Originally Posted by eaglefly

The secured creditors are more protected and knew the possibility of AA's impending BK and that includes both Boeing and Airbus who STILL went ahead with AA orders. They KNOW AA is viable with proper restructuring with debt. The unsecured creditors include two banks, two vendors and three unions and these groups don't have the leverage to force mergers or liquidations. AA has a two-month period before any bids might come forward and a 180-day period of exclusivity wherby as long as they have internal financing, they retain control. The key is to A. Make the RIGHT decisions as you only get one shot and then B. Exit in a healthy and competitive state before others can get their foot in the door.

AMR didn't seek DIP because they didn't need it. That is one reason they filed earlier then expected - maximum cash, maximum control to exit in minimum time.



Revenue can be dealt with once costs are corrected and being immeadiately bigger isn't required. Jet Blue and Alaska are two examples of that. Yes, AA has to decide what they intend to be and a merger (in whole or part) may indeed be a part of the future, but first things first.