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)
 
The worm turns! Any oddsmakers in the room?

IMO American is merging, the question to me is "With whom"?
 
The worm turns! Any oddsmakers in the room?

IMO American is merging, the question to me is "With whom"?

I'm guessing Jet Blue. It makes no sense and all it does is add back what AA gave up to them earlier, but based on what I'm reading from all over, that is the only way Horton and his band of merry men can keep their pockets full of cash. Maybe we can pick up some of the flying that they will have to give up in JFK, who knows?

I hope I'm wrong. But sometimes you have to follow the dough.

Driver...
 
Anyone who would willingly set themselves on fire or go into business with Horton & Co. should be institutionalized.
 
Anyone who would willingly set themselves on fire or go into business with Horton & Co. should be institutionalized.
I'd say the same thing about any unions or their members who do deals with Doug Parker & Co. Mandatory drug tests and psych exams should be given to all who think that D Parker is their saviour.
 
I'd say the same thing about any unions or their members who do deals with Doug Parker & Co. Mandatory drug tests and psych exams should be given to all who think that D Parker is their saviour.
As a 26 yr employee of AA......I have watched all CFO's come through Centerpork the past 14 yrs. All while AA has been driven operationally and financially into the ground! Time for a new style of management at AA whether it be Parker or whoever... there has to be new faces at the top of AA!
 
If you don't like CFO's running the show you won't like Parker. From being in AA's finance bullpen with Horton to being HP's CFO before being named CEO just days prior to 911, Parker is the eiptome of spreadsheet management and his sidekick "Scooter" Kirby is cut from the same financial background cloth.

Jim
 
I would have to say Parker and by the way all the AA pilots I talk to believe Parker wants to run an airline where as Horton has the stigma of past management. Of course I have always said ever since Horton returned from ATT that his last act at AA would be to sell us. History does seem to repeat itself.
 
If you don't like CFO's running the show you won't like Parker. From being in AA's finance bullpen with Horton to being HP's CFO before being named CEO just days prior to 911, Parker is the eiptome of spreadsheet management and his sidekick "Scooter" Kirby is cut from the same financial background cloth.

Jim

It's been a while, but I once again can agree with Jim 100%.
 
And who has done a better job of keeping their airline afloat?

The jury is still out on that one - Parker himself says that AWA probably wouldn't still be in existance without the merger with US and despite his "US doesn't need to merge" rhetoric his keen interest in merging indicates that US needs a merger more than AA does. Horton hasn't been CEO long enough yet - less than a year - to make a judgement yet. As someone else said, if AA had had US' labor costs AA wouldn't be in bankruptcy now. Do the AA employees want to work for a company that makes it's profit on the backs of labor, as Parker has done?

Jim
 
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