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🙄US-AA Merger Articles (Merged Topics)
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EastCheats
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American Airlines merger could be just weeks away
Phoenix Business Journal by Lance Murray, Digital Content Producer
Date: Tuesday, August 14, 2012, 2:38pm MST - Last Modified: Tuesday, August 14, 2012, 2:40pm MST
Enlarge Image
Tom Horton
Lance Murray
American Airlines CEO Tom Horton told a British financial newspaper that the Fort Worth, Texas-based airline will decide in "a matter of weeks," whether it will pursue a merger with another airline.
The Fort Worth Star-Telegram reported that Horton made the statement in a interview published Sunday in the Financial Times.
An American spokesman told the Star-Telegram that Horton's statement doesn't mean the airline is accelerating its planning process as it traverses Chapter 11 bankruptcy. American is awaiting the resolution of its labor agreements in court in the coming weeks.
"The timetable for our review of alternatives has not changed and we expect it to occur by or into the fall time frame," spokesman Andrew Backover told the Star-Telegram.
In the Financial Times interview, Horton said that Tempe-based US Airways might be an attractive merger partner under the proper circumstances.
Backover told the Star-Telegram that Horton was interviewed by the British publication last week before the Allied Pilots Association rejected American's final contract offer
Phoenix Business Journal by Lance Murray, Digital Content Producer
Date: Tuesday, August 14, 2012, 2:38pm MST - Last Modified: Tuesday, August 14, 2012, 2:40pm MST
Enlarge Image
Tom Horton
Lance Murray
American Airlines CEO Tom Horton told a British financial newspaper that the Fort Worth, Texas-based airline will decide in "a matter of weeks," whether it will pursue a merger with another airline.
The Fort Worth Star-Telegram reported that Horton made the statement in a interview published Sunday in the Financial Times.
An American spokesman told the Star-Telegram that Horton's statement doesn't mean the airline is accelerating its planning process as it traverses Chapter 11 bankruptcy. American is awaiting the resolution of its labor agreements in court in the coming weeks.
"The timetable for our review of alternatives has not changed and we expect it to occur by or into the fall time frame," spokesman Andrew Backover told the Star-Telegram.
In the Financial Times interview, Horton said that Tempe-based US Airways might be an attractive merger partner under the proper circumstances.
Backover told the Star-Telegram that Horton was interviewed by the British publication last week before the Allied Pilots Association rejected American's final contract offer
BoeingBoy
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firedougparker
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With all the mismanagement from Parker and his cronies it would not surprise me one bit to end up in Chapter 11 for a THIRD time.
But don't worry. Doug won't let that happen. He'll impose new fees first to drive away even more customers!
But don't worry. Doug won't let that happen. He'll impose new fees first to drive away even more customers!
USpilotDCA
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What makes Parker a cronie? His pilots don't have a contract because of their own issues. And it seems to me that his employees are doing okay. How else do you explain number one on time stats?
You bash Parker at every turn, but the company seems to be run okay. So what gives?
You bash Parker at every turn, but the company seems to be run okay. So what gives?
firedougparker
Member
Here's what gives, USpilotDCA: Doug is acting in his own best interests but not those of the whole company. He has this idea in his head that a merger will solve every problem under the sun. But it won't. In fact it will create a whole new set of problems for all of us.
As you said, we have good on time stats and we are making money. So if it's not broken, what is Doug trying to fix, exactly? I mean other than his ego.
More and more US people are starting to see the light on this. Don't take my word for it, either - USAPA is just about in full blown rebellion over the idea of getting terms similar to the AA pilots bankruptcy deal.
As you said, we have good on time stats and we are making money. So if it's not broken, what is Doug trying to fix, exactly? I mean other than his ego.
More and more US people are starting to see the light on this. Don't take my word for it, either - USAPA is just about in full blown rebellion over the idea of getting terms similar to the AA pilots bankruptcy deal.
ChockJockey
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I think it's the combination of the hyperbole and insincerity here that has me convinced you are either a troll or some hack with an "interest" of his own.
Doug's ambitions and intentions in regards to consolidation have been well-known for years. How can you have a blog and heroic campaign against the man and not know this?
You think the pilot union whose members can't sport a yellow lanyard for fear of court action is capable of organizing a "full-blown" rebellion?
You are not very good at this.
EastCheats
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FORT WORTH, Texas and TEMPE, Ariz., Aug. 31, 2012 /PRNewswire/ -- AMR Corporation ("AMR"), the parent company of American Airlines®, and US Airways Group, Inc. (LCC) today announced that they have entered into a non-disclosure agreement ("NDA"), under which the companies have agreed to exchange certain confidential information and, in close collaboration with AMR's Unsecured Creditors Committee, to work in good faith to evaluate a potential combination.
The companies do not expect to provide any further announcements regarding the status of any such discussions unless and until the parties have entered into a transaction or discussions between the parties have been terminated. Furthermore, AMR and US Airways have each agreed while they are evaluating a potential combination that they and their representatives will not engage in discussions with other parties concerning a potential combination of AMR and US Airways. The companies noted that there can be no assurance that a transaction will result from these discussions.
The companies do not expect to provide any further announcements regarding the status of any such discussions unless and until the parties have entered into a transaction or discussions between the parties have been terminated. Furthermore, AMR and US Airways have each agreed while they are evaluating a potential combination that they and their representatives will not engage in discussions with other parties concerning a potential combination of AMR and US Airways. The companies noted that there can be no assurance that a transaction will result from these discussions.
Dont call me Shirley
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http://seekingalpha.com/article/844711-buy-us-airways-the-future-will-be-much-brighter-than-the-past-with-or-without-american?source=yahoo
The airline industry of today is not what it was even a few short years ago. Most companies in this sector are still being punished for their past transgressions. However, for long-term investors, this is creating a great opportunity to invest in the sector. We have written about several airlines in the past, including Delta (DAL) and Hawaiian (HA). And today we would like to highlight another airline, one that we believe is still a buy, even with a sizeable rally so far this year. And that airline is US Airways (LCC).
The article is very much from a Wall St view, with not much about how customers or employees are faring. Nonetheless, it is a positive one.
The airline industry of today is not what it was even a few short years ago. Most companies in this sector are still being punished for their past transgressions. However, for long-term investors, this is creating a great opportunity to invest in the sector. We have written about several airlines in the past, including Delta (DAL) and Hawaiian (HA). And today we would like to highlight another airline, one that we believe is still a buy, even with a sizeable rally so far this year. And that airline is US Airways (LCC).
The article is very much from a Wall St view, with not much about how customers or employees are faring. Nonetheless, it is a positive one.
signals
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Pig man, big man
ah-ha charade U are.
Too bad I'm on your ignore button or else meet your superior who is good at all!
johnny kat
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AMR Risks Bankruptcy Delay on Pilot Rift as US Air Waits
By Mary Schlangenstein - Sep 12, 2012 2:13 PM ET
While AMR’s unsecured creditors committee wants a contract approved by pilots before leaving Chapter 11, Fort Worth, Texas- based American is imposing cost cuts spurned by the union. No new talks are set in bargaining that began in 2006, and the Allied Pilots Association wants members to authorize a strike.
Enlarge image
AMR Risks Restructuring Delay on Pilot Rift as US Airways Waits
Mike Fuentes/Bloomberg
AMR Corp.'s American Airlines and its pilots began bargaining in September 2006, and even the Nov. 29 bankruptcy filing that AMR blamed on high labor costs hasn’t been enough to break the stalemate.
AMR Corp.'s American Airlines and its pilots began bargaining in September 2006, and even the Nov. 29 bankruptcy filing that AMR blamed on high labor costs hasn’t been enough to break the stalemate. Photographer: Mike Fuentes/Bloomberg
Creditors’ patience may be tested as AMR struggles to show that it can reorganize successfully, said Fred Lowrance, an Avondale Partners LLC analyst in Nashville, Tennessee. Even victories such as a new flight attendant accord are tempered by that union’s support for a US Airways merger resisted by AMR.
“Members of the unsecured creditors committee aren’t sitting there with their heads in the sand,” Lowrance said in an interview. “They got the results of the pilot vote -- the sound rejection of the last offer -- and have heard the rhetoric from flight attendants leaders. That’s why it’s hard for me to fathom that we have a stand-alone American after this thing.”
AMR is implementing cuts on pilots as soon as today after winning authorization last week from U.S. Bankruptcy Judge Sean Lane, who is deciding in New York whether to approve contracts with other work groups. US Airways has paved the way for a merger with conditional contracts with American’s major unions.
Bonds, Shares
Takeover speculation has buoyed AMR debt this year and helped US Airways shares more than double. AMR’s 6.25 percent convertible notes due October 2014 fell 0.25 cent to 66.25 cents on the dollar at 1:31 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. US Airways rose 1.8 percent to $11.83.
For AMR, trying to exit bankruptcy without a pilot deal may discourage potential investors because future costs wouldn’t be known and a walkout would be a possibility, said Hunter Keay, a Wolfe Trahan & Co. analyst in New York. AMR has said its original goal of leaving court protection in 2012 won’t be met.
The creditors committee’s “strong desire” is for a consensual agreement between American and the Allied Pilots Association while AMR remains in court protection, according to Jack Butler, the panel’s attorney.
‘Preferred Course’
“There is a credible legal path to emerge without a deal, but that is not the committee’s preferred course,” he said in an interview.
A consensual agreement also remains AMR’s aim, said Bruce Hicks, a spokesman. A long-term contract would replace the terms being dictated by American and set future pilot costs. Chief Executive Officer Tom Horton has said he must pare annual labor expenses by more than $1 billion to successfully restructure.
“It won’t necessarily be easy,” Hicks said. “But the pilots understand, just as we do, that we both need the assurances of a consensual agreement long term.”
Achieving that would mean mending labor ties that Lowrance said are the worst in the industry. Pilots walked out in 1997 before then-President Bill Clinton intervened minutes later, and staged an 11-day sickout in 1999 that cost American $225 million and led to a fine against the union.
‘New Management’
“Labor needs a new management team to repair the relationship,” Savanthi Syth, a Raymond James & Associates Inc. analyst based in St. Petersburg, Florida, said in an interview. “It’s becoming more evident that it is going to be difficult for the current management to do so. That’s another advantage of a merger -- not just what it brings to the network but from a labor peace perspective.”
US Airways declined to comment immediately today, said Ed Stewart, a spokesman for the Tempe, Arizona-based airline.
The APA’s board authorized a strike vote starting today through Oct. 3 in response to AMR’s setting of new contract terms. While federal law prohibits a walkout now, that balloting and the prospect of an eventual strike may scare away investors and passengers.
“It’s going to be an overhang going forward and doesn’t provide a very positive symbol for what is happening at American Airlines now between its pilots and management,” said Dennis Tajer, an APA spokesman. The union has about 8,000 active pilots.
Six Years
American and its pilots began bargaining in September 2006, and even the Nov. 29 bankruptcy filing that AMR blamed on high labor costs hasn’t been enough to break the stalemate. The last contract offer to pilots was rejected Aug. 8 with 61 percent of the vote even though it would have provided a stake in a restructured AMR, raises and protection against layoffs.
“The anger there is tangible,” said Vicki Bryan, a Houston-based senior bond analyst for Gimme Credit LLC. “You can just feel it. It brings into sharper focus the importance of the union relationships with US Airways.”
Excluding any cuts involving pilots, American has won concessions from other unions that will shrink the number of job cuts, to 7,625 from a planned 10,975. Savings from unions will be as much as $900 million a year, and as much as $1.1 billion when non-union workers are included. The amount depends on pilot givebacks, which may total $315 million to $370 million.
The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York.
To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net
To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net
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By Mary Schlangenstein - Sep 12, 2012 2:13 PM ET
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QUEUE
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While AMR’s unsecured creditors committee wants a contract approved by pilots before leaving Chapter 11, Fort Worth, Texas- based American is imposing cost cuts spurned by the union. No new talks are set in bargaining that began in 2006, and the Allied Pilots Association wants members to authorize a strike.
Enlarge image
AMR Risks Restructuring Delay on Pilot Rift as US Airways Waits
Mike Fuentes/Bloomberg
AMR Corp.'s American Airlines and its pilots began bargaining in September 2006, and even the Nov. 29 bankruptcy filing that AMR blamed on high labor costs hasn’t been enough to break the stalemate.
AMR Corp.'s American Airlines and its pilots began bargaining in September 2006, and even the Nov. 29 bankruptcy filing that AMR blamed on high labor costs hasn’t been enough to break the stalemate. Photographer: Mike Fuentes/Bloomberg
Creditors’ patience may be tested as AMR struggles to show that it can reorganize successfully, said Fred Lowrance, an Avondale Partners LLC analyst in Nashville, Tennessee. Even victories such as a new flight attendant accord are tempered by that union’s support for a US Airways merger resisted by AMR.
“Members of the unsecured creditors committee aren’t sitting there with their heads in the sand,” Lowrance said in an interview. “They got the results of the pilot vote -- the sound rejection of the last offer -- and have heard the rhetoric from flight attendants leaders. That’s why it’s hard for me to fathom that we have a stand-alone American after this thing.”
AMR is implementing cuts on pilots as soon as today after winning authorization last week from U.S. Bankruptcy Judge Sean Lane, who is deciding in New York whether to approve contracts with other work groups. US Airways has paved the way for a merger with conditional contracts with American’s major unions.
Bonds, Shares
Takeover speculation has buoyed AMR debt this year and helped US Airways shares more than double. AMR’s 6.25 percent convertible notes due October 2014 fell 0.25 cent to 66.25 cents on the dollar at 1:31 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. US Airways rose 1.8 percent to $11.83.
For AMR, trying to exit bankruptcy without a pilot deal may discourage potential investors because future costs wouldn’t be known and a walkout would be a possibility, said Hunter Keay, a Wolfe Trahan & Co. analyst in New York. AMR has said its original goal of leaving court protection in 2012 won’t be met.
The creditors committee’s “strong desire” is for a consensual agreement between American and the Allied Pilots Association while AMR remains in court protection, according to Jack Butler, the panel’s attorney.
‘Preferred Course’
“There is a credible legal path to emerge without a deal, but that is not the committee’s preferred course,” he said in an interview.
A consensual agreement also remains AMR’s aim, said Bruce Hicks, a spokesman. A long-term contract would replace the terms being dictated by American and set future pilot costs. Chief Executive Officer Tom Horton has said he must pare annual labor expenses by more than $1 billion to successfully restructure.
“It won’t necessarily be easy,” Hicks said. “But the pilots understand, just as we do, that we both need the assurances of a consensual agreement long term.”
Achieving that would mean mending labor ties that Lowrance said are the worst in the industry. Pilots walked out in 1997 before then-President Bill Clinton intervened minutes later, and staged an 11-day sickout in 1999 that cost American $225 million and led to a fine against the union.
‘New Management’
“Labor needs a new management team to repair the relationship,” Savanthi Syth, a Raymond James & Associates Inc. analyst based in St. Petersburg, Florida, said in an interview. “It’s becoming more evident that it is going to be difficult for the current management to do so. That’s another advantage of a merger -- not just what it brings to the network but from a labor peace perspective.”
US Airways declined to comment immediately today, said Ed Stewart, a spokesman for the Tempe, Arizona-based airline.
The APA’s board authorized a strike vote starting today through Oct. 3 in response to AMR’s setting of new contract terms. While federal law prohibits a walkout now, that balloting and the prospect of an eventual strike may scare away investors and passengers.
“It’s going to be an overhang going forward and doesn’t provide a very positive symbol for what is happening at American Airlines now between its pilots and management,” said Dennis Tajer, an APA spokesman. The union has about 8,000 active pilots.
Six Years
American and its pilots began bargaining in September 2006, and even the Nov. 29 bankruptcy filing that AMR blamed on high labor costs hasn’t been enough to break the stalemate. The last contract offer to pilots was rejected Aug. 8 with 61 percent of the vote even though it would have provided a stake in a restructured AMR, raises and protection against layoffs.
“The anger there is tangible,” said Vicki Bryan, a Houston-based senior bond analyst for Gimme Credit LLC. “You can just feel it. It brings into sharper focus the importance of the union relationships with US Airways.”
Excluding any cuts involving pilots, American has won concessions from other unions that will shrink the number of job cuts, to 7,625 from a planned 10,975. Savings from unions will be as much as $900 million a year, and as much as $1.1 billion when non-union workers are included. The amount depends on pilot givebacks, which may total $315 million to $370 million.
The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York.
To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net
To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net
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johnny kat
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I apologize for the editing format.
firedougparker
Member
Nice misdirection there. Attacking the person instead of the argument. That's called a fallacy, in case you were wondering. Be sure to play again.
Obviously I know this. The blog might be new, but my speaking out against Doug's merger obsession is not.
Indeed I do. There is so much resentment just below the surface. It's a volcano waiting to explode. One false move by the Dougster and he is going to have major, public problems on his hands. The only thing that would save him would be a unified pilot contract.
My blog's traffic numbers and commenters say otherwise.
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