AMR

[FWAAA]

Anyone find it strange that Arpy retired at the same time?

No, as Arpey has been diametrically opposed to bankruptcy since he was promoted to the CEO position over eight years ago. When the board of directors voted to file a Ch 11 petition, he knew it was time to go.

His retirement has nothing to do with the wet dreams of some US employees and their fantasy merger. AA promoted a very capable person to the top job - Tom Horton.

 

[MUTATIS MUTANDIS]

This guys says US Airways will be the next to go Chapter 11 http://video.cnbc.com/gallery/?video=3000059703

Madluts

Wow CNBC, nailed it with both guys, how true they are!

 

[Move2CLT]

Wow CNBC, nailed it with both guys, how true they are!

Julius? I don't think he was even aware he was on TV.

A bit past his prime. Now to people more relevant.

Jamie Baker, J.P. Morgan: J.P. Morgan’s analysts begin their note with three words: ”We were wrong.” Previously, J.P. Morgan had deemed a voluntary bankruptcy filing as highly unlikely. “‘The company has approximately $4.1 billion in unrestricted cash and short-term investments… [and] is anticipated to be more than sufficient to assure that its vendors, suppliers and other business partners will be paid timely and in full….’ So, this WASN’T about liquidity (liquidity is about 18% of LTM revenue).” On the filing’s implication for the industry, J.P. Morgan adds: “LCC filed. DAL filed. UAL filed. Today, those airlines are producing returns nobody ever dreamed possible, against a backdrop of 9% unemployment and ~$100 oil. There’s no evidence that those three are ‘going after one another.’ A more viable AMR doesn’t pose a threat, it contributes to an even more viable industry, in our view.

Michael Linenberg, Deutsche Bank: “The read through for the rest of the industry is that today’s bankruptcy filing is specific to AMR and a reflection of the company’s struggles to achieve a more competitive cost and debt structure. In that regard, the US airline industry is on track to generate a net profit in the seasonally-weak December quarter, something that we have observed only twice during the past decade. Furthermore, we expect that AMR’s restructuring will include further rationalization of its network which likely means some capacity cuts.”

Daniel McKenzie, Rodman & Renshaw: “The implications for the industry are positive; airlines in Ch. 11generally shrink, and AMR likely comes out of Ch. 11 a merged airline with US Airways (friendly or hostile). A restructured industry is clawing back pricing power, however, with 34% of AMR’s (and the industry’s costs) continuing to get whipsawed 30-50% from excessive volatility in commodity markets, the industry needs to cut yet more capacity and park more planes, and we would expect that to be part of AMR’s restructuring plan. It’s premature, but we would argue UAL, DAL, LCC, JBLU, and LUV should all be the largest direct and indirect beneficiaries from the reduced capacity.”

Will Randow, Citi: “We would not be surprised to see pursuit of an AMR-LCC merger, as LCC has pursued consolidation with other legacy airlines and AMR’s CEO Gerard Arpey, prior to today’s transition to new CEO Tom Horton, preferred a go-it-alone strategy.”

 

[MUTATIS MUTANDIS]

More relevant,? http://methodiquill.blogspot.com/2006/07/julius-maldutis-ph-d.html http://www.cnbc.com/id/24790443 Let history, relevant that is be your guide!

 

[usa1]

AMR Bankruptcy Could Pave Way For US Air Deal, Citi Says

Citi analyst Will Randow writes in a note that he “would not be surprised” to see AMR pursue a tie-up with US Airways. Both companies were left out of the musical chairs consolidation game the last time around, when the United-Continental and Delta-Northwest mergers were consummated.

http://www.forbes.com/sites/steveschaefer/2011/11/29/amr-bankruptcy-could-pave-way-for-us-air-deal-citi-says/?partner=yahootix

Will Randow, Citi: “We would not be surprised to see pursuit of an AMR-LCC merger, as LCC has pursued consolidation with other legacy airlines and AMR’s CEO Gerard Arpey, prior to today’s transition to new CEO Tom Horton, preferred a go-it-alone strategy.”

 

[etops1]

This guys says US Airways will be the next to go Chapter 11 http://video.cnbc.com/gallery/?video=3000059703

Madluts

Who the hell was that old fart .He had no idea what the hell he was talking about .

 

[N965VJ]

CNBC as recently as 3 months ago callss him the smartest CEO in the airline industry....I disagree.

I find Hee-Haw reruns more informative than CNBC.

 

[crazystnic]

The guy that called US a regional carrier?

Yeah he seemed as Bright as Mr. Nicalau...

both of them lost.. in the past.

 

[SparrowHawk]

Time to check the margarita and tequila stock in tempe.......they might need to stock up.

And Hire a designated driver as well. Tough to do a mergerr with the CEO behind bars.

Q: How many US Airways Senior Executives does it take to change a light bulb??

A: Only 5. One to hold the light bulb and four to drink until the room spins



Let the gAAmes begin!

 

[Phoenix]

In the video link above, did anyone notice they have PHX, CLT and PHL as AA hubs???? Hmmmmmmm......

Yeah, why did they leave out DCA?

 

[luvn737s]

Any merged seniority list will be McCaskill-Bond, and I'm prepared for that.

USAPA better go in there and fight for DOH or be prepared for another DFR suit! DOH it's in the Constitution. APA should know that!!

 

[Move2CLT]

Yeah he seemed as Bright as Mr. Nicalau...

both of them lost.. in the past.

Who is Nicalau?

 

[USA320Pilot]

Selected Analyst Comments on AMR Bankruptcy & US Airways: November 29, 2011

Jamie Baker, J.P. Morgan: J.P. Morgan’s analysts begin their note with three words: ”We were wrong.” Previously, J.P. Morgan had deemed a voluntary bankruptcy filing as highly unlikely. “‘The company has approximately $4.1 billion in unrestricted cash and short-term investments… [and] is anticipated to be more than sufficient to assure that its vendors, suppliers and other business partners will be paid timely and in full….’ So, this WASN’T about liquidity (liquidity is about 18% of LTM revenue).” On the filing’s implication for the industry, J.P. Morgan adds: “LCC filed. DAL filed. UAL filed. Today, those airlines are producing returns nobody ever dreamed possible, against a backdrop of 9% unemployment and ~$100 oil. There’s no evidence that those three are ‘going after one another.’ A more viable AMR doesn’t pose a threat, it contributes to an even more viable industry, in our view.

Michael Linenberg, Deutsche Bank: “The read through for the rest of the industry is that today’s bankruptcy filing is specific to AMR and a reflection of the company’s struggles to achieve a more competitive cost and debt structure. In that regard, the US airline industry is on track to generate a net profit in the seasonally-weak December quarter, something that we have observed only twice during the past decade. Furthermore, we expect that AMR’s restructuring will include further rationalization of its network which likely means some capacity cuts.”

Daniel McKenzie, Rodman & Renshaw: “The implications for the industry are positive; airlines in Ch. 11generally shrink, and AMR likely comes out of Ch. 11 a merged airline with US Airways (friendly or hostile). A restructured industry is clawing back pricing power, however, with 34% of AMR’s (and the industry’s costs) continuing to get whipsawed 30-50% from excessive volatility in commodity markets, the industry needs to cut yet more capacity and park more planes, and we would expect that to be part of AMR’s restructuring plan. It’s premature, but we would argue UAL, DAL, LCC, JBLU, and LUV should all be the largest direct and indirect beneficiaries from the reduced capacity.”

Will Randow, Citi: “We would not be surprised to see pursuit of an AMR-LCC merger, as LCC has pursued consolidation with other legacy airlines and AMR’s CEO Gerard Arpey, prior to today’s transition to new CEO Tom Horton, preferred a go-it-alone strategy.”

Robert Herbst, AirlineFinancials.com: AMR said the bankruptcy has no direct legal impact on non-U.S. operations. It also said it was not considering debtor-in-possession financing. But it could susceptible to unsolicited takeover bids from rival carriers. AMR has long said it could thrive on its own. Robert Herbst, an analyst with AirlineFinancials.com and a former American pilot, said there was a "95 percent" chance American would join up with another carrier within two years. "US Airways is probably toward the top of the list but it wouldn't be the only (potential merger partner)," he said. A US Airways representative did not immediately return a phone call seeking comment.

Bill Warlick, Fitch Ratings: American will focus on shuttering pension plans and getting wage concessions from workers. American might be pushed into a merger with US Airways because size and global networks are more important than ever in the airline business.

 

[SparrowHawk]

Selected Analyst Comments on AMR Bankruptcy & US Airways: November 29, 2011

Jamie Baker, J.P. Morgan: J.P. Morgan’s analysts begin their note with three words: ”We were wrong.”

Michael Linenberg, Deutsche Bank: “The read through for the rest of the industry is that today’s bankruptcy filing is specific to AMR and a reflection of the company’s struggles to achieve a more competitive cost and debt structure.

Daniel McKenzie, Rodman & Renshaw: but we would argue UAL, DAL, LCC, JBLU, and LUV should all be the largest direct and indirect beneficiaries from the reduced capacity.”

Will Randow, Citi: “We would not be surprised to see pursuit of an AMR-LCC merger, as LCC has pursued consolidation with other legacy airlines and AMR’s CEO Gerard Arpey, prior to today’s transition to new CEO Tom Horton, preferred a go-it-alone strategy.”

Robert Herbst, AirlineFinancials.com:
"US Airways is probably toward the top of the list but it wouldn't be the only (potential merger partner)," he said. A US Airways representative did not immediately return a phone call seeking comment.

Bill Warlick, Fitch Ratings: American will focus on shuttering pension plans and getting wage concessions from workers. American might be pushed into a merger with US Airways because size and global networks are more important than ever in the airline business.

Allow me to summarize. "US Airways may or may not merge with AA, our crystal ball is on the fritz, the tea leaves dried out, I forgot my Ouija Board and my kids stole the darts for the dart board" Or put yet another way, "Blah, Blah Blah Bullshite"

 

[lynyrdskynyrd]

Daddy, analysts and pilots in a crew room look a lot alike.