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AMR CEO Ridicules Possible US Airways Bid - Stocks To Watch Today - Barrons.com

fullflank

Ooooh snap! Time for Dougie and Kirby to lace up their *** kickers.

KillingMeSmalls

Those two have history from when they were go-getters together at American. Horton's ego is going to end up burning everyone that supports him now. It's sad to see when there are so many employees at stake.

filejw

Thing to remember in Bankruptcy Court is that it not up to the company CEO it is the Judge that make the decisions. His first responsibility is the creditors. Not that I think US Air has much of a chance.

B757200ER

If I was Horton, I'd say the exact same thing. Good analysis.

Errbus

Kind of funny coming from the airline that is bankrupt and just announced they're letting go 400 pilots... talking about the airline that made a profit last year and is currently hiring pilots.

LittleBoyBlew

At AMR anytime they mention a plan, count on the opposite being true. Their employees were told in multiple meetings, that AMR would NOT BE FILLING BK. They mentioned 4.2 Bill in the bank, largest AC order in history, and positive ongoing neg. with the APA. 9 days later, they filled!! AMR is an EXPERT in smoke screens.
If their lips are moving....well you know.

jumpseat2024

uhh US Air filed twice in 02 and 04...so you can go ahead and take them off their pedestal

Ottopilot

Ancient history in the airline world. What are they today?

__________________
-Otto Pilot.

cactusmike

I don't know, I think Horton is pretty accurate in most of what he says.

“Let’s go back and look at history a little bit. This is not US Airways’ first attempt at this. This is a small company very strategically limited, I would argue – not any international flying, hubs of less strategic importance.

This will be their fourth try at this: Twice for United, once for Delta while they were restructuring, now American. I would argue that this will be every bit as successful as their prior tries. I’m not sure what’s in the water out there in Phoenix. Maybe it’s the cactus. I don’t know what it is."

The hubs for US Airways are not in the same strong markets like AA. Chicago, New York, Dallas are more robust cities than Charlotte or Philly or Phoenix for that matter. The LCC hubs in PHL and PHX are in the 4th and 5th largest cities in the US and are fully capable of supporting hub operations with strong O&D traffic but they are smaller markets. CLT is a much smaller city and the financial hub it was 10 years ago is not as strong. It is a good alternative to traffic through ATL and so it does remain competitive but we are not American.

Once AMR restrucures they will be as strong as Delta or UCAL if they build up Pacific traffic and other international destinations. Right now what Horton said about LCC also applys in many ways to AA. American is strong in the transAtlantic market and South America but they don't have the worldwide coverage the others do, particularly when you factor in the stronger alliances AA's competitors have.