2. AWA had money for the merger, something AAA did not. It is called market capitalization. AWA stock bought AWA something to the tune of 38% of LCC, and AWA stockholders were by far the largest single investor in the merged airline. Can't say anything even close to that for AAA.
That's a big stretch Nic. Market cap doesn't buy anything. It might help you borrow more money to buy something, but it is not cash. Go to Boeing and say "Hey, my market cap(today) is 3 billion, give me 10 777s" and see what they say.
"What Does Market Capitalization Mean?
The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determining a company's size, as opposed to sales or total asset figures."
The AWA stockholders were not investors in the merger, they were investors in AWA that allowed their previous investment to be rolled over into the new company. The AWA stockholders money most like had already been spent as AWA had an ATSB loan and Parker and Kirby said you guys were going to face a cash crunch. Heck, even you merger committee did. From the Nic:
"The America West Representatives concede that the scheduled
repayments of the Company's ATSB loan created potential liquidity
problems for the airline."
The AWA stockholders received stock in the new company because they owned stock in AWA when the merger happened and AWA was solvent. Like AWA pilot, the merger worked out well for them.
Additional cash had to be raised to do the merger and it came from outside sources.
You guys throw this "saved you" stuff around as if we should kiss the ground you walk on. YOU didn't have anything to do with the merger, as you have said you didn't want it. Parker didn't do it our of the goodness of his heart, he did it because he thought it was in the best financial interest of AWA, and it looks like he was right. The company I worked for brought a lot to the merger, more than AWA it seems to me, but both companies needed it.