Originally Posted by
slowplay
APA has been negotiating under Section 6 since July, 2006. Where's the advantage?
As you point out, they probably won't have a CBA. That opens a whole lot of doors in the merger/fragmentation department for "other" interests to exploit.
Hope it works out well for them.
Not likely. If Lane abrogates, AMR may impose changes in the contract it wants. Changes to language in anything involving mergers was not part of the 1113 or the term sheet. Additionally, we're still a recognized union and McCaskill-Bond is there. As far as fragmentation, that would likely be a controlled by someone other then the pilots. If pilots didn't go with airplanes, I think you'd see a mass exodus in a short period of time and thus significant loss of worth of the transferred asset during the transition. They could sell the MIA to Delta, but Delta would have to train a couple of thousand pilots within months or inherit an empty ghost town of a terminal and planes.
I think if we ever get to that point or AMR threatens such, it would start a race for the exits that might be uncontrollable. Besides, I think the most value both short and long-term is in a merger and not fragmentation and there is one guy out there (yes, a snake as well) that already has all of AA's labor lined up and once he's done looking over the books, very likely the best POR unless AMR can convince everyone they can move AA forward without the pilots on-board.
Remember, if that somehow occurs and we exit BK like that, it's no longer chapter 11, but section 6 and hopefully if the creditors shoot craps with that plan, they'll understand it will be a different game.