239 replies to this topic

[USA320Pilot]

US Airways Confirms It Has Hired M&A Advisors For Possible AMR Takeover

Click here to read the story.

[autofixer]

USA320Pilot, on 25 January 2012 - 11:48 AM, said:

US Airways Confirms It Has Hired M&A Advisors For Possible AMR Takeover

Click here to read the story.

This is going to suck!!! I wonder, from a pilot perspective, if both managements are looking out at the horizon and seeing no pilots available in the future. Now, with this merger, they can reduce capacity (flights) and their need for operators? Just wondering? Nah! They never look that far out into the future.

[usfliboi]

USA320Pilot, on 25 January 2012 - 11:48 AM, said:

US Airways Confirms It Has Hired M&A Advisors For Possible AMR Takeover

Click here to read the story.

Is it me or is it odd that Doug would ever ever admit this unless...unless talks are further along than we think? It is EXTREMELY rare that a CEO would acknowlege a possible takeover over another company. I dont get it! There must me a high level of confidence here?

[USA320Pilot]

US Airways Affirms Interest in Possible Bid for AMR

By JACK NICAS

CHICAGO (WSJ.com) - US Airways Group Inc. acknowledged Wednesday that it has hired advisers to help it explore a possible merger with American Airlines' parent AMR Corp., which filed for bankruptcy protection on Nov. 29.

"We are, of course, always interested in studying potential value-enhancing opportunities, and part of studying these opportunities is ensuring we have good counsel," US Airways Chief Executive Doug Parker told investors on a conference call to discuss the airline's fourth-quarter earnings. "Therefore, as has been reported, we have indeed retained (investment bankers) Barclays Capital and Millstein & Co., and (law firm) Latham & Watkins LLP to help us explore our options as they relate to AMR's bankruptcy."

The Wall Street Journal reported this month that US Airways, Delta Air Lines Inc. and private-equity firm TPG Capital all are studying potential bids for AMR.

Mr. Parker and US Airways President Scott Kirby have long been vocal proponents of industry consolidation, and have made failed bids for past mergers with competitors. Mr. Parker acknowledged that his past interest in finding a suitor has fueled speculation, but cautioned that "as today's results show, US Airways does not need to participate in consolidation."

Fuller planes and higher fares helped US Airways post an $18 million profit on record revenue in the fourth quarter despite Wall Street expectations that the airline would lose money. Still, a nearly 30% jump in fuel expenses left profit 36% lower than the fourth quarter of 2010. US Airways is the fifth-largest U.S. airline by traffic and AMR is No. 3.

Mr. Parker said that after another profitable year for the Tempe, Ariz., airline—it earned $71 million in 2011—"we can now decide whether it's best for US Airways to operate as a standalone company or participate in consolidation over time, and that's what we intend to do." In 2010 the company earned $502 million.

He predicted AMR's bankruptcy will drag out for months, and "therefore we anticipate we and our advisers will be studying this situation for some time." While US Airways studies the situation, "we do not expect there will be any major developments and we have nothing to report today," he said.

For the fourth quarter, the company reported a profit of 11 cents a share, down from 17 cents a share, a year earlier. Stripping out items such as charge related to auction rate securities arbitration, the company reported per-share earnings of 13 cents, well ahead of the per-share profit of two cents predicted by analysts polled by Thomson Reuters.

Operating revenue improved 8.5% to $3.16 billion. Analysts expected $3.14 billion in revenue.

The carrier's total revenue per available seat mile jumped 9.9% from a year earlier. Load factor, or the percentage of available seats filled, rose to 81.9% from 80.6%.

[usfliboi]

American Airlines May Have Just Found Its Knight In Shining Armor



US Airways is reportedly drawing up plans to merge with AMR, the bankrupt holding company of American Airlines, Bloomberg reports.

The move would fill a revenue gap for US Airways, while also helping fuel American's weakened hub system, which has been drained as it cut money-losing flights over the past several months.

The Tempe, Arizona-based airline has already hired Barclays Capital and Millstein & Co. to advise it before bidding on American. However, it could be more than a year away from officially announcing an agreement, as it waits for AMR to navigate bankruptcy proceedings.

The rumor follows speculation that Delta, which took over Northwest Airlines over the last decade, could also enter the fray.

Under current Chief Executive Officer Doug Parker, US Airways has made a series of failed merger attempts, including one with Delta when that airline was in bankruptcy protection.

President Scott Kirby is reportedly leading the planning committee at US Airways. A company spokesperson declined to comment.

Shares in AMR are up more than 5% on the news, to $0.45.



Read more: http://www.businessi...1#ixzz1kUyAIBEq

[wings396]

You guys had better run this all past WT, the lurker from Delta to make sure he and DL approve. I'm sure he will be along anytime now to chime in.....10, 9,8,7............

[usa1]

The LGA-DCA slot swap with Delta was the first step in this process. A merged AA/US will now have an equal present with DL in LGA. About 25% of the market each.

[Phoenix]

usfliboi, on 25 January 2012 - 12:58 PM, said:

Is it me or is it odd that Doug would ever ever admit this unless...unless talks are further along than we think? It is EXTREMELY rare that a CEO would acknowlege a possible takeover over another company. I dont get it! There must me a high level of confidence here?

Personally I think it is an issue of class vs. confidence. Wolf had enough class to wear a coat and tie, knew how to handle his liquor, and kept quiet about the United merger.