AMR considers 5 airlines for merger

[FWAAA]

I'm not saying that it will, and for the record I would just soon this abortion of a merger never take place.
My orginal reply was to luvthenine's assertion that Wall St would back Horton and I don;t think that is true.

I think that AA and US will probably combine, but not because of any magical fund-raising ability of Doug Parker. As for the CEO when it all shakes out? That's not up to Doug Parker or Tom Horton - that will be whomever the AA creditors and the financiers want to be in charge.

 

[wings396]

Either way, I can't see Horton sticking around given the hatred that all of the employee groups have towards him. They saw to it that Carty was ousted, and his actions were small in comparision to Horton. It is now a well known fact that he only wants to retain contol of AA in order to line his pockets along with his top crew when the dust settles. At least Parker actually wants to run the combined airline, and is not looking to bail out. Sure he stands to make out very well, but that is and would be the case with any CEO. How many have we seen leave with their golden parachute, while the employess suffer thru wage and benefit reductions.
I do find it laughable that any company could enter BK with Billions of $$$ on hand. Hell, If I didn't have to pay my bills I would be able to bolster my bank account too.

 

[FWAAA]

Either way, I can't see Horton sticking around given the hatred that all of the employee groups have towards him. They saw to it that Carty was ousted, and his actions were small in comparision to Horton.

Carty's deceptions were far different from anything Horton has done.

It is now a well known fact that he only wants to retain contol of AA in order to line his pockets along with his top crew when the dust settles. At least Parker actually wants to run the combined airline, and is not looking to bail out. Sure he stands to make out very well, but that is and would be the case with any CEO. How many have we seen leave with their golden parachute, while the employess suffer thru wage and benefit reductions.

If it's a "well known fact" then I assume you can provide a link or two that conclusively proves your first sentence. I'm thinking something along the lines of quotes of Horton saying that he's in it to get rich and doesn't want to stay at AA. What evidence is out there that Horton does not want to run the combined airline? (and quoting yourself doesn't count)

Horton has actually replaced all of Arpey's top management in the last seven months.

I do find it laughable that any company could enter BK with Billions of $$$ on hand. Hell, If I didn't have to pay my bills I would be able to bolster my bank account too.

Chapter 11 has nothing to do with how much cash you have - it has to do with renegotiating contracts with employees and others and shedding debt, and AA has done both. AA had the highest costs in the industry and is on target to lower those costs substantially. Stupid management waits until they're almost out of cash before filing Ch 11. You do that and there's a risk of liquidation. File with $4 billion of unrestricted cash, and survival of Ch 11 is a near-certainty. UA spent years in Ch 11 as it tried to get exit financing (recall its attempts to obtain a loan backed by the ATSB?) and its survival was in doubt for a while. AA won't have to seek any additional exit financing.

 

[Phoenix]

That is why it won't happen. Nobody will let Parker get a chance to destroy this deal. Wall Street is backing Horton because they know they will get paid. Parker can't deliver a pizza let alone deliver an airline deal.

Checkout the wall street journal front page... Right next to the article about Horton looking into mergers... There is an article about CEO shuffling right after a merger.. It seems the CEO of the smaller company in the merge originally took the helm but the new BOD quickly canned him and reinstated the CEO of the bigger company..

Foreshadowing

 

[FWAAA]

Doug Parker: "I haven't heard from American yet."

http://travel.usatoday.com/flights/post/2012/07/us-airways-doug-parker-american-airlines/801217/1

Parker is a very desperate, and very impatient young man. As Swelbar recently wrote, Parker is acting like a teenager with their first credit card. Relax, Doug. If the US proposal is truly the best alternative, then AA will be merged with US. But stop acting like an impatient teenager who's just a little too impatient to get into his girlfriend's pants. Just some friendly advice, Doug - start acting like a grownup CEO and less like a 16 year old.

Parker told USA TODAY that he's been frustrated by US Airways' inability to talk to the bankrupt airline or its creditors about merging the third and fourth largest U.S. airlines into one.

Frustrated by the slow going in getting US Airways' proposal in front of AA's creditors, Parker has increasingly gone public with his company's merger push – including at today's meeting with USA TODAY's Editorial Board.

Parker said he wants only "a fair chance to put our proposal up against the American stand-alone plan and let the people who own that company – the creditors of the company – decide which one they prefer."

 

[signals]

no matter what you or I think about Parker, I have always heard he can come up with money if nothing else, this shows he has support on Wall street.

I am no fan of Parkers myself, but I think you are letting your feelings on Parker and the whole east/west pilot mess cloud your judgement here.

Funny, I say practically the same thing and you are very uncivil to me. Oh that's right he's a pilot and I drive a lav truck

Better put me on ignore if you don't want to hear my ignorance.

Now to comment on your quote:

I might be totally wrong and I know that BK's are different, but it was my observation that when WN went after F9, they outbid Republic yet the judge gave F9 to Republic. So I don't think that the decision is going to be based on soley money.

Spare me the quote "I might be totally wrong..." because I'm not 😛

 

[signals]

"A source familiar with the situation said AMR sees itself as an acquirer in potential mergers "

good luck with that part as long as you're in BK

that must be Horton's fantasy to get his mega pay off

Actually that may be a hint towards F9. Isn't F9 facing another BK, since WN is on the attack? Yeah there are other reasons, but WN went for the throat.

Has anyone noticed that at the beginning of BK, AA had $4B, and now it has $5B??? Of course there is nothing to see here!

 

[FWAAA]

I might be totally wrong and I know that BK's are different, but it was my observation that when WN went after F9, they outbid Republic yet the judge gave F9 to Republic. So I don't think that the decision is going to be based on soley money.

Spare me the quote "I might be totally wrong..." because I'm not 😛

The Southwest bid (which was higher) was conditional on the WN pilots reaching agreement with the Frontier pilots. The WN pilots failed to reach agreement, and thus the WN bid was void. Sorta like bidding on a house but making your offer conditional on selling your own house. Someone else may win the house if their offer isn't conditional on selling their house.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a74C6aCSa0Qc

http://www.bizjournals.com/denver/stories/2009/08/10/daily76.html?page=all

More money generally means you're gonna win unless you condition your bid on third parties coming to agreements.

 

[signals]

That is why it won't happen. Nobody will let Parker get a chance to destroy this deal. Wall Street is backing Horton because they know they will get paid. Parker can't deliver a pizza let alone deliver an airline deal.

Now that's rather harsh on Parker, you #@$%&*(! Oh wait, your not signals. Never mind!

 

[signals]

You have your head so far up your ass it's not even funny .. WTF are you talking about ? Parker will and is getting all the financing he needs . I swear some of you. Are so unbelievable with the crap you type up .

I got to hand it to you at least your consistant. +1

 

[signals]

That oft-repeated truism is really not as special as it sounds; every airline exec has shown an ability to raise money. Horton and Arpey had no trouble borrowing several billion dollars in the past four years as they built up the several billion dollar horde of cash that meant AA did not have to seek DIP financing. I realize that Parker's ways with Wall St seem to have quite a mystique, but lots of people don't credit Parker with raising the cash necessary to merge US and HP. They claim that others arranged the financing and handed it to Parker. Parker's money-raising skills didn't seal a deal with DL or UA or CO or any other airline he courted. If he's so wildly successful at shaking the money trees, why hasn't that skill landed him a better airline?

I'm neither East nor West, so no hatred toward him. Nor am I a Parker fan.

Good thing I didn't say that. 🙂

 

[signals]

Doug Parker: "I haven't heard from American yet."

http://travel.usatod...rlines/801217/1

Parker is a very desperate, and very impatient young man. As Swelbar recently wrote, Parker is acting like a teenager with their first credit card. Relax, Doug. If the US proposal is truly the best alternative, then AA will be merged with US. But stop acting like an impatient teenager who's just a little too impatient to get into his girlfriend's pants. Just some friendly advice, Doug - start acting like a grownup CEO and less like a 16 year old.

Want to here a wild outsider's thought? I can't believe that a CEO that runs a Fortune 500 company will continue to stick his neck out with all these merger attempts and fail. Unless it's just a way to temporarily raise your stock to keep shareholders happy, it makes no sense that he continues to look like a failure. Could these merger attempts be a smokescreen for something else?

 

[signals]

The Southwest bid (which was higher) was conditional on the WN pilots reaching agreement with the Frontier pilots. The WN pilots failed to reach agreement, and thus the WN bid was void. Sorta like bidding on a house but making your offer conditional on selling your own house. Someone else may win the house if their offer isn't conditional on selling their house.

http://www.bloomberg...id=a74C6aCSa0Qc

http://www.bizjourna...6.html?page=all

More money generally means you're gonna win unless you condition your bid on third parties coming to agreements.

Thank You!

 

[MUTATIS MUTANDIS]

no matter what you or I think about Parker, I have always heard he can come up with money if nothing else, this shows he has support on Wall street.

I am no fan of Parkers myself, but I think you are letting your feelings on Parker and the whole east/west pilot mess cloud your judgement here.

Actually BRUCE LAKEFIELD came together for the money for AWA, USAIR deal.

 

[wings396]

Oh, not swaybar again.........