NEWS - Source Says AMR Now Considering Sale/Merger Options

Discussion in 'American Airlines | AAdvantage' started by DestinationDavid, May 11, 2012.  |  Print Topic

  1. DestinationDavid
    Original Member

    DestinationDavid Milepoint Guide

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    I'm sure you've seen this already, but if people want to discuss....

    LINK.

    American Airlines parent AMR Corp will explore strategic options that include a possible sale under an agreement with the unsecured creditors committee in its bankruptcy case, people familiar with the matter said.

    The process would begin this summer, before the September expiration of AMR’s exclusive right to propose a reorganization plan, said the people, who weren’t authorized to speak publicly. AMR said the accord calls for studying “potential consolidation scenarios” without committing to pursuing a deal.


    The creditors panel pressed for such an agreement so Forth Worth,Texas-based AMR’s review of its options would include studying a merger with US Airways Group, which is considering whether to mount a takeover bid, said one of the people.
     
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  2. MSPeconomist
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    MSPeconomist Gold Member

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    I guess they would prefer a merger to a takeover, if those are the choices.
     
  3. HeathrowGuy
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    HeathrowGuy Gold Member

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    Y'all will love being members of Dividend Miles. :D
     
  4. LETTERBOY
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    LETTERBOY Gold Member

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    I don't think it'd be the end of the world if they merged, but I would REALLY prefer AA & US to remain separate airlines. However, I'm starting to think they're headed for an eventual merger.
     
  5. yaychemistry

    yaychemistry Silver Member

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    At least my girlfriend would be able to user her otherwise orphaned AA miles... (all 7,000 of them)
     
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  6. meFIRST

    meFIRST Silver Member

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    As I've said before, when Doug Parker finally dismanteles AAdvantage, the $&@! will hit the fan.
     
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  7. TrippePanAM

    TrippePanAM Gold Member

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    :D lol
     
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  8. meFIRST

    meFIRST Silver Member

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    First came DeltaWorst
    Then CO dba UA

    The US Air hostile takeover of AA will be epic. I can't wait.

    Sidenote: I think Doug Parker is a good guy. He will pluck the best of American, and merge it with US Airways. I wonder what name will survive?
     
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  9. NYBanker
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    Small victories. ;)
     
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  10. jbcarioca
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    jbcarioca Gold Member

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    The US side has suggested it will be American Airlines,,HQ in DFW, Texas and AAdvantage.
    There is a long time before anything will actually happen, if it does at all.Should we not consolidate all these threads?
     
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  11. Art234
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    Great-Doug Parker will instill his anti customer philosophy and ruin yet another airline....what's next for him? The US Air Force? British Airways?

    From personal experience-the US management team is myopic and disingenuous. If it ain't on a spreadsheet they can't read it or understand it. They will step over dollars to pick up pennies. They have lied to my face on a number of occasions.

    While this may in fact be inevitable, I do suggest that the AA unions who drank Dougie's Koolaid look very closely at the labor relations within US right now-- 7 years and no contract for pilots or FA's, legal battles still in court...just be aware he'll tell you anything to do the deal and then renege on just about everything.
     
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  12. Mike Reed

    Mike Reed Gold Member

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    I think this is more to expose the financials of a potential merger in a more formal setting (the court) than the boardroom, behind closed doors. I wouldn't take this as an indication that they're more open to it - rather they're ensuring they can say no now as well as immediately out of Ch 11.

    This is the creditors saying "we're not asking you to merge - just to have the discussion so we can say now with certainty rather than an uncertain ignoring of the issue.". If anything the creditors come out better with no merger because it puts AA in a position to acquire assets of. Nearly-bk-again US as AA emerges back into profitability.
     
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  13. Art234
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    Good point Mike--and for those Parker fans, remember that US profits are tied directly to ancillary fees and to artificially low labor costs. Once US unions get decent contracts (if that is even possible now), US will be in the red.

    I am resigned to the fact that this is somewhat more than 50-50 in favor of a merger-it does make some sense. I would just hope that someone other than Parker and Kirby would run it.
     
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  14. tassojunior
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    tassojunior Silver Member

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    America West/ dba US Air/ dba AA

    Still the crummiest USA airline
     
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  15. Max M

    Max M Gold Member

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  16. autolycus

    autolycus Gold Member

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    Oh boy. With Delta having retained Blackstone, with US being very public about wanting to buy AA, and now with rumors of CO dba UAL looking at it, we have ourselves a full array of bidders. The only way it could get more entertaining is if somehow Alaska Air or Southwest could pull off a coup and steal AA out from under the big 3's noses. Wouldn't that be a hoot?
     
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  17. jbcarioca
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    jbcarioca Gold Member

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    We should not forget that there still are OW deals still to be proposed. US institutional money linked with IAG and/or OW carriers could make intriguing offers too. One or more such deals are almost certain to surface soon, probably with quite attractive structuring features. For example, how about Latam?

    One cannot help but wonder if there will be a fuel deal somewhere in the mix too, following the Delta lead.
     
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  18. Captain Oveur
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    Captain Oveur Gold Member

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    I am FAR from an expert, but my first impression is that UA acquiring AA would be a regulatory nightmare. If not an impossibility.
     
  19. jbcarioca
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    jbcarioca Gold Member

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    To be candid, that would never happen nor would Delta and cannot be serious IMO. FWIW, and I am no expert either.
     
  20. HeathrowGuy
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    Not really, it all depends on the structure of the deal and concessions made to regulators.
     
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  21. autolycus

    autolycus Gold Member

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    With the right concessions, a merger of UA+AA, DL+AA or US+AA should all theoretically be possible under the current test that is applied. US+AA is assumed to be an easier merger to work around the requirements, but from what I know--and I am not an expert either--the others should certainly be possible as well. Politics are funny though, and who knows what the current administration or a Romney administration would do, depending on the timeframe involved.
     
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  22. LETTERBOY
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    LETTERBOY Gold Member

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    But would the concessions required by the government make any proposed merger not worth it?
     
  23. estnet
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    estnet Gold Member

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    Oh no tell me it isn't so.......
     
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  24. autolycus

    autolycus Gold Member

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    Depends on what the other airline hopes to accomplish with the merger/buyout. I can think of scenarios in which all three of the bigs would be interested in what they would expect to have to give up, but there's also a lot of unpredictability with the government approval process.
     
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