Boeing Doesn't See AA-US Merger

[eolesen]

If Boeing is all for the AMR standalone plan, makes you wonder what some of the bondholders are thinking.

Boeing Says It Backs AMR Plan to Reorganize
By Ted Reed 04/25/12 - 12:04 PM EDT1

CHICAGO (TheStreet) -- AMR (AAMRQ.PK) creditor Boeing (BA_) said it backs AMR's plan of reorganization, rather than an effort by US Airways (LCC_) to merge with the carrier.

Answering a reporter's question during Boeing's earnings call, CEO Jim McNerney said, "American is working through the process now and we support them emerging from this thing as a stronger airline."

"We've seen mergers before," McNerney added. "It's not clear that this one's going to happen, by the way, in our view."

After American emerges from bankruptcy, "If at that point a merger makes sense to the two managements of the companies, we'll support that as well," McNerney noted.

Boeing is one of nine members of the creditor's committee in the AMR bankruptcy case. US Airways has reached tentative contract agreements with the three largest American unions, all of whom are also committee members, in an effort to gain support for a takeover of the larger carrier.

But AMR, which currently is seeking abrogation of the union contracts, has a period of exclusivity, which extends at least into September, to submit a plan of reorganization. CEO Tom Horton has said the company may be receptive to a merger after it emerges from bankruptcy.

US Airways operates the largest Airbus fleet in the world. American operates an all-Boeing fleet, but has placed orders for hundreds of aircraft from both manufacturers.

 

[FWAAA]

Boeing, of course, isn't angry at AA management and probably won't let any "emotions" get in the way of a decision based on the plan it sees as returning more $$$.

Employees, on the other hand . . .

Shrewd move by Parker. Unanimous support by AA's three unions was never in doubt. As I posted the other day, Lorenzo could have teamed up with Icahn and Carty and that trio would have been more warmly embraced than Horton & Co.

 

[IORFA]

If US went more Boeing, they might change their mind. It's all about the money! I could see the dropping of the A-350, firming and ordering a few more 787's and 777-300ER's and Boeing comes on board. No " emotions" involved.

 

[FWAAA]

There's no compelling reason for the non-employee creditors to embrace Parker right now. It's in the creditors' best interest to see AA cut its costs so that it can be competitive with UA and DL. That probably means allowing the Ch 11 process to continue on AA's schedule. Once those costs have been reduced, I have no doubt that all creditors (who will by then become the new shareholders) would be open to combinations with other airlines. Promises to not cut costs as far as AA has proposed probably don't resonate well with the non-employee creditors.

I don't see the A350 orders ever being delivered to a standalone US or a merged US-AA. If US is still a single gal at that time, it won't need the very long range and large capacity, as PHX will probably never have an extensive transpacific operation. Same for PHL and CLT. There just isn't the O&D to make that work. And if AA and US combine, no need for a small subfleet of Airbus A350s for an airline with such a huge Boeing fleet of 777s and 787s (on order).

Parker said that if he takes control, the AA Boeing and Airbus orders from last summer would be continued - I expected that. The fuel (and maintenance) savings are substantial and the prices AA negotiated are enviable.

 

[TWU informer]

Yeah, it would be far better to sit back and watch AA except more concessions for jobs from the unions and continue the bean counter mentality to utter destruction of everyone's future.

AA's management has been so great at using this idea in the past, why not try it once again.

Non Employees creditors have no idea what happens on the inside of AA. Maybe they dont care.

But from the inside looking out, continuation of the same ideas expecting diffferent results just doesn't really get me excited or even one bit thinking positive about the outcome in the long run.

Go ahead and bang your drums though, each of you know so much about all of this I don't why you are not running the place instead of typing your cheerleading from the sideline forums.

Sitting on the outside looking in, even makes you superior to those of us on this inside that are just emotional toys.

We know nothing, you know everything.
No problem

AA's Public Relations machine is lining up those that have $$$ in their favor to support their plan.
To hell with what the employees think, if not for them it would be a fantastic and profitable airline. Stomp them damn employees into the ground, we can do this and succeed without them.

 

[texflyer]

Yeah, it would be far better to sit back and watch AA except more concessions for jobs from the unions and continue the bean counter mentality to utter destruction of everyone's future.

AA's management has been so great at using this idea in the past, why not try it once again.

Non Employees creditors have no idea what happens on the inside of AA. Maybe they dont care.

But from the inside looking out, continuation of the same ideas expecting diffferent results just doesn't really get me excited or even one bit thinking positive about the outcome in the long run.

Go ahead and bang your drums though, each of you know so much about all of this I don't why you are not running the place instead of typing your cheerleading from the sideline forums.

Sitting on the outside looking in, even makes you superior to those of us on this inside that are just emotional toys.

We know nothing, you know everything.
No problem

AA's Public Relations machine is lining up those that have $$$ in their favor to support their plan.
To hell with what the employees think, if not for them it would be a fantastic and profitable airline. Stomp them damn employees into the ground, we can do this and succeed without them.

Or buy the dang airline and hire your own management dream team. AA was an incredible bargain just before BK............I guess the union leaders see it differently.

 

[texflyer]

Color me shocked!!!!..........Boeing doesn't want Airbus's biggest customer buying one of their most loyal customers.............hmmm.

 

[Mr Red]

Or buy the dang airline and hire your own management dream team. AA was an incredible bargain just before BK............I guess the union leaders see it differently.

Talk to the United people and see how well employee ownership went for them !

 

[AC AA LA FA]

short answer....
Boeing is wrong...

 

[CMH_GSE]

short answer....
Boeing is wrong...

This.
It's going to interstimg to watch the epiphany Boeing and the other creditors have after our contracts get changed in a few weeks.

This is all posturing, all part of the dog and pony show.

The merger will happen and Horton will be out in the end.

 

[etops1]

This.
It's going to interstimg to watch the epiphany Boeing and the other creditors have after our contracts get changed in a few weeks.

This is all posturing, all part of the dog and pony show.

The merger will happen and Horton will be out in the end.

Thank you ..

 

[wings396]

Not much of a surprise here. US has been a solid Airbus customer for nearly 20 years. Other than a few 757s they bought, there hasn't been a large Boeing order since the
733/734s back in the late 80's. I don't think that HP ever purchased any New Boeing A/C period. There was also the issue between the "old' US and Boeing with the cancellation of some 757's that were on order.
The W&G regime kicked-off the Airbus relationship soon after they came onboard with US. I do recall being told that part of the reason for their choice of Airbus over Boeing had to do with a backlog at Boeing due to large orders by DL & CO.

 

[787nightmare]

This.
It's going to interstimg to watch the epiphany Boeing and the other creditors have after our contracts get changed in a few weeks.

This is all posturing, all part of the dog and pony show.

The merger will happen and Horton will be out in the end.

X2

 

[MCI transplant]

Boeing, of course, isn't angry at AA management and probably won't let any "emotions" get in the way of a decision based on the plan it sees as returning more $$$.

Employees, on the other hand . . .

Shrewd move by Parker. Unanimous support by AA's three unions was never in doubt. As I posted the other day, Lorenzo could have teamed up Icahn and Carty and that trio would have been more warmly embraced than Horton & Co.

<_< ------ Just a little trivia for you! The scenario would never have come about!----- For one, Lorenzo hates Icahn's guts! You're forgeting Icahn beat Lorenzo out for control of TWA! He's never forgotten that! When Icahn offered to buy Continental from Lorenzo, he initially agreed, but backed out at the last minute, telling Ichan to go fly a kite! ( and I'm being diplomatic here!)

 

[eolesen]

I find it a bit amusing that a bunch of people on the internet can claim to know better than Boeing.

It's not like they've been a supplier to the industry longer than any other company in the world.

Oh, wait. They have.

They've been a party to just about every airline bankruptcy in US history.

Forgive me if I put a little more faith in their judgement than I do with analysis done on the internet by mostly anonymous forum participants.