interesting article on aa/usair corporate culture
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snapthis
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700UW, are you paying attention?
Q. Which company is the buyer in this deal – AMR or US Airways?
A. The transaction is structured as a merger, not as the purchase by one company of the other. AMR and US Airways have an agreement to combine both companies. AMR Corporation, American’s current parent, will be the parent holding company for the combined American and US Airways. We expect that immediately after the merger, AMR Corporation will change its name to American Airlines Group Inc.
- See more at: http://aviationblog.dallasnews.com/2013/03/some-more-qs-and-as-about-the-us-airways-american-airlines-merger.html/#sthash.S5xlSk3k.dpuf
jimntx
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"In an email to me, Underwood added: “I think you can make the case for the new AA to ultimately end up as a middle/lower end performer in the future airline business.”"
Does anyone beside me think that Prof. Underwood is being just a little too Pollyanna optimistic?
Middle/lower end performer is where this combination starts.
Does anyone beside me think that Prof. Underwood is being just a little too Pollyanna optimistic?
Middle/lower end performer is where this combination starts.700 wants to believe so badly that us bought AA but we all know what really happened. It's like some other people on here that claim us bought a bankrupt airline- lmao.
MCI transplant
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amt----- Is AA in bankrupcy or not?
jimntx
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Technically, yes they are. But, that is not to say that they are financially bankrupt...just morally and ethically. The bankruptcy courts of the United States might be more accurately called the "screw the employees and the creditors then award bonusses" courts in this day and age.
We're they as bankrupt as twa, ual or us absolutely not. The last time I checked they didn't need DIP. Are they in bankruptcy yes but only to break union contracts and lease obligations.
eolesen
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To add to that, AMR is paying creditors 100% on their claims.
Can't come even close to saying that about the previous bankruptcy cases -- if I recall, US's bankruptcies saw creditors receiving less than 20% for their claims.
DL proposed paying creditors 80% when US was trying to take them over (US was only going to pay 50%). Perhaps WT knows the exact amount, since that's a DL stat.
Can't come even close to saying that about the previous bankruptcy cases -- if I recall, US's bankruptcies saw creditors receiving less than 20% for their claims.
DL proposed paying creditors 80% when US was trying to take them over (US was only going to pay 50%). Perhaps WT knows the exact amount, since that's a DL stat.
"In an email to me, Underwood added: “I think you can make the case for the new AA to ultimately end up as a middle/lower end performer in the future airline business.”"
Does anyone beside me think that Prof. Underwood is being just a little too Pollyanna optimistic?
http://www.marketwat...5?siteid=yhoof2
hell according to this article we are on our way to the top!
heck we are at #4 worst reputation!
WorldTraveler
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that number is probably pretty close to accurate - but "paying claims" often involves issuing stock in the new company. So what was a debt is converted into stock.... in the airline industry that is not a terribly appealing prospect.
... and since BK is a process to convert debt to equity under the supervision of the courts - for most parties except for labor, it further validates Jim's statement above that the real advantage of AA in BK has been to cut labor rates... only to then PARTIALLY raise them as part of getting labor's approval for the merger.
BTW, thank you for the gracious inclusion in the conversation. 🙂
Always remember, the Feurhur may be gone, but the gang is still in charge..
Everyone except the Unions that is. Our 4.8% stake is costing us $2.2 billion. If the company comes out worth $10 Billion our $2.2 Billion will only net us $480 million before taxes. Whats even worse is thanks to the 2003 Concessions we went into BK with our labor already seriously under valued, in other words we got a compounded screwing. I guess you could say we already got "DP'd".
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