational and policy plans and more. We’ve laid a lot of the groundwork and now it’s time to start building our future airline together.
American and US Airways are working together to outline the best operational plan to minimize customer impact while maximizing the planned benefits of a combination. The complex integration process is expected to take as long as 18 to 24 months, when the two airlines expect to be issued a Single Operating Certificate.
We expect to maintain all hubs now served by both airlines and offer increased service to existing markets, providing more choices for our customers and more opportunities for our employees. As the new carrier, we will have nearly 6,700 daily flights to more than 330 destinations in more than 50 countries across the globe.
US Airways will exit Star Alliance on March 30, 2014, and customer benefits through the alliance will end at that time. Until its exit from Star Alliance, US Airways customers will continue to enjoy all Star Alliance benefits, including:
Yes. Together, American Airlines and US Airways plan to create a premier global carrier with an expanded network to even better match where you want to fly and with greater ability to invest in our fleet, modern technologies and the products and services you value most.
We’ll continue investing in the products and services our customers value, including offering Boeing 777-300ER service on markets with high First Class demand, welcoming our new Airbus A321 Transcontinental aircraft into the fleet as the only carrier to offer three-class service on transcontinental routes and increasing connectivity across our fleets with Wi-Fi installations. We encourage customers to stay tuned as we work to roll-out other customer-focused benefits as the new American.
Yes, the combined airline will benefit from American's landmark agreements with Airbus and Boeing, designed to transform the new American Airlines fleet. We plan to continue the fleet renewal momentum of the past year by taking delivery of a combined total of more than 80 new aircraft between American Airlines and US Airways in 2014.
With continued new aircraft deliveries over the next several years, the combined airline will have one of the most modern and efficient fleets in the industry and a solid foundation for continued investment in technology, products and services. We will continue to analyze our fleet for maximum optimization and will work to retire the appropriate aircraft as we take delivery of new aircraft.
You should follow normal procedures for now. You should work with your appropriate contact at American Airlines for any questions regarding contracts with American and at US Airways for questions regarding contracts with US Airways until such time as a joint agreement has been reached.
We’ll evaluate the needs of the combined company during the integration process and work to ensure that we have market competitive contracts. The merger transaction includes assumptions around cost and revenue synergies.
It will continue to be business as usual and all contracts will remain in force as written while we prepare for integration. We expect there will be some level of renegotiation as the new American seeks to meet the cost synergy targets. At the appropriate time, both airlines will examine contracts and make the best determination for the new American and for maintaining relationships with its key suppliers.
All officers of the new American have been announced. Please see the information on www.aa.com under “About Us.” John MacLean will be Vice President of Procurement and Supply Chain at the new American.
Questions related to AMR’s emergence from bankruptcy
The claims reconciling process is complicated and lengthy. Please refer to American’s Plan of Reorganization at www.amrcaseinfo.com for further information, or contact our claims agent, Garden City Group, at:
Toll-Free: (888) 285-9438
International Toll: (440) 389-7498
amrcaseinfo@gcginc.com
Cure payments will be issued by our claims agent, Garden City Group, and will be issued shortly after emergence. Please contact Garden City Group at the contact information listed above for further information.
The claims reconciling process is complicated and lengthy. Please refer to American’s Plan of Reorganization, or contact Garden City Group for answers to all claims-related questions.