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Did you easties get that?Actually the ATSB agreed to lower the amount of cash collateral 2 or 3 times, and US was still on the verge of defaulting on the loan 27 days before the merger. Also, the ATSB didn't let US use the money as DIP financing.
As did all the other outside investors except Air Wisconsin, who provided DIP financing which was spent as fast as it came in. That's why I keep saying it doesn't matter who raised the money - the merger was what enabled it to be raised. No merger, no money. If Parker had said no, like everyone else did, US would have liquidated.
Jim
Did you easties get that?
THAT'S gonna leave a mark!
After thinking about Swelbar's well written column there seems to be many more questions than answers. Why does Swelbar ask so many questions?
In my opinion, there are two major issues that Swelbar did not address.
One, what about the social issue? Tom Horton has repeatedly addressed his desire for AMR to remain independent, successfully independently restructure, and then possibly complete a corporate combination after they company emerges from it formal reorganization. Why? Most likely he wants to keep his job, AMR's management team wants to keep their jobs, and they want to run a major airline.
Tom Horton could care less about his paycheck from AA. If he walked away from AA, his phone would be ringing off the hook with offers to start tomorrow morning. Pilots are a dime a dozen, not so with top dogs, even recycled ones.
Look at where Steven Wolfe, landed:
http://people.forbes.com/profile/stephen-m-wolf/63618
How about Glenn Tilton: http://en.wikipedia.org/wiki/Glenn_Tilton
Ever Rakesh Gangwal: http://people.forbes.com/profile/rakesh-gangwal/59607
To think he's worried about his job is pure lunacy.
two, will AMR's unions accept the company's drastic labor contract concessions (in some cases for example the pilots deeper than LOA 93 with a 1:4 trip rig and RJs paying Captain rates of $109/hour) or Doug Parker's apparent offers that would be less of cut? According to the WSJ, "US Airways could try to persuade the unions representing pilots, flight attendants, mechanics, airport ground workers and others, that the higher revenue the combined airline would generate could be shared with labor by way of less-drastic contract concessions than AMR is seeking."
1. Labor has two choices right now. Negotiate a new deal, or live by the 1113c, should the judge grant the filing. Want to bet there will be consensual agreements around the 3rd week of May? Part two.... How the hell will Parker afford such and offer? Just recently, some light bulbs are starting to go on that airline "synergies" live next door to the tooth fairy. Besides the 1113c BLOWS AWAY LCC compensation packages.
2. Bates will listen to anyone who may provide a better long term deal for AA pilots. This includes Parker, and the rest of the interested parties that will be turning up. Part of the dance sunshine.
Bill Swelbar is a bright man he he has been writing a number of columns that seem to argue against US Airways completing its attempt to acquire AA. But, I'm curious why Swelbar did not address the two points above and how will these two questions affect Doug Parker's plans?
Probably because its BS. There are no social issues. The problem is, the issues are structural, economic, network and, logistical.
THAT'S gonna leave a mark!
Start making peace with your delay then because its going to happen. Hummel was out here last week to discuss merger with Parker.I'm AAA east and in no mood to merge with AA anyway...
so stick it and enjoy
a merger just means delay to our attrition.
I'm AAA east and in no mood to merge with AA anyway...
so stick it and enjoy
a merger just means delay to our attrition.
In addition to not adding anything of substance here, you're not even doing that.