JFK Fleet Service
Veteran
I dunno,only walls I read say 'Handles out'...
WSJ: Delta, TPG Assessing Bids for American Airlines
- Thread starter Veritas
- Start date
CactUS4Ever
Advanced
- Jul 29, 2009
- 183
- 78
Handles Out means "start packing your bags"
CactUS4Ever
Advanced
- Jul 29, 2009
- 183
- 78
If you read the title of this post it says WSJ: Delta,TPG Assessing bids for American Airlines. Assessing does not mean studying like u said and by the way AA management is meeting with it's creditors in 1 month. If the creditors are not happy with the reorganization plan let the bidding begin.
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #79
You can be assured that WT hasn't missed a beat but I am doing a little world traveling ... while closely monitoring developments.
I have said for years that an AA/AMR reorg would result in the requirement that the creditors' interests be given the highest priority and that remains the same today. Whatever party can provide the best expected return will will... AMR has time to make its case to do the job internally but the creditors will consider other transactions.
.
I still believe that AMR's best interests when considering their long term future comes from an individual turnaround plan but that is not their exclusive choice any longer.
.
There is no doubt that an airline is far better suited to preserve the value that is AA than when compared to an investment company that is interested in getting their investment returned as quickly as possible.
.
Predictions that DL could not acquire the majority of AA or that it would have to be carved up are overblown. The DOJ does not consider size but rather market concentration and access. DL's concessions would undoubtedly be focused on further reducing the growth of the combined entity at NYC, the same type of concessions that US would have to give at DCA. Other than that, there are few markets where DL could not acquire nearly all of AA if it wanted to.
.
DL has both merged with other airlines and done asset acquisitions. Mergers have involved full integration of employees.
Whatever cuts that need to be made will be made regardless of a merger proposal or not.
.
Nothing has happened yet and AMR does have a period of exclusivity. But don't underestimate the strategic importance of starting the process now and making it clear that there are parties willing to make viable offers for AMR. If nothing else, it makes the task that AA has of turning itself around that much more important to get right and for AA to provide appropriate assurances to creditors. Whether DL or any other carrier pursues or ultimately succeeds at an acquisition/merger of AA doesn't change the pressure that AA will feel during the reorg process.... predicted before but all the more certain now.
I have said for years that an AA/AMR reorg would result in the requirement that the creditors' interests be given the highest priority and that remains the same today. Whatever party can provide the best expected return will will... AMR has time to make its case to do the job internally but the creditors will consider other transactions.
.
I still believe that AMR's best interests when considering their long term future comes from an individual turnaround plan but that is not their exclusive choice any longer.
.
There is no doubt that an airline is far better suited to preserve the value that is AA than when compared to an investment company that is interested in getting their investment returned as quickly as possible.
.
Predictions that DL could not acquire the majority of AA or that it would have to be carved up are overblown. The DOJ does not consider size but rather market concentration and access. DL's concessions would undoubtedly be focused on further reducing the growth of the combined entity at NYC, the same type of concessions that US would have to give at DCA. Other than that, there are few markets where DL could not acquire nearly all of AA if it wanted to.
.
DL has both merged with other airlines and done asset acquisitions. Mergers have involved full integration of employees.
Whatever cuts that need to be made will be made regardless of a merger proposal or not.
.
Nothing has happened yet and AMR does have a period of exclusivity. But don't underestimate the strategic importance of starting the process now and making it clear that there are parties willing to make viable offers for AMR. If nothing else, it makes the task that AA has of turning itself around that much more important to get right and for AA to provide appropriate assurances to creditors. Whether DL or any other carrier pursues or ultimately succeeds at an acquisition/merger of AA doesn't change the pressure that AA will feel during the reorg process.... predicted before but all the more certain now.
All the above can make all the noise and proposal's they want, but AA has esclusivity rights for 120 days to 18 months. Of all the creditors there is only 9 creditors on the commitie, 3 unions and PBCG who are in sync Boeing, HP, who holds all the IT contracts, Willmington Trust, Bank of NY Mellon, and maunfactures trust. These 9 creditors on the commitie get to vote. The AA board want's to keep AA a stand alone, but one can try. DAL,TPG,US and who have you must be able to make a case and prove to the Judge this a better deal and after AA has presented there new business plan, and AA is till working on A/C lease's, the new plan has yet to be presented to the court, thus no sec 1113 yet. Horton has said he is looking at 12-18 months in BK, it could be a little less or more, the Judge's docket shows hearings scheduled up to 12/12 at this time.
AA being the DIP, has no restrictions and doesn't have to answer to anyone.
DAL's and all the others being very different than AA's, creditors were in favor of a US/DAL however, DAL's BOD voted against it.
Rearding AA's union contracts, this time AA must prove they need what they are assking before unlike normal nego.
Sean Lane the BK Judge, is very dilibrate, want's all the fact's and doens't like to be rushed and as most know he is new and this is his first airline and big case.
WT, interesting take..
DL takes all the AA slots at JFK, up-gauges current 777/A330 flying to newly acquired 747-8's or A380's, the current 767 flying gets 777's and A330's.. The 757 flying becomes 767 while the 757's get re-deployed domestically. The re-tuned, re-timed, combined NYC-ATL-MIA hubs obliterate LCC in about 9 months.
I like it!
DL takes all the AA slots at JFK, up-gauges current 777/A330 flying to newly acquired 747-8's or A380's, the current 767 flying gets 777's and A330's.. The 757 flying becomes 767 while the 757's get re-deployed domestically. The re-tuned, re-timed, combined NYC-ATL-MIA hubs obliterate LCC in about 9 months.
I like it!
strikeforce
Veteran
- Jan 18, 2011
- 1,224
- 253
I've read it and it really doesn't say much besides that DL MAY have an interest in AMR. That can mean thousands of things. Unless you're an insider and know what DL is considering.....don't spread gossip or fairytales to stir up the pot because you have an interest in seeing the AA employees suffer.
CactUS4Ever
Advanced
- Jul 29, 2009
- 183
- 78
Have NO FEAR when DELTA gives it to you in the Shorts like it did to Pan Am. I remember in 1991 when the Pan Am Employees took it hard and deep. Its less painful if ur prepared. You are not ready but I will help prepare you.
WT, interesting take..
DL takes all the AA slots at JFK, up-gauges current 777/A330 flying to newly acquired 747-8's or A380's, the current 767 flying gets 777's and A330's.. The 757 flying becomes 767 while the 757's get re-deployed domestically. The re-tuned, re-timed, combined NYC-ATL-MIA hubs obliterate LCC in about 9 months.
I like it!
You're gonna really like it when DL pulls out its sharpest Thanksgiving special Shun carving knife and slices you right out of a job. With no cranberry sauce. You don't know what's gonna happen with your BK filing.
eolesen
Veteran
- Jul 23, 2003
- 15,959
- 9,374
WT, interesting take..
DL takes all the AA slots at JFK, up-gauges current 777/A330 flying to newly acquired 747-8's or A380's, the current 767 flying gets 777's and A330's.. The 757 flying becomes 767 while the 757's get re-deployed domestically. The re-tuned, re-timed, combined NYC-ATL-MIA hubs obliterate LCC in about 9 months.
I like it!
Sorry, but despite the cheerleader's exuberance, that's a pipe dream.
Despite past merger approvals, none approached more than a 25% total market share.
Realistically, there's no scenario I can see where the DOJ would allow a single company to obtain 35% total market share thru an acquisition. They can't stop organic growth, but they can't allow a merger like that and still be in compliance with anti-trust mandates. Otherwise, the Feds could have forced a Chrysler/GM merger after it took control of both under Obama.
Fortunately, it may not take the DOJ alone. DOT CAN'T block a merger, but they can revoke international route authorities assigned to AA, which may dilute some of the appeal for an airline DL's size. It also could exacerbate the situation because DL could still proceed and would be justified in taking more of a chainsaw to AA international operations.
The AT&T/TMobile deal is just one example where the FCC held their ground so the DOJ didn't have to step in. They also did so with Echostar/DirectTV and Sprint-MCI Worldcom.
strikeforce
Veteran
- Jan 18, 2011
- 1,224
- 253
No fear, buddy! Been there done that......took it in the shorts for nine years. The only thing you'll prepared is to get muted by all the posters on this forum if your non-sense continues. You just made the ignore list buddy!!!!! :angry:
h34r:
chris perry
Veteran
- Sep 17, 2008
- 544
- 118
TPG has the money to take AA private if they so desired,Delta, and US Air are small potatoes compared to TPG...
CactUS4Ever
Advanced
- Jul 29, 2009
- 183
- 78
TPG also has the power to buy and break AA up and sell off the pieces.Decisions Decisions..there is no good for the employees that can come out of this when you file bankruptcy. Creditors will be the only ones that are going to be taken care of. employees get the scraps. It sucks but it's easier when you accept it. I been through it twice at TWA. There will be layoffs there will be pay cuts. This is beyond any employees control just enjoy the ride
