American Airlines' Response

[enough already]

Crickets chirping........

 

[Hopeful]

Crickets chirping........

Per their 1113 provisions, AA has until at least September to submit its plan. Don't expect anything substantial merger-wise untlil at least then.
Horton has continually stated he would like to emerge independent but is open to a merger AFTER bankruptcy.

So even though Parker has been vocal about his intenions, AA really does not have to say anything until September.

The funny thing is, our contracts will probably be abrogated by mid June. At that point, AA will be able to submit the final plan after achieving the cost cutting goals of ALL employees, union and non union alike. Once AA knows that they have achieved the $billions in savings, they will then be able to offer the creditors a more acceptable deal.

 

[wings396]

I think that we will see things happening before Sept......
For all we know Horton may have been taking to Doug over the weekend, given that his nuts are in a vise and he stands to lose a few bucks if Doug is able to pull off a deal that doesn't include him..
Just my guess....

 

[Hopeful]

I think that we have have things happening before Sept......
For all we know Horton may have been taking to Doug over the weekend, given that his nuts are in a vise and he stands to lose a few bucks if Doug is able to pull off a deal that doesn't include him..
Just my guess....

Yea, of course...If Horton agrees. Otherwise, it's gonna be a long summer.

 

[Kittyhawk]

Could it be that, DP just entered from the back door to work his way around the September exclusivity. He has now taken a giant step by getting labor on board. He can now take this to the creditors, if they sign on, would this not force Horton to follow along, despite his objections. Keeping in mind that the exclusivity clause is still in place, they close out the BK in August or early September. Boom, merger set, no competeing bids. Does this make sense, is this how DP is approaching it?

 

[TWU informer]

The UCC can file a request to change the exclusive period granted.

 

[Hopeful]

The UCC can file a request to change the exclusive period granted.

I wouldn't know if they can or they cannot. The DEBTOR does have time to submit a plan. Somebody more versed in BK law would be best suited to answer that.

 

[TWU informer]

I wouldn't know if they can or they cannot. The DEBTOR does have time to submit a plan. Somebody more versed in BK law would be best suited to answer that.

It was not a question.
It was a statement of fact!
Come down off of your pedestal and read with comprehension.

 

[wings396]

The UCC can file a request to change the exclusive period granted.

And this is exactly what I see happening. Horton and AA may/will present a plan, but it won't be better than what is already on the table from US. They can't match what Parker has offered, mainly because his offer is based on the combination of AA/US and their increased revenue and growth.

 

[TWU informer]

And this is exactly what I see happening. Horton and AA may/will present a plan, but it won't be better than what is already on the table from US. They can't match what Parker has offered, mainly because his offer is based on the combination of AA/US and their increased revenue and growth.

Unless Horton was to come clean with the AA idea really being to rape and pilferage employee pay and benefits, then obtain financing to hostile take over USAir. This scenario has lower cost than the USAir plan.

In other words, both plans involve the merger, just one leaves the employees very screwed, and the other leaves the employees a little less screwed.

In my opinion this is about control, not if there will be a merge of the two or not.

Parker's has labor support, the AA plan would have the Corporate support.

 

[Hopeful]

It was not a question.
It was a statement of fact!
Come down off of your pedestal and read with comprehension.

Calm down. professor...All I said was I didn't know...that's all...just relax.
Anyway, you are correct. The exclusivity period can be nixed if the creditor's committee requests.

Another issue I see with all this merger talk is that the creditor's main concern is their stake and cutting their losses. They might not be too happy with the prospect of the unions being promised things that might otherwise reduce their claims.
So far, all we know is that parker promised AA unions things, but what is their business plan to present to the court?

 

[UPNAWAY]

What is the likelihood that AA decides to play ball with US and not fight it? I think that may happen eventually, but am wondering if they could possible happen sooner rather than later. If so what would be their strategy and key issues?

 

[Hopeful]

What is the likelihood that AA decides to play ball with US and not fight it? I think that may happen eventually, but am wondering if they could possible happen sooner rather than later. If so what would be their strategy and key issues?

If AA decides to play ball with US, then I would expect to see DL and UA get into the auction.....sans the employees.

 

[Kittyhawk]

What is the likelihood that AA decides to play ball with US and not fight it? I think that may happen eventually, but am wondering if they could possible happen sooner rather than later. If so what would be their strategy and key issues?

If the creditors decide to back DP, then Horton would have no choice but to follow along. My question is, would Horton be replaced with an interim CEO, since he as been so vocal against this. He may stay on and be offered a golden parachute on the day that the certificates are merged.

 

[777 / 767 / 757 Love]

Per their 1113 provisions, AA has until at least September to submit its plan. Don't expect anything substantial merger-wise untlil at least then.
Horton has continually stated he would like to emerge independent but is open to a merger AFTER bankruptcy.

So even though Parker has been vocal about his intenions, AA really does not have to say anything until September.

The funny thing is, our contracts will probably be abrogated by mid June. At that point, AA will be able to submit the final plan after achieving the cost cutting goals of ALL employees, union and non union alike. Once AA knows that they have achieved the $billions in savings, they will then be able to offer the creditors a more acceptable deal.

Look for AA to take mone from BA/TPG......look for AA to try and grab JB.......gives them dominance again in NY, something they desperately need. With DFW, NYC, and MIA as dominant positions, then they can worry about organically trying to strengthen things at ORD.

Cheers,
777 / 767 / 757