US Airways actually bought AMR!

Discussion in 'US Airways | Dividend Miles' started by Wandering Aramean, Jul 13, 2012.  |  Print Topic

  1. Wandering Aramean
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  2. HaveMilesWillTravel
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  3. Wandering Aramean
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  4. HaveMilesWillTravel
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    I'll think about it :)
     
  5. Wandering Aramean
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    I appreciate the consideration. Most kind of you, indeed. :p
     
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  6. HaveMilesWillTravel
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    OK, after careful consideration of all facts and circumstances I have come to the conclusion that I can endorse your thread. Carry on! :D
     
  7. HaveMilesWillTravel
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    How much money do I have to invest to buy sufficient debt of AA to get a seat at the table, too?
     
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  8. Wandering Aramean
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    My understanding is that any secured creditor has the opportunity to participate directly. Unsecured creditors go through a committee headed pretty much by the folks with the most at stake. But I'm not a bankruptcy lawyer (or any lawyer, really) so that might be completely off-base.
     
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  9. NYBanker
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    They won't have any material impact on the process with this sort of sized holding.

    They will likely get additional information only provided to the lenders...which might be of interest to management...but this is more of a publicity stunt/put AA on notice type move than anything with bona fide teeth.

    If anyone would like some more debt, I can get it for you at 65%! ;)
     
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  10. HaveMilesWillTravel
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    What's the minimum amount? Can I tax-deduct travel to bankruptcy court meetings?
     
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  11. NYBanker
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    I suspect their unsecured trades in minimum denoms of $1,000. You should call your broker and see what they can get you.
     
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  12. anabolism
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    I like that idea (deduct travel) but I suspect it'd be subject to various limitations.

    Sent from my iPod Touch using milepoint
     
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  13. NYCUA1K

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    A move like this may be a prelude to a merger between AA and US holding companies...I would not be surprised to learn that AMR had tacitly approved US's move. Would a US/AA merger come close to rivaling the UA/CO or DL/NW merger in terms of size of business, to make the resulting airline competitive again?
     
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  14. Wandering Aramean
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    It might be a prelude in that it has happened already and the merger will happen next should it happen at all. But this was a PR stunt, not an actual reasonable or rational step in a typical merger process.

    It would still be #3, I believe.
     
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  15. Mike Reed

    Mike Reed Gold Member

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    So AA would be a larger #3, but US would go from #5 to #3. Hmmm... whose advantage does this work to again?

    Oh, yeah, Dougie... who still feels like the last girl standing on the wall at the dance.
     
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  16. milchap
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    No thanks. :)
     
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  17. Wandering Aramean
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    It is to AA's advantage, too. They are not going to be strongly competitive standalone coming out of the bankruptcy.

    The real losers are passengers. We get less competition, higher fares and fewer options.
     
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  18. MSPeconomist
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    Can AA prevent US from getting or using such information? Would there be any sort of fire wall requirement between the financial investment folks and those who plan US's operational and revenue management strategies, for example?
     
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  19. kyunbit
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    Can't we MPers also pool in money to buy out AMR? :D
     
  20. anabolism
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    In which ways? Competition can mean different things. Larger size can mean economies of scale, but also operational and labor problems.
     
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  21. Wandering Aramean
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    AA already has the labor problems and operational issues are reasonably linear after reaching a certain size. Going to alone is unlikely to be a successful approach for either AA or US at this point. They need the broader network and the scale which the merger can bring them to capture or maintain corporate contracts and otherwise be able to grow and thrive.
     
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  22. HaveMilesWillTravel
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    Problem is we have just too many (armchair) CEOs :)
     
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  23. Sean Colahan
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    I know I am interested to see how this plays out gong forward.
     
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  24. anabolism
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    Good points.

    :D
     
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  25. Photonerd71

    Photonerd71 Silver Member

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    For a limited time only, you too can buy AA debt. Just call 1-800-BUY-DEBT and for only $19.99 you to can own a piece of an airline.


    But wait, there's more, if you call in the next 10 minutes we'll double your order. That's right $40 of AA for only $19.99. Buy you must act fast and call now.
     

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