Is USAirways hostile takeover Of AA for Real?
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The only "retort " here it you ..
OP
PITbull
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Read on another thread that US Airways has purchased some unsecured debt of AA so they have a seat on the unsecured creditor's board with AMR. Talk about "back door interference". This is an example of how they operate.
http://www.wfaa.com/news/business/USAirways-quietly-became-creditor-of-American-Airlines-162268805.html
"Sneaky is as sneaky does"
http://www.wfaa.com/news/business/USAirways-quietly-became-creditor-of-American-Airlines-162268805.html
"Sneaky is as sneaky does"
signals
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I was actually trying to point out that there are loopholes around antitrust issues. As far as a DL/AA merger, although anything is possible, I don't think it will ever happen. Delta would open a Pandora's box if it goes there, that in the long run would hurt its bottom line.
WorldTraveler
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Delta doesn't need or want all of AA. Their CEO has said they only want the DFW and MIA hubs - and it is possible they may never get the chance.
But it is also possible that DL could partner with another airline to split AA and could come up with the highest bid to get what they want.
It will be very difficult to prove that a "parted out AA" is worth more than one that remains intact - but it is not impossible to do.
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US' move at buying AMR debt will likely have no effect on the process. FIrst, it is too small to be meaningful and second it apparently was bought after AMR filed, so the recovery might be less than what it would have been if they had been a debtor pre-C11.
But it is also possible that DL could partner with another airline to split AA and could come up with the highest bid to get what they want.
It will be very difficult to prove that a "parted out AA" is worth more than one that remains intact - but it is not impossible to do.
.
US' move at buying AMR debt will likely have no effect on the process. FIrst, it is too small to be meaningful and second it apparently was bought after AMR filed, so the recovery might be less than what it would have been if they had been a debtor pre-C11.
CactUSmx
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And then AA filed Bankruptcy...Nice order AA may never got to see...Good Luck with Horton as your fearless leader...AA will be in bankruptcy #2 by the time they see there first new Airbus arrive.
Frank Szabo
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... as is probably the intent of the Parker/Horton show.
If there is a acquisition or merger, how would the pay scales of all TWU & IAM groups be worked out? Would the company doing the acquiring raise or lower the acquired companies pay scale to match its own? Or would there just be two differen pay scales? How would or should this be worked out? Thanks
signals
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If I didn't know any better this sounds like a slot-swap revisited. Could "another airline" be US? Will Delta give Parker a shiny nickle for a $100 bill???
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PITbull
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Thanks. That makes good sense. It was probably done ... to minimize the negative attention of them interfering with the AA bk due process. Just enought of an investment to stay under the radar and scrutiny of the feds. Looks better if they have a seat on the UCC.
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Below link is the presentation Doug Parker gave in DCA today at the National Press Conference touting the benefits of a merger with American Airlines.
How many holes can you find in this speech!!!!???????
US Airways has been able to show a profit because of the past two bankruptcies that gave them the lowest employee costs in the industry. He speaks to all the benefits in bankruptcy e.g. destroying contracts and forcing new ones, and screwing the creditors by getting out of lease liabililites and dumping that to the taxpeayers. He goes further on to say that AA does not have a presence on the east coast and misses out on the revenue stream....meanwhile back at the US airways OK corrale, they closed Pittsburgh, BOS and LGA in 4 short years of emerging from BK. He doesn't mention that mergers are WORSE for the flying public because of less competition, whereby gouching the public with increase fares to infinity!
And may I add, the only hiring US Airways has been doing of late is because of massive steady attrition over the years. Period...who is he trying to fool here???????
And this quote makes me laugh, how blatantly disingenuous!
"
First of all, from the first time we ever mentioned the benefits of mergers we have always said there is no need for US Airways to participate – and that is most certainly the case today."
UHHH, HELLO???? COME AGAIN????? US Airways tried to acquire DL while they were in BK to the tune of $11 billion in 2006. That flopped as they did not get congressional approval.
http://t.co/pMqDGeaE
How many holes can you find in this speech!!!!???????
US Airways has been able to show a profit because of the past two bankruptcies that gave them the lowest employee costs in the industry. He speaks to all the benefits in bankruptcy e.g. destroying contracts and forcing new ones, and screwing the creditors by getting out of lease liabililites and dumping that to the taxpeayers. He goes further on to say that AA does not have a presence on the east coast and misses out on the revenue stream....meanwhile back at the US airways OK corrale, they closed Pittsburgh, BOS and LGA in 4 short years of emerging from BK. He doesn't mention that mergers are WORSE for the flying public because of less competition, whereby gouching the public with increase fares to infinity!
And may I add, the only hiring US Airways has been doing of late is because of massive steady attrition over the years. Period...who is he trying to fool here???????
And this quote makes me laugh, how blatantly disingenuous!
"
First of all, from the first time we ever mentioned the benefits of mergers we have always said there is no need for US Airways to participate – and that is most certainly the case today."
UHHH, HELLO???? COME AGAIN????? US Airways tried to acquire DL while they were in BK to the tune of $11 billion in 2006. That flopped as they did not get congressional approval.
http://t.co/pMqDGeaE
Parker did not fail to get Congressional approval - there is no such thing. Parker's attempted takeover of DL failed because the DL creditors were not going to vote for the merger with US.
OP
PITbull
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I think there was a congressional hearing,from what i can remember, and Parker was chastized for coming up with the 11 billion $$ for DL, when only a year previous, U had dumped all the pension plans to the PBGC before emerging from BK again in 2005.
From what you post, the creditors had the final say, but I believe there were antitrust issues at that time with regard to legacy carriers consolidating. Consequentely, the consolidation occurred with the laegacies anyway as time progressed.
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