US Airways Has AA Labor Backing for AMR Takeover: Sources

[USA320Pilot]

US Airways Has AA Labor Backing for AMR Takeover: Sources

US Airways has been successfully gathering union support for its effort to merge with bankrupt AMR, and could unveil a union-backed bid as early as next week.

The carrier's executives have also been presenting their case on Capitol Hill, "making promises to reverse job reductions at American," said a person who was informed of those discussions.

Click here to read the story.

 

[FWAAA]

Just another installment of Ted Reed's AA mergerporn.

 

[etops1]

Just another installment of Ted Reed's AA mergerporn.

Whatever dude . This is really happening . Wake up ..
You guys just posted a 1.7 billion dollar loss . Your on crutches .

 

[EastCheats]

Ted Reed covers the transportation industry. He previously covered the airline industry for 20 years for publications including The Charlotte Observer, Miami Herald and Sacramento Bee. He also worked for US Airways, writing internal publications and speeches for the company's executives. He is a graduate of Wesleyan University and holds a master's in journalism from Columbia University. He is the author of Carl Furillo: Brooklyn Dodgers All-Star, the first Furillo biography.

I would not go to Ted Reed for news. He's more like a speech writer for US Airways executives. Guess what, it's right there on his biography I posted above.

 

[TWU informer]

Just another installment of Ted Reed's AA mergerporn.

Maybe so, but I very much interested myself, and I am included in that "labor".

I have no faith that AA Management can use these concessions any better than they have used the concessions given over and over in my 28 year career.

Time for a different approach.
And if it gives me the chance to vote out the TWU, even better,

 

[wrencher]

Maybe so, but I very much interested myself, and I am included in that "labor".

I have no faith that AA Management can use these concessions any better than they have used the concessions given over and over in my 28 year career.

Time for a different approach.
And if it gives me the chance to vote out the TWU, even better,

I as well. After going through this for my Fouth time now you don't get too many of these chances to protect at least what you have.

 

[700UW]

The loss due to operations was only $248 million compared to a loss of over $400 million a year ago.

$1.4 billion was due to the bankruptcy and lease rejections. Its a paper loss and not real dollars.

 

[ord78]

Just another installment of Ted Reed's AA mergerporn.

Perhaps so. But I for one will listen to whatever they have to offer, if anything. And if I believe my prospects are better with an LCC bid I'll take that rather than face the ludicrous and punitive term sheet from Horton.

 

[amt66]

Anybody that thinks us will absorb 9000 mechs is out of their minds!!! This will only benefit the top 2000 at best!

 

[WorldTraveler]

Even if the article is true, it still doesn't say that any of AMR's other creditors support a takeover.... and that is what will be necessary to move forward. Labor alone cannot make a deal happen.

 

[FWAAA]

Here are two paragraphs discussing the necessary approvals to confirm a plan of reorganization, no matter who proposes it:

Plan of Reorganization. On March 23, 2012, the Bankruptcy Court entered an order pursuant to Section 1121(d) of the Bankruptcy Code extending the exclusivity periods during which only the Debtors have the right to file a plan of reorganization and solicit and obtain acceptances of such plan. The date until which the Debtors have to file a plan of reorganization has been extended through and including September 28, 2012. If the Debtors file a plan of reorganization on or prior to such date, the Debtors have an exclusive period to solicit and obtain acceptances for such plan through and including November 29, 2012. These extensions are without prejudice to the Debtors' right to seek further extensions of the exclusivity periods. If the Debtors' exclusivity period lapses, any party in interest may file a plan of reorganization for any of the Debtors. In addition to being voted on by holders of impaired claims and equity interests, a plan of reorganization must satisfy certain requirements of the Bankruptcy Code and must be approved, or confirmed, by the Bankruptcy Court in order to become effective. A plan of reorganization has been accepted by holders of claims against and equity interests in the Debtors if (1) at least one-half in number and two-thirds in dollar amount of claims actually voting in each impaired class of claims have voted to accept the plan and (2) at least two-thirds in amount of equity interests actually voting in each impaired class of equity interests has voted to accept the plan.

Under certain circumstances set forth in Section 1129b of the Bankruptcy Code, the Bankruptcy Court may confirm a plan even if such plan has not been accepted by all impaired classes of claims and equity interests. A class of claims or equity interests that does not receive or retain any property under the plan on account of such claims or interests is deemed to have voted to reject the plan. The precise requirements and evidentiary showing for confirming a plan notwithstanding its rejection by one or more impaired classes of claims or equity interests depends upon a number of factors, including the status and seniority of the claims or equity interests in the rejecting class (i.e., secured claims or unsecured claims, subordinated or senior claims, preferred or common stock). Generally, with respect to common stock interests, a plan may be "crammed down" even if the shareowners receive no recovery if the proponent of the plan demonstrates that (1) no class junior to the common stock is receiving or retaining property under the plan and (2) no class of claims or interests senior to the common stock is being paid more than in full.

At this time, nobody even knows how large the employees' or PBGC claims are. Those numbers will be known after the hearings on contract abrogation and/or pension plan termination (if freezes do not occur).

 

[wings396]

Even if the article is true, it still doesn't say that any of AMR's other creditors support a takeover.... and that is what will be necessary to move forward. Labor alone cannot make a deal happen.

So prior to this labor was the main obstacle, but now having them onboard isn't enough....
One amazing spinmaster..
Oh that's right your brother works for AA.
Is he looking at the doorway if this happens?

 

[Mrs. McFly]

Anybody that thinks us will absorb 9000 mechs is out of their minds!!! This will only benefit the top 2000 at best!

Of course it will, and same for everyone else. More cuts are coming if we link up with this fool. No way we keep even what AA is offering because US will have to be brought up into the fold, especially if there will be any unity and harmony. And we all know Doug Parker's track record on that. He would rather have the animosity because they equal cost savings. We've had enough of that on our end, and our end is pretty mild compared to east vs. west. No thanks!

 

[UPNAWAY]

Last I heard the creditors were listening, interested and most importantly nit impressed with AMR current plan.
PBGC could also be a big player, if they can somehow structure a deal to save the pensions then the Gov't is likely to be on board as for as any merger approval.

 

[TWU informer]

Even if the article is true, it still doesn't say that any of AMR's other creditors support a takeover.... and that is what will be necessary to move forward. Labor alone cannot make a deal happen.

True, on one hand.

On the other, Labor can turn AA into another Eastern Airlines and then go to work elsewhere.
Creditors and Judges can mandate all they want. But if Employees still refuse to be decent workers/partners/employees under the mandated terms, it all becomes meaningless.

Everything is not really controlled in the legal system unless Labor allows it to be.

Labor alone can make even more than a deal happen if and when it decides to do so.