American Airlines, eyed by US Airways, agrees to study merger while still in bankruptcy
Standard & Poor's, citing a Bloomberg News report that AMR would consider a merger as an alternative to its stand-alone restructuring plan, said the move made it more likely that US Airways will acquire AMR or merge with it. S&P kept a "Buy" rating on US Airways stock.
http://finance.yahoo.com/news/american-airlines-agrees-study-merger-211113885.html
AMR Said Ready to Study Sale Among Options in Bankruptcy (Update 2)
American Airlines will explore strategic options that include a possible sale under an agreement with the unsecured creditors committee in its bankruptcy case
The creditors panel pressed for such an agreement so AMR’s review of its options would include studying a merger with US Airways Group
http://www.bloomberg.com/news/2012-05-11/amr-said-ready-to-explore-sale-among-options-in-creditor-accord.html
AMR, Creditors to Study Merger
US Airways has held talks with the parent of British Airways about its potential bid for American Airlines, according to a person familiar with those talks.
American is a member of the Oneworld global marketing alliance, one of three that dominate the global industry. US Airways has said it aims to shift from the Star grouping to the Oneworld pact led by American and its main European partners, British Airways and Iberia.
Willie Walsh, chief executive of BA parent International Consolidated Airlines Group, said Friday that it had signed a confidentiality pact with American about its restructuring plan.
IAG has hired advisers to assess the impact of American's plan to remain independent in the face of a potential bid from US Airways.
http://online.wsj.com/article/SB10001424052702304203604577398532868215706.html
American Airlines Indicates It Is Open to Discussing Merger
AMR also received a strong endorsement on Friday from its international partner, International Airlines Group, which owns British Airways and Iberia and whose chief executive is Willie Walsh.
“The American management team have the sole right to produce a business plan at this stage,” Mr. Walsh said Friday. “So, the US Airways team under Doug Parker, I think, have actually done a very effective job getting their message out into the market. But at this stage, American appears to be very focused on completing the restructuring task that they had set for themselves.”
Mr. Walsh added that he would be willing to help out American, its biggest international partner, if needed. “We are ready to move quickly if there are any developments,” Mr. Walsh said.
http://www.nytimes.com/2012/05/12/business/american-airlines-indicates-it-is-open-to-discussing-merger.html?partner=yahoofinance
AMR’s UCC attorney: We support AMR’s plan, even as we consider alternatives T he Debtors and the Committee have entered into a binding protocol agreement to jointly explore such alternatives
http://aviationblog.dallasnews.com/archives/2012/05/ucc-attorney-we-support-amrs-p.html
AMR: We and the creditors committee will explore consolidation
http://aviationblog.dallasnews.com/archives/2012/05/amr-we-and-creditors-committee.html
American Airlines to explore merger options
http://finance.yahoo.com/news/amr-creditors-agree-explore-merger-195034676.html
Is AMR Finally Considering US Airways Tie-Up?
http://wallstcheatsheet.com/stocks/is-amr-finally-considering-us-airways-tie-up.html/
American Airlines: We’re doing what needs to be done
http://aviationblog.dallasnews.com/archives/2012/05/american-airlines-were-doing-w.html
CNBC Video: AMR Corp’s Potential Sale
“AMR Officially For Sale”
http://money.msn.com/money-video/stock-ticker.aspx?from=gallery_en-us&videoid=c5b50331-1fb8-4bdc-9529-a0553a2a6fc9
APA president: The executives who led us into bankruptcy aren’t the ones to lead us out
"The team that took us into bankruptcy is not the team that should lead us out. We have a better alternative for our employees, our communities and the future of the airline. That alternative is the promise of a new American Airlines combined with US Airways and their new, invigorated, energetic management team.
http://aviationblog.dallasnews.com/archives/2012/05/apa-president-the-executives-w.html
APFA vice president explains why flight attendants have no confidence in American Airlines management
“US Airways has two advantages over American. First, they understand the problems at American are systemic. They know as well as we do that American's struggles have been brought on a bad business plan that fails to generate revenue, not the cost of paying its workers. Second, US Airways has a plan to grow our company so we can compete with United and Delta. American has no plan.
"This is about more than us. It's about more than my salary and benefits. This is about bringing in a management team that can return this one proud company to a position of dominance in this industry. It's about working for an airline that will lead the pack and set the standards for our competitors to follow. It's about once again working for an airline that deserves to be called American Airlines.
American Airlines under its current management team and their current business plan cannot survive in this marketplace.
http://aviationblog.dallasnews.com/archives/2012/05/apfa-vice-president-explains-w.html
American Airlines Considers Change in Oldest Jet Livery
http://www.bloomberg.com/news/2012-05-11/american-airlines-considers-change-in-oldest-jet-livery.html?cmpid=yhoo
APA Negotiating Update: May 11, 2012
First, thanks to all of the members who participated in today’s rallies in Fort Worth and New York. Our “No Confidence” petition, our rallies and our agreements with US Airways send a very loud and clear message that AMR is in need of significant management changes. Next week, members of our team will be taking the stand in bankruptcy court in New York to make our case for dismissing the management motion to reject our contract. Our attorneys at James & Hoffman have been working seven days a week and frequently around the clock to prepare for this case. A special thanks to Negotiating Committee member First Officer Greg Shayman, who has put enormous efforts into preparing declarations and exhibits for use in court next week.
The Negotiating Committee met with AMR management this week and received updated proposals on sick usage and scope. The sick proposal suggests a transition to a short-term and long-term sick bank, with an annual cash-out provision based upon a pilot’s total sick bank. Access to the long-term bank would require approval from AA Medical for any sick event lasting longer than 14 days. In the management scope proposal, they are asking to be allowed to have up to 55 percent of the mainline fleet count (which would currently allow more than 330 aircraft) be 70- to 81-seat jets for regional feed. Their proposal does not have any requirement for management to add additional aircraft at the mainline. Their proposal also suggests the ability to codeshare with other domestic carriers, up to 50 percent of system-wide available seat miles. The updated sick leave proposal can be viewed by
clicking here, and the updated scope proposal can be viewed by
clicking here.
Members of the Negotiating Committee also met with US Airways management in DFW this week to negotiate the transition of the Conditional Labor Agreement into contract language. The US Airline Pilots Association (USAPA) Negotiating Advisory Committee, representing the pilots of US Airways, flew to DFW to participate in these talks. Their involvement is especially helpful and we are off to a good start integrating them into the process.
We also spent time with the APA Board of Directors this week, discussing strategy and the decisions that will need to be made during the weeks ahead. After APA presents its case to the court next week, we anticipate talks with AMR management continuing in New York as we draw closer to the date when the court could rule to reject our collective bargaining agreement.
