Tomahawk58

What advantages do you offer for a merger led by US Airways during American’s bankruptcy, as opposed to an American-led merger after American emerges from bankruptcy?

Parker: “One certainty – for whatever reason, part of how American has gotten themselves into this predicament is hoping that the world stands still while they get other problems fixed. And the world doesn’t stand still.* There’s no guarantee, while we’re here today, that we’ll be here a year from now to do this. A lot of things can happen that none of us know.

“But I know in this business that things could go on that could make it so that this deal could never get done. Once everybody is out in it’s a public company and American, okay, let’s merge, nothing can stop at that point a United or Delta from saying why don’t we just go acquire US Airways?

“We’re fiduciaries. If our company’s for sale, it’s for sale, and we’ll sell it to the highest bidder, and American probably wouldn’t win that. That’s the big one – the certainty of getting it done. That could be incredible. That would be obviously a situation where it would be hard for American to ever recover from, if United or Delta got themselves to that size of scale and American had passed on this opportunity.

“On top of that, there are a number of things you can do in bankruptcy that you can’t do outside it. We don’t actually know what all of those are because we haven’t had the chance to go through all of American’s confidential information.

“I’m certain that if we were working together that we would clean up and integrate before we emerge instead of after the fact saying, ‘Gosh, I wish we’d taken care of that in bankruptcy. Because bankruptcy does provide that opportunity, to make sure you’ve got all your contracts where you want them and have the ones the want in place and don’t have the contracts that aren’t economical. That’s what it’s for.

“It’d be a shame to go through that process and then find yourselves wanting to merge while you’re at the state where you hadn’t done that.”

When you talk to bondholders/creditors, what questions do they raise most?


He is not in this for AAer's or his own folks for the matter either!

eaglefly

......and yet AMR endlessly continues to drive their employees deeper into Parker's arms.

Mind boggling it is.

Tomahawk58

As you said earlier, we'll have to wait and see the lbo. I just think Mr. Parker is a sleaze for trying to do this on the backs of AAer's and his own team. Who's the real opportunist here? Rhetorical of course......it's Doug!!!!

I'll also add that I don't think much of the union presidents for attending a competitor's shareholder's meeting. Well beyond the treachery line in my opinion! I mean when is the last time anyone saw pilots, FAs or other union leadership sitting in the shareholder meeting of a competitor?

eaglefly

One can only surmise then that the alternative to Mr. Parker must be truly egregious.

In reading the above paragraph and how the "union president" phrase is said (as from an external source),it's clear to me it wasn't written by a "union pilot". If this is "treachery", then it's looks like an "equal and opposite reaction" .

Tomahawk58

Look, you can take my comments however you wish, but Captain Bates is a traitor pure and simple! Laura Glading is simply an idiot, but she's the problem child of the APFA.

So when Doug refers to "contracts" just what do you think he's referring to? Management doesn't have contract outside maybe the top 10 officers. He is not referring to suppliers since AA has already rested the gains there. This is a pure power play to get the labor contract Doug wants.

It's tough to wake up and realize you've sold yor soul and your membership down the river for thirty pieces of silver!

eaglefly

I'm sorry Tom, but I simply cannot not notice your disingenuous motivations. Your opening post doesn't shoot down a U merger, just one NOT controlled by AMR management, yet you paint Parker as the devil.

This makes no sense. Well, actually it does if one is of the belief AMR management has no problems with a U merge as long as they ca$h in as the controllers. Personally, I have a pretty good idea you must be one of the potential ca$hee's and that must be your motivations here.

Good luck, but as far as voting AA pilots, I doubt you'll find many kindred spirits around.

Sliceback

Simple question, are you paid by the provisions of the APA contract?

80drvr

AMR Corp. (AAMRQ) Chief Executive Officer Tom Horton asked an ad hoc bondholder group to study his plan for a stand-alone American Airlines before reviewing a possible merger for the bankrupt carrier, two people familiar with the matter said.
The group, which holds about $700 million in AMR debt, supports that sequence for its review, said the people, who asked not to be identified because the meeting was private. Horton expressed frustration with attention being given to a pending US Airways Group Inc. (LCC) merger bid, the people said.
The process discussed at yesterdays session in New York is the one being followed in AMRs bankruptcy, with the company agreeing to consider options after detailing its own strategy to stay independent. The ad hoc group organized outside of U.S. Bankruptcy Court and isnt obliged to follow the same steps.
Hortons meeting was his first with the bondholders, who formed two such groups in an effort to gain leverage and reap the largest return. Chief Restructuring Officer Beverly Goulet told bondholders about two weeks ago that AMR will win more union concessions than US Airways, and that it should be allowed to negotiate a merger after leaving Chapter 11, the people said.
As part of his presentation, Horton cited evidence that he said showed Fort Worth, Texas-based Americans stand-alone plan is working, including an industry-leading improvement in a benchmark revenue measure last month, according to the people.
US Airways
US Airways CEO Doug Parker told shareholders at the carriers annual meeting today in New York that the Tempe, Arizona-based airline was making great progress toward a merger. Restructuring in bankruptcy wont be enough to fix Americans weaknesses, he said.
We are completely confident in the strength of our plan for success, American said in a statement in response.
The bondholder groups wont meet with US Airways until after a judge decides whether American can reject existing union contracts and negotiate new terms that will help cut annual labor costs by $1.25 billion, people familiar with their strategy have said. AMR filed for bankruptcy on Nov. 29.
US Airways has told bondholders it would provide greater returns from its labor accords with Americans unions, flexibility with plane leases, and a projected $1.2 billion in annual savings and new revenue in a merger.
To contact the reporters on this story: Jeffrey McCracken in New York at [email protected]; Mary Schlangenstein in Dallas at [email protected]
To contact the editors responsible for this story: Ed Dufner at [email protected]; Julie Alnwick at [email protected]

GQpilot

I can't say I'm all too excited about this merger since it's going to be paid for in part by US employees. We (west) will get an hourly pay raise, but lose most of the good things in our contract to pay for American pilot's retirement. That being said I understand that in the long run I will benefit because it will create a stronger airline.

From an American pilot perspective, you'd have to be a fool not to support this merger. Parker for all of his faults is leaps and bounds above current AA management. The combined carrier will be far stronger than either standing alone. If it goes to arbitration, the American pilots because of their better contract and widebodies will take the upper spots in the seniority integration.

So Tomahawk are you a fool or am I missing some hidden reason or agenda on your part?

G

cactusmike

Irony, irony. US Airways pilots complaining about taking a hit to bring AA pilots out of a 1113 contract. Just who do you think took a hit with the AWA/ US merger? If we had gotten a joint contract ( we will not see one now) it would have been a windfall for the East pilots at the expense of the West. As a matter of fact, the only pilots that have benefitted from this deal have been the East.

Just sitting on the sidelines waiting for the fun to begin.