AMR chief says...

diamondcutter

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Apr 11, 2007
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(Reuters) - AMR Corp (AAMRQ.PK), the bankrupt parent of American Airlines, is in the middle of reviewing strategic options that include a merger and will likely make a decision with weeks, according to an interview with the company's chief executive, which was published on the Financial Times' website on Sunday.

"It's probably even a matter of weeks," the Financial Times cited AMR CEO Tom Horton as saying on the question of when a decision on a merger would come. "We're in the middle of that right now."

The third-largest U.S. carrier has begun to review strategic alternatives, including a merger with US Airways Group Inc (LCC.N), to determine whether merging with a rival will generate more in recoveries for American's creditors than going it alone.

AMR told its staff last month it had sent a non-disclosure agreement to US Airways for its review of a possible merger and that it had also dispatched similar agreements to other potential merger parties.

AMR filed for bankruptcy in November 2011, citing untenable labor costs. It won court approval last month to extend through December 28 its exclusive right to present a plan to emerge from bankruptcy.

"It may be an attractive option under the right circumstances," the Financial Times quoted Horton as saying on the possibility of merging with US Airways. "Our view (earlier this year) was not that that combination was unwise. It was that that was not the right time to discuss it."

Horton added that there were potentially meaningful revenue synergies from a combination with US Airways, but stressed that other combinations would be considered and that remaining independent was also an option, according to the interview.

The AMR CEO was clear that after any merger, his airline would remain part of oneworld, the airline code-sharing alliance centered on International Airlines Group (ICAG.L), the parent of British Airways. US Airways is a member of Star Alliance, led by United Airlines (UAL.N) and Deutsche Lufthansa AG (LHAG.DE).

IAG said on Sunday it may consider taking a stake in American Airlines if American welcomed such a move.

(Reporting by Greg Roumeliotis in New York, Editing by Gary Crosse)
 
This must be weeks old because the stock symbol lost the .PK about a month ago. It is now just AAMRQ.
 
This must be weeks old because the stock symbol lost the .PK about a month ago. It is now just AAMRQ.
Probably just a technicality...But go to Yahoo finance under the symbol and there are several news sources with short articles on it...Apparently it happened over the weekend.

Keep in mind, it may not be US at all....

Funny how this tidbit emerged soon AFTER our vote ensuring the TWU is 100% with agreements.
 
Probably just a technicality...But go to Yahoo finance under the symbol and there are several news sources with short articles on it...Apparently it happened over the weekend.

Keep in mind, it may not be US at all....

Funny how this tidbit emerged soon AFTER our vote ensuring the TWU is 100% with agreements.

I didn't believe the US/AA combo crap to begin with.

Old articles I've read referred to Arpey, Parker, and Horton as the "Three Amigos" - they seem to have been the best of buds when all three worked at AA. That said, it's not out of the question one would help the other in creating a ruse (as I believe they have) for the mechanics' "benefit".

US hasn't even gotten their own problems settled yet from their America West "merger". Parker has his hands full with that and certainly doesn't need another problem re: labor to deal with.

My bet was and still is on BA being a buyer. Willie wants a chunk of the USA so bad he can taste it.
 
Once again, a union seniority dispute among the pilots isn't keeping Parkers hands full. Other than the pilots and fa's, the rest of the workgroups are and have been merged for years.
Willie will get his biggest chunk of the US with US...
 
If a merger/acquisition with ANY other company is mere weeks away then a NO vote will not kill the deal.
 
If a merger/acquisition with ANY other company is mere weeks away then a NO vote will not kill the deal.

Then again a NO MERGER decison could be made thanks to TWU 100% agrerements and soon to be pilot/fa abrogation of contracts.

And before the response come in about AA needing to have consenual agreements to exit BK, can someone please show where in the bankruptcy code does it say that...I've requested in another thread to no avail.
 
If a merger/acquisition with ANY other company is mere weeks away then a NO vote will not kill the deal.

It's not the merger that's weeks away, it's the announcement of a merger, or the announcement that no merger will happend.
 
Then again a NO MERGER decison could be made thanks to TWU 100% agrerements and soon to be pilot/fa abrogation of contracts.

And before the response come in about AA needing to have consenual agreements to exit BK, can someone please show where in the bankruptcy code does it say that...I've requested in another thread to no avail.
That is because there is NO requirement to have consensual deals, that is why the abrogation process exists, and the company, and the creditors prefer a deal, but it is not required by law.
 
That is because there is NO requirement to have consensual deals, that is why the abrogation process exists, and the company, and the creditors prefer a deal, but it is not required by law.

I know, 700UW, you're preaching to the choir here.
My post was asking that all those who keep repeating that there be consensual deals to exit BK to please show where in the BK code does it say that.
I haven't found it. therefore doesn't exist.
 
I know, 700UW, you're preaching to the choir here.
My post was asking that all those who keep repeating that there be consensual deals to exit BK to please show where in the BK code does it say that.
I haven't found it. therefore doesn't exist.
and that is the question that I asked regarding NW who signed an agreement w/ its FAs right before emergence.

A company COULD legally emerge from BK w/ BK imposed contracts but that still doesn't mean that is good for the creditors or the mgmt of the new company. Creditors want to have certainty about costs and the stability of the company and employees want to have some hope that they might not have to live under the contract that was imposed for the next decade - or more.

Given the instability that is created by APA's decision to reject the latest contract, it is very likely that other options will start surfacing. Given that DL just signed a new agreement w/ its pilots that could raise pilot AA pay rates 25% or more compared to existing AA rates and a whole lot more compared to US, it isn't a given that AA/US will be supported by labor or creditors who could see other options providing better compensation within business plans that are much more capable of supporting AA employee pay expectations. Rumors that UA's AIP is comparable to DL's only add fuel to the fire that there are better deals out there for employees.
 
Isn't the point moot here should Parker be successful? If he goes with his offers to AA's unions, what value does any pending issues currently with Horton & co have?
 

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