chris perry
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News source reporting Emirates looking to invest 2 B...
American looking at foreign investment? Emirates?
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anyone could invest and AA has valuable assets.. but it still comes down to the fact that AA's costs have to be brought in line w/ competitors.
EK could invest in AMR but they would control the company and dictate what kinds of cost cuts need to be made... even considering the limits on foreign investments in US airlines, you tell me how comfortable you are having a foreign company dictate how AA is run.
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AA is a valuable enough franchise that someone will put the money in to obtain the assets and markets that AA possesses - but they will do so on the terms they think are necessary to run the business.
EK could invest in AMR but they would control the company and dictate what kinds of cost cuts need to be made... even considering the limits on foreign investments in US airlines, you tell me how comfortable you are having a foreign company dictate how AA is run.
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AA is a valuable enough franchise that someone will put the money in to obtain the assets and markets that AA possesses - but they will do so on the terms they think are necessary to run the business.
whatkindoffreshhell
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EK would be smart to buy enough of AA just short of the federal government limit (I think around 24.9%) but I'm sure Congress would wail.
AA mgmt would also have to consider how such an EK investment would affect their bigger-picture goal of working with BA & oneworld.
EK's CEO Tim Clark is smart, aggressive and has the financial backing of Dubai. Plus they're going to have to identify routes for some of those 50 new A380 planes they have on order.
I think this would be a wise deal. However Congress will howl and the unions will block it.
Do it anyway.
Uncle Bob would.
AA mgmt would also have to consider how such an EK investment would affect their bigger-picture goal of working with BA & oneworld.
EK's CEO Tim Clark is smart, aggressive and has the financial backing of Dubai. Plus they're going to have to identify routes for some of those 50 new A380 planes they have on order.
I think this would be a wise deal. However Congress will howl and the unions will block it.
Do it anyway.
Uncle Bob would.
chris perry
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FrequentFlierCA
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For this to happen I think there would have to be a "grand bargain" where EK joined Oneworld. The total foreign ownership allowed is 49.9%; the 25% cap applies to voting shares (I say that not knowing the specifics of the types of shares AMR has outstanding).
In any event, this would certainly make for some interesting changes to the industry...
In any event, this would certainly make for some interesting changes to the industry...
eolesen
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You have to understand the attitudes and culture at Emirates... According to colleagues from Dubai, there was a mindset a few years back whereby they wanted to build all of their own IT, etc. so that they didn't have to worry about the next Gulf war or being declared part of an "evil empire" and having services shut off.
If they can't go it alone, they don't do it.
As I said last week, nothing would surprise me, but I don't see them changing their business plan anytime soon. If they invested in AMR, they would be expecting feed which would then be competing with JL, MH and CX on the Pacific, and BA, RJ, AB, and IB on the Atlantic.
If they can't go it alone, they don't do it.
As I said last week, nothing would surprise me, but I don't see them changing their business plan anytime soon. If they invested in AMR, they would be expecting feed which would then be competing with JL, MH and CX on the Pacific, and BA, RJ, AB, and IB on the Atlantic.
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