DOUG PARKER AT THE NATIONAL PRESS CLUB
JULY 18, 2012
WHAT PEOPLE ARE SAYING
ABOUT A US AIRWAYS-AMERICAN AIRLINES MERGER
TIMING: WHY MERGE NOW?
“I don't know anybody who's looked at it from 30,000 feet that would tell you that they think the
standalone scenario is superior. [AMR] has not competed well when it was going from No. 1 to No. 2 now
to the third position, and I don't see how a standalone would solve that, especially with this 'shrink and
then re-grow' strategy they are doing.”
– ROBERT W. MANN, AIRLINE ANALYST, R.W. MANN & COMPANY (06/07/12)
“AMR’s standalone plan contradicts itself, in our view. Just this afternoon AMR’s restructuring adviser said
AMR would consider a merger because management’s fiduciary duty involves “maximizing stakeholder
value.” If that’s true then why not explore one now? Is labor not a stakeholder? Even in a post-BK merger
with LCC, wouldn’t AMR standalone have to reset wages higher? To us this feels more about selfpreservation
than maximizing stakeholder value, which an LCC bid would seem to do.”
– HUNTER KEAY, SENIOR AIRLINE ANALYST, WOLFE TRAHAN &CO. (4/25/12)
“Looking ahead, AMR’s plan to grow 20% over 5 years is toxic to industry pricing, which makes it bad for
AMR & the industry in our view. Ultimately, AMR suffers a billion dollar plus revenue deficit to the
industry & creditors must decide which is the stronger revenue model: AMR standalone? Or AMR/LCC
combined? The network muscle AMR would inherit to support domestic & int’l flying makes it an open and
closed case in favor of LCC in our view.”
– DAN MCKENZIE, ANALYST, RODMAN & RENSHAW (4/20/12)
“In order to get the best resolution for everybody, all options should be on the table.”
– JOSH GOTBAUM, PRESIDENT, PENSION BENEFIT GUARANTY CORPORATION (4/20/12)
“If they merge in bankruptcy, they can keep the extra value inside…The airline could invest in the
company and in making labor happy.”
– VAUGHN CORDLE, ANALYST, AIRLINEFORECASTS LLC (4/20/12)
JULY 18, 2012
WHAT PEOPLE ARE SAYING
ABOUT A US AIRWAYS-AMERICAN AIRLINES MERGER
TIMING: WHY MERGE NOW?
“I don't know anybody who's looked at it from 30,000 feet that would tell you that they think the
standalone scenario is superior. [AMR] has not competed well when it was going from No. 1 to No. 2 now
to the third position, and I don't see how a standalone would solve that, especially with this 'shrink and
then re-grow' strategy they are doing.”
– ROBERT W. MANN, AIRLINE ANALYST, R.W. MANN & COMPANY (06/07/12)
“AMR’s standalone plan contradicts itself, in our view. Just this afternoon AMR’s restructuring adviser said
AMR would consider a merger because management’s fiduciary duty involves “maximizing stakeholder
value.” If that’s true then why not explore one now? Is labor not a stakeholder? Even in a post-BK merger
with LCC, wouldn’t AMR standalone have to reset wages higher? To us this feels more about selfpreservation
than maximizing stakeholder value, which an LCC bid would seem to do.”
– HUNTER KEAY, SENIOR AIRLINE ANALYST, WOLFE TRAHAN &CO. (4/25/12)
“Looking ahead, AMR’s plan to grow 20% over 5 years is toxic to industry pricing, which makes it bad for
AMR & the industry in our view. Ultimately, AMR suffers a billion dollar plus revenue deficit to the
industry & creditors must decide which is the stronger revenue model: AMR standalone? Or AMR/LCC
combined? The network muscle AMR would inherit to support domestic & int’l flying makes it an open and
closed case in favor of LCC in our view.”
– DAN MCKENZIE, ANALYST, RODMAN & RENSHAW (4/20/12)
“In order to get the best resolution for everybody, all options should be on the table.”
– JOSH GOTBAUM, PRESIDENT, PENSION BENEFIT GUARANTY CORPORATION (4/20/12)
“If they merge in bankruptcy, they can keep the extra value inside…The airline could invest in the
company and in making labor happy.”
– VAUGHN CORDLE, ANALYST, AIRLINEFORECASTS LLC (4/20/12)