Amr Still Interested In U Assets?

[BoeingBoy]

The article is about AMR wanting more Asian service, but this nugget was in it:

"Asked whether American would buy assets from financially troubled rivals such as US Airways, Arpey said, "There could be some things to come available that we would definitely be interested in ... We will be aggressive, but we'll be sensible."

Article

Jim

 

[jimntx]

Can you say landing slots at LGA and DCA? I knew you could.

 

[BoeingBoy]

jimntx,

The same thought occured to me. Only other possibilities I can think of is LGA/DCA terminal space (don't know how AMR is on gates at either) and 757/767's (which are getting pretty old and it's been reported that AMR is a candidate for the 7E7).

Jim

 

[jimntx]

I think we have plenty of space at DCA--well, as much as anyone. IIRC U's terminal space at LGA actually belongs to CO and is leased from them. I think someone from U posted some time ago that a provision of the lease is that U can not sub-lease the gates to anyone else. If U doesn't want them, I think they revert to CO.

 

[thepoohbear]

I think we own the space in LGA , especially when we gave CO 60 million for it.

 

[wings396]

I think we own the space in LGA , especially when we gave CO 60 million for it.

That plus we handed EWR over to them as part of the deal....
Tons of flights back in the early 90's to many cities, now 7 or so a day to CLT &PIT..

 

[jimntx]

I think we own the space in LGA , especially when we gave CO 60 million for it.

Does the Shuttle use leased space, then? There was some discussion awhile back by US Airways employees that there were some physical assets at LGA--I was remembering gates, but maybe not--that were not saleable because they actually belonged to CO and were just leased by U.

 

[sfb]

I think we own the space in LGA , especially when we gave CO 60 million for it.

I'm not sure that's entirely true, given the following from CAL's 2003 10-K filing:

We remain contingently liable for US Airways' obligations under a lease agreement between US Airways and the Port Authority of New York and New Jersey related to the East End Terminal at LaGuardia airport. These obligations include the payment of ground rentals to the Port Authority and the payment of principal and interest on special facilities revenue bonds issued by the Port Authority with an outstanding balance of $174 million at December 31, 2003 and having a final scheduled maturity in 2015. If US Airways defaults on these obligations, we would be required to cure the default, and we would have the right to occupy the terminal after US Airways' interest in the lease had been terminated.

It's clear (from the language) that US Airways leases the terminal from the PANYNJ, but it's not clear to me what would happen if UAIR wanted to try to sublet the terminal or transfer the lease to another airline. Continental may or may not have a right of first refusal on that terminal.

 

[jimntx]

Thanks, sfb. I didn't think I was imagining that, but one can't be too sure.

 

[Atlantic]

US has the lease to the terminal. We can, if we want, sub out gates if we wish.
If US goes down, CO has first rights to the terminal.