US Airways Confirms It Has Hired M&A Advisors For Possible AMR Takeover

[usfliboi]

This must alarm many who do not want AA to merge...

CEO AA.....There have been suggestions since the bankruptcy filing that American should close hubs, break-up the carrier or merge with another airline.

"I do not believe any of these outcomes are in the best interests of American, our people, or our stakeholders," Horton wrote. "But as I have said since the start of this process, there will be many parties with input into the outcome of our restructuring."

 

[AAviator]

Are you serious? He's been saying that since AA filed two months ago. Remember the term "opportunists"?

To recap some recent headlines: DAL has hired advisors. LCC has hired advisors. TPG is interested. DAL may buy LCC. Its called the bankruptcy process.

Really dude?

 

[USA320Pilot]

Swelbar: Pondering More of American’s Bankruptcy “News”: February 1, 2012

Click here to read the story.

 

[USA320Pilot]

American's bankruptcy fuels merger talk

Jim Little, president of the Transport Workers Union, which represents 26,000 ground workers at AMR, said that his members are worried about the possibility of a merger, saying it would be an "agonizing process." Little said AMR CEO Tom Horton's assurances that he wants to stay independent are of limited comfort to employees. "That may be out of his control in this process," said Little.

Ray Neidl, airline analyst with Maxim Group, said that given its current cost disadvantage, AMR isn't a very attractive property for takeover. He said if the turnaround efforts fail, it is likely to be sold off in pieces or be forced to liquidate. "They've got one chance. This is it," he said. "If they don't succeed, there's probably no chance for American."

"We do expect there to be a suitor for the carrier once they straighten out their cost structure," he said. And he said that despite management's stated desire to remain a stand alone, Neidl believes they would consider the right deal at that time. Other analysts agree that American would be ripe for a deal -- assuming it wins approval of its turnaround plan in the bankruptcy process.

Click here to read the story.

 

[USA320Pilot]

AMR CEO on US Airways Bid: 'What's in the Water in Phoenix?'

Click here to read the srticle.

 

[gabby]

That's funny

 

[jimntx]

Well, look on the bright side. If DP hadn't arranged to give millions to an M&A consultant, he might have wasted it by giving some to employees. We can't have that now, can we? It would set a bad precedent for AMR executives. They are determined to prove that this bankruptcy is all the employees' fault.

 

[USA320Pilot]

DEALTALK-Twice shunned, US Air again sets sights on merger

Click here to read the story.

 

[USA320Pilot]

AMR’s Horton Expects American to Exit Bankruptcy Without Merger

Click here to read the story.

 

[ChockJockey]

AMR CEO on US Airways Bid: 'What's in the Water in Phoenix?'

Click here to read the srticle.

I’m not sure what’s in the water out there in Phoenix. Maybe it’s the cactus.

Maybe it’s the cactus.

cactus

Well Tom, you won't be laughing when that's your callsign.

 

[USA320Pilot]

What to Expect of the American Airlines Bankruptcy

Thomas C. Lawton is a professor at Dartmouth's Tuck School of Business.

American Airlines is late to the (merger) party and few prospective partners remain. U.S. Airways is the best prospect—after going through two Chapter 11 filings in the last decade and posting a $71 million net profit last year. It's not ideal, but few options remain. AMR, like its network airline peers, has run out of choices and seems lacking in new ideas. Until they get their costs and debt under control, they will strategically remain on the back foot as budget rivals and global competitors soar to new heights.

Click here to read the story.

 

[BoeingBoy]

Perhaps Professor Lawton should come down from his ivory tower and see how the real world works...

"protracted negotiations with trade unions to end its traditionally generous pension plans" - since when is terminating pensions during bankruptcy a "protracted" process?

"Huge pension costs are an ongoing problem in the industry" - every big carrier but AA has used bankruptcy to take care of those (so much for "ongoing") and AA will do the same.

"Their response has been consolidation" - I guess capacity discipline, ancillary fees and fare increases were wasted efforts.

"Until they get their [AA] costs and debt under control" - geez, I thought that was what the bankruptcy filing was all about...

Jim

 

[jimntx]

Evidently, Prof. Lawton is best known for his incisive grasp of the obvious.

 

[BoeingBoy]

I'm not sure he'd recognize the obvious if it smacked him in the face...

Jim

 

[AAviator]

The King of spin cracks me up... How did he miss these highlights from Swelbar?

http://www.swelblog.com/articles/swelbar-pondering-more-of-americans-bankruptcy-news.html


But there we go again, speculating. In order of least employee/corporate disruption I rank today’s possibilities as follows:

American as a stand-alone
American and IAG/oneworld
American and TPG Capital
American and IAG/oneworld, TPG Capital
American and IAG/oneworld, TPG Capital and US Airways
American and US Airways
American and most anything Delta
Liquidation of Assets