US-AA Merger Articles (Merged Topics)
- Thread starter USA320Pilot
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APA president: US Airways plans to submit an alternative reorganization plan
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Unsecured creditors committee support for American rejecting union contracts does not hinder US Airways possible merger bid, APFA says
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Analyst pegs American/US Airways merger possibility at 90 percent
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Executive defends American Airlines’ plans for revenue, growth
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U.S. bankruptcy judge says he will decide based on "what's in front of me"
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Support grows for American Airlines merger with US Airways
One of Dallas' leading politicians is speaking out in favor of a merger between American Airlines and US Airways
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Unsecured creditors committee support for American rejecting union contracts does not hinder US Airways possible merger bid, APFA says
Click here to read the story.
Analyst pegs American/US Airways merger possibility at 90 percent
Click here to read the story.
Executive defends American Airlines’ plans for revenue, growth
Click here to read the story.
U.S. bankruptcy judge says he will decide based on "what's in front of me"
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Support grows for American Airlines merger with US Airways
One of Dallas' leading politicians is speaking out in favor of a merger between American Airlines and US Airways
Click here to read the story.
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- #3
US Airways says merged company would generate significant cost savings
Says wouldn't shrink the combined airline by reducing or eliminating facility space, management headcount, by combining IT systems. Estimates post-merger synergies over $1.2B per year.
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US Airways says confident merged value higher than standalone AMR
Says goal is to get union support, then creditor support, then a "cooperative and consensual process with AMR's board and management team."
Sees "tremendous" amount of value in merged US Air/AMR, "enormous" revenue synergy.
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Boeing CEO backs American Airlines on delaying merger talk until it exits bankruptcy court
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US Airways aims to convince other American Airlines creditors now that unions support merger
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Says wouldn't shrink the combined airline by reducing or eliminating facility space, management headcount, by combining IT systems. Estimates post-merger synergies over $1.2B per year.
Click here to read the story.
US Airways says confident merged value higher than standalone AMR
Says goal is to get union support, then creditor support, then a "cooperative and consensual process with AMR's board and management team."
Sees "tremendous" amount of value in merged US Air/AMR, "enormous" revenue synergy.
Click here to read the story.
Boeing CEO backs American Airlines on delaying merger talk until it exits bankruptcy court
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US Airways aims to convince other American Airlines creditors now that unions support merger
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Interesting. AA already has lower mainline unit costs (ex-fuel and ex-labor) than US and obviously, creditors want to see AA reduce its labor costs and non-labor costs in line with UA and DL, AA's chief competitors.
Unlike the three AA labor unions and many AA employees, creditors like Boeing look at the actual numbers and the numbers that are likely to occur in a restructuring and don't let emotional hatred for currrent management influence their decisions.
cltrat
Veteran
- Aug 29, 2007
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Do you suppose the Boeing CEO's thoughts on the numbers are influenced by US being an AB buyer? You seemed to have taken AAviator's place as blowing the stand alone horn.If you are an AA employee and that is a big if you seem to in the minority from what I have seen.So far you at least have not been arrogant about it like AAaviator I find his recent silence quite laughable.
Jimmy Neutron
Veteran
- Dec 2, 2005
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AMR Will Likely Consider Merger in Bankruptcy, Adviser Says
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/04/25/bloomberg_articlesM31N8W6K50Z001-M31YL.DTL
US Airways lobbies American’s creditors
http://www.ft.com/cms/s/0/f47749e0-8f15-11e1-aa12-00144feab49a.html#axzz1t5sCruqz
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/04/25/bloomberg_articlesM31N8W6K50Z001-M31YL.DTL
US Airways lobbies American’s creditors
http://www.ft.com/cms/s/0/f47749e0-8f15-11e1-aa12-00144feab49a.html#axzz1t5sCruqz
- Thread Starter
- #9
US Airways Pushes Merger - Carrier Cites Synergies in Talks With American Air Creditors
Separately on Wednesday, Willie Walsh, CEO of British Airways parent International Consolidated Airlines Group said. IAG and British Airways intended to remain on the sidelines of the merger battle brewing with American. British Airways and IAG's other carrier, Spain's Iberia, have deep ties with American through their Oneworld global airline alliance. "We intend to be passive but ready to act if, and when, something happens," Mr. Walsh said in an interview in Barcelona. "The process could play out in many different ways, and we want to be ready to participate."
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American will probably consider a merger while in bankruptcy, investment banker testifies
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US Airways lobbies American’s creditors
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AMR Will Likely Consider Merger in Bankruptcy, Adviser Says
AMR’s unsecured debt has traded up sharply over the year to date, while shares in US Airways have jumped more than 80 per cent based in part on the merger speculation. In court, David Resnick, a banker at Rothschild who is advising AMR, indicated that the company would probably consider a merger at some point because of its duty to get the best deal for stakeholders.
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American lays out bleak finances in bid to cancel labor contracts
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UPDATE 2-US Air says AMR deal would yield $1.2 bln a year
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US Airways' Conference Call Transcript: April 25, 2012
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US Airways: We'd Share Merger Synergies With Workers
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Separately on Wednesday, Willie Walsh, CEO of British Airways parent International Consolidated Airlines Group said. IAG and British Airways intended to remain on the sidelines of the merger battle brewing with American. British Airways and IAG's other carrier, Spain's Iberia, have deep ties with American through their Oneworld global airline alliance. "We intend to be passive but ready to act if, and when, something happens," Mr. Walsh said in an interview in Barcelona. "The process could play out in many different ways, and we want to be ready to participate."
Click here to read the story.
American will probably consider a merger while in bankruptcy, investment banker testifies
Click here to read the story.
US Airways lobbies American’s creditors
Click here to read the story.
AMR Will Likely Consider Merger in Bankruptcy, Adviser Says
AMR’s unsecured debt has traded up sharply over the year to date, while shares in US Airways have jumped more than 80 per cent based in part on the merger speculation. In court, David Resnick, a banker at Rothschild who is advising AMR, indicated that the company would probably consider a merger at some point because of its duty to get the best deal for stakeholders.
Click here to read the story.
American lays out bleak finances in bid to cancel labor contracts
Click here to read the story.
UPDATE 2-US Air says AMR deal would yield $1.2 bln a year
Click here to read the story.
US Airways' Conference Call Transcript: April 25, 2012
Click here to read the story.
US Airways: We'd Share Merger Synergies With Workers
Click here to read the story.
- Thread Starter
- #11
US Airways President Scott Kirby's Analyst Conference Call Merger Comments: April 25, 2012
First off, I think every airline analyst and probably everyone listening to this call appreciates that a merger of US Airways and American Airlines would create enormous revenue synergies. Like United Continental, Delta-Northwest, US Airways AMR would have a network that could generate much more revenue than the 2 airlines can independently. We can also generate significant cost savings, even though we wouldn't shrink the combined airline by reducing or eliminating redundant facility space, management headcount, by combining IT systems and by much improved purchasing power.
For perspective, Delta-Northwest generated $2 billion in synergies, which was 6.3% of their combined revenues. Continental-United generated $1.1 billion in synergies, 3.9% of the combined revenues. And US Airways-America West generated $680 million in synergies or 6.5% of our combined revenues.
As to the agreements we've signed with AMR's union, I could describe them at a high level. Prior to bankruptcy, AMR said that their labor costs were $800 million over industry standards. In bankruptcy, however, American is asked for concessionary contract of $1.25 billion, meaning AMR's asked and labor went beyond industry average. And for what it worth -- for what it's worth, it appears AMR's $800 million disadvantage to the industry was basically all pensions and productivity.
We agree with all 3 unions that the merged American needs to have contracts that have neither a competitive advantage nor disadvantage to Delta and United. This merger creates an airline that can compete effectively against United and Delta. Since the new American will have revenue-generating capabilities like United and Delta, it should also have labor costs like United and Delta.
The leadership at all 3 unions recognize the need to be competitive and agreed with US Airways to freeze the pensions and the productivity enhancements that get AMR to a competitive position with United and Delta. So the synergies created by our merger allow us to set the pay of USA -- US Airways and AMR employees, comparable to the pay at United and Delta. The result is better contracts than American can pay independently and much better than they are attempting to impose on their employees to the 1113 process.
But those increases in compensation do not come close to negating the tremendous benefit and synergies created by merging US Airways and American. Indeed, we estimate that the synergies created by US-AMR merger, net of the labor de-synergies, when compared against AMR's standalone 11 13 plan, conservatively are estimated at over $1.2 billion per year. This means significantly greater recoveries for AMR's creditors and US shareholders are available. Also, the impact to labor and jobs is far less draconian, because some of the synergies have been appropriately shared with labor to better pay and to fewer job cuts.
The union leadership and employees of AMR have shown great leadership in getting us to this point. Importantly, they recognize early on that the goal is to build a company that could succeed, compete and restore American to its rightful place as a preeminent airline in the country. They recognize that labor cost is needed to be competitive to make that vision a reality, but we also recognize that it wasn't necessary to go beyond industry standard.
We worked together as partners with ATA, APFA and the TWU to forge a merger that will restore American to its preeminent position in the industry, do so with a competitive cost structure and with a route network that's built to compete and win.
First off, I think every airline analyst and probably everyone listening to this call appreciates that a merger of US Airways and American Airlines would create enormous revenue synergies. Like United Continental, Delta-Northwest, US Airways AMR would have a network that could generate much more revenue than the 2 airlines can independently. We can also generate significant cost savings, even though we wouldn't shrink the combined airline by reducing or eliminating redundant facility space, management headcount, by combining IT systems and by much improved purchasing power.
For perspective, Delta-Northwest generated $2 billion in synergies, which was 6.3% of their combined revenues. Continental-United generated $1.1 billion in synergies, 3.9% of the combined revenues. And US Airways-America West generated $680 million in synergies or 6.5% of our combined revenues.
As to the agreements we've signed with AMR's union, I could describe them at a high level. Prior to bankruptcy, AMR said that their labor costs were $800 million over industry standards. In bankruptcy, however, American is asked for concessionary contract of $1.25 billion, meaning AMR's asked and labor went beyond industry average. And for what it worth -- for what it's worth, it appears AMR's $800 million disadvantage to the industry was basically all pensions and productivity.
We agree with all 3 unions that the merged American needs to have contracts that have neither a competitive advantage nor disadvantage to Delta and United. This merger creates an airline that can compete effectively against United and Delta. Since the new American will have revenue-generating capabilities like United and Delta, it should also have labor costs like United and Delta.
The leadership at all 3 unions recognize the need to be competitive and agreed with US Airways to freeze the pensions and the productivity enhancements that get AMR to a competitive position with United and Delta. So the synergies created by our merger allow us to set the pay of USA -- US Airways and AMR employees, comparable to the pay at United and Delta. The result is better contracts than American can pay independently and much better than they are attempting to impose on their employees to the 1113 process.
But those increases in compensation do not come close to negating the tremendous benefit and synergies created by merging US Airways and American. Indeed, we estimate that the synergies created by US-AMR merger, net of the labor de-synergies, when compared against AMR's standalone 11 13 plan, conservatively are estimated at over $1.2 billion per year. This means significantly greater recoveries for AMR's creditors and US shareholders are available. Also, the impact to labor and jobs is far less draconian, because some of the synergies have been appropriately shared with labor to better pay and to fewer job cuts.
The union leadership and employees of AMR have shown great leadership in getting us to this point. Importantly, they recognize early on that the goal is to build a company that could succeed, compete and restore American to its rightful place as a preeminent airline in the country. They recognize that labor cost is needed to be competitive to make that vision a reality, but we also recognize that it wasn't necessary to go beyond industry standard.
We worked together as partners with ATA, APFA and the TWU to forge a merger that will restore American to its preeminent position in the industry, do so with a competitive cost structure and with a route network that's built to compete and win.
- Thread Starter
- #12
There are 9 members of AMR's Unsecured Creditors Committee (UCC), which includes:
1. APA
2. APFA
3. TWU
4. Boeing
5. PBGC
6. Hewlett Packard (provides both US Airways and AMR PCs and either Sabre or Shares software)
7. Wilmington Trust (bondholder)
8. Manufacturers & Traders Trust Co (Bondholder)
9. Bank of New York Mellon Corp. (Bondholder)
According to Bloomberg, conversations between US Airways and bondholders began as early as April 19, the day before US Airways announced the new labor accords with Americans unions.
In my opinion, both HP and Boeing could care less iif the merger proceeds with the excpetion they want their products delivered to either American or the new American. I believe Boeing CEO Jim McNerney would not have commented on AMR's stand-alone versus merger opportunity if he had not been asked the question; however, how else could he answer? AMR is his customer and US Airways is not his customer.
If the other 8 UCC members support a merger I suspect McNerney will too.
1. APA
2. APFA
3. TWU
4. Boeing
5. PBGC
6. Hewlett Packard (provides both US Airways and AMR PCs and either Sabre or Shares software)
7. Wilmington Trust (bondholder)
8. Manufacturers & Traders Trust Co (Bondholder)
9. Bank of New York Mellon Corp. (Bondholder)
According to Bloomberg, conversations between US Airways and bondholders began as early as April 19, the day before US Airways announced the new labor accords with Americans unions.
In my opinion, both HP and Boeing could care less iif the merger proceeds with the excpetion they want their products delivered to either American or the new American. I believe Boeing CEO Jim McNerney would not have commented on AMR's stand-alone versus merger opportunity if he had not been asked the question; however, how else could he answer? AMR is his customer and US Airways is not his customer.
If the other 8 UCC members support a merger I suspect McNerney will too.
- Thread Starter
- #13
United Continental CEO : United would be impacted if US Airways left Star Alliance to merge with someone else
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AMR labor needs shifted after bankruptcy: executive
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American Pursued Limp-Along Strategy Before Bankruptcy
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United CEO: A US Airways merger would be good for industry
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AMR labor needs shifted after bankruptcy: executive
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American Pursued Limp-Along Strategy Before Bankruptcy
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United CEO: A US Airways merger would be good for industry
Click here here to read the story.
xUT
Veteran
Now "THAT'S FUNNY"...
United thinks an AA/US Airways merger is good for the industry...
Maybe in the 'next' BK...
B) xUT
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