USAirways and TPG may make Joint bid for AA
- Thread starter etops1
- Start date
As an employee of AA, I do not know why the APA or the APFA want to potentially merge with USAIR, however if the TWU is interested it cannot be good for the Mechanics. If it is about saving jobs, that will be a secondary reason with the primary reason being revenue to the international.
Mr. Horton stated today that the company has $13 billion in financial backing for the company's plan to move forward from the bankruptcy.(Jetwire).
In the Q&A the subject of USAIR was brought up and I believe that he sees that as a problem for the company plan.
Mr. Horton did indicate that the alliance of their OneWorld partners were basically mergers themselves.
He touted the company rout structure and a new strength now and upon emergence from bankruptcy, with the union consensual agreements being the only real item blocking the way. However he stated that if necessary he didn't want to exit without those agreements but would.
Mr. Horton stated today that the company has $13 billion in financial backing for the company's plan to move forward from the bankruptcy.(Jetwire).
In the Q&A the subject of USAIR was brought up and I believe that he sees that as a problem for the company plan.
Mr. Horton did indicate that the alliance of their OneWorld partners were basically mergers themselves.
He touted the company rout structure and a new strength now and upon emergence from bankruptcy, with the union consensual agreements being the only real item blocking the way. However he stated that if necessary he didn't want to exit without those agreements but would.
AANOTOK
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- Oct 10, 2009
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I thought it had been stated here many times that they could not or the judge would not allow an exit
without them.
Mr Red
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- May 11, 2010
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A broken ugly place to work,So whos responsible.
I believe that Judge Lane has made that statement. I think he would prefer not to have to abrogate, however he has said that the parties are going to have to come to an agreement anyway., might as well do it now.
WorldTraveler
Corn Field
- Dec 5, 2003
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There will always be people in the world who only want to see life from their perspective despite the fact that the overwhelming evidence remains that what they want cannot be obtained.
No one including US has still explained why the creditors of AMR will want to merge with a company that has lower revenue generating potential and will not have a cost advantate after AA restructures in BK.
US has long thought they could just throw a bunch of money at AMR and take them over without being able to demonstrate that they really can provide the best economic value to ALL of the creditors, who will make the decision about the future of AA.
signals
Veteran
Keep on spinning it, even after I told you that I knew since the 80s, US Air only hired from within. To get in you had to know someone. This is why most local US employees were hired right out of high school, with no college!
Btw, I am not what you would consider airline material. So spin it anyway that makes you feel better.
US better merge or the US-hole Universe will never live it down. Fair Warning!
signals
Veteran
WT,
Good thing you are in the industry, or else they would accuse you of not knowing what you are talking about.
It's going to be a rude awakening when US is once again the stalking horse.
Good thing you are in the industry, or else they would accuse you of not knowing what you are talking about.
It's going to be a rude awakening when US is once again the stalking horse.
signals
Veteran
WT,
Good thing you are in the industry, or else they would accuse you of not knowing what you are talking about.
It's going to be a rude awakening when US is once again the stalking horse.
Good thing you are in the industry, or else they would accuse you of not knowing what you are talking about.
It's going to be a rude awakening when US is once again the stalking horse.
WorldTraveler
Corn Field
- Dec 5, 2003
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except I am not in the industry... but doesn't mean I haven't learned a few things, including basic business fundamentals.
This is US' last gasp... the implications if they fail to acquire AA are enormous. They will drop to an unsustainably small size on the east coast, will have even further oversized hubs using way too many small RJs to be cost efficient compared to DL and WN, and AA as well if they succeed at obtaining a large fleet of 100 seaters, Add in that US' market position in the top east coast markets continues to erode - the slot deal only hastened the process - and it isn't hard to see why US' defenders are so desperate to make an AA acquisition work.
.
Problem is that they can't answer the question as to HOW a US takeover of AA will yield better economics for AMR creditors or even if US borrows the money to pay off the lenders, a better deal for those lenders compared to what they could get dealing with AA directly.
This is US' last gasp... the implications if they fail to acquire AA are enormous. They will drop to an unsustainably small size on the east coast, will have even further oversized hubs using way too many small RJs to be cost efficient compared to DL and WN, and AA as well if they succeed at obtaining a large fleet of 100 seaters, Add in that US' market position in the top east coast markets continues to erode - the slot deal only hastened the process - and it isn't hard to see why US' defenders are so desperate to make an AA acquisition work.
.
Problem is that they can't answer the question as to HOW a US takeover of AA will yield better economics for AMR creditors or even if US borrows the money to pay off the lenders, a better deal for those lenders compared to what they could get dealing with AA directly.
- Thread Starter
- Thread starter
- #26
just make sure you have my gift gard . That's all I am saying .
Interesting perspective.. The article clearly states that TPG hasn't specified that its dealing exclusively with LCC, yet some believe that they are..
Here's an article from the Financial Times stating that TPG is looking at "Post Bankruptcy" options.. Think about that one for a minute...
http://www.ft.com/intl/cms/s/0/0efb5ec2-ab32-11e1-a2ed-00144feabdc0.html#axzz1wjt4VxMl
Could this mean Parker is unable to convince UCC members that his deal is better?
US Airways is not big enough in terms of their route structure to compete effectively with the competitors that have now merged. Parker knows that over time when their labor costs go up, no one will want to invest in the airline absent dramatic moves on his part..
We still haven't heard from IAG.. (Or have we?)
Think JBLU post BK....
Here's an article from the Financial Times stating that TPG is looking at "Post Bankruptcy" options.. Think about that one for a minute...
http://www.ft.com/intl/cms/s/0/0efb5ec2-ab32-11e1-a2ed-00144feabdc0.html#axzz1wjt4VxMl
Could this mean Parker is unable to convince UCC members that his deal is better?
US Airways is not big enough in terms of their route structure to compete effectively with the competitors that have now merged. Parker knows that over time when their labor costs go up, no one will want to invest in the airline absent dramatic moves on his part..
We still haven't heard from IAG.. (Or have we?)
Think JBLU post BK....
The answer is because the lower revenue generating potential on the US side no longer exists with a merger. Each airline alone currently is at a disadvantage competing with UA and DL. Combined, they will be as strong or stronger.
AA's plan to grow by 20 percent as a stand alone carrier is just adding capacity to an industry that already has too much capacity and will destroy yields. With a merger, they will grow somewhere around 50 percent without adding any capacity and in fact it will probably remove some which will increase yields.
Everybody, including Horton himself is on board for a merger. He just wants to do it on his own terms after restructuring so he can remain in control.
