Done deal
 

http://www.bloomberg.com/news/2013-0...tml?cmpid=yhoo

The boards of American Airlines parent AMR Corp. and US Airways Group Inc. are prepared to vote on a merger on Feb. 11 as executives and advisers work on final terms this weekend, people familiar with the matter said.

The sides have agreed that AMR’s bankruptcy creditors would get 72 percent of the equity in the new carrier, with 28 percent for US Airways shareholders, said two of the people, who asked not to be identified because the talks are private. US Airways Chief Executive Officer Doug Parker will run the airline as AMR CEO Tom Horton becomes non-executive chairman, the person said.

Horton’s tenure in that post is still being negotiated, and will be limited to one or two years, one of the people said. AMR’s bankruptcy creditors committee is poised for a vote early next week on any merger accord, with an announcement as soon as Feb. 12, two people said.

Leadership and the division of the equity had been the final major issues in the discussions, people familiar with the talks have said. A tie-up between American, the third-largest U.S. airline, and No. 5 US Airways would create the world’s biggest carrier by passenger traffic.

American declined to comment on the deliberations, said Mike Trevino, a spokesman for the Fort Worth, Texas-based carrier. Kelly Sullivan, a US Airways spokeswoman who works for public-relations firm Joele Frank, Wilkinson Brimmer Katcher, also declined to comment.

Jack Butler, an attorney for the creditors committee, didn’t respond to an e-mail or phone call seeking comment

Source: AMR, US Airways delay meeting on merger - Yahoo! Finance

This is turning into a soap opera

Sounds like Horton is still not happy with his piece of the pie.

Eh, there will be another "merger possible within 2 weeks" article in a couple weeks. :)

I cannot believe Horton's employment is even a discussion point, much less a major obstacle to a multi-billion dollar event affecting tens of thousands of employees, hundreds of communities, and countless vendors.

WFC about Horton's employment status, or his feelings, or how he gets let down easy? Sounds like Parker got the job. Horton's piece of the discussion should then take about five minutes. Write him a nice letter, give him his earned compensation, and a pat in the back. And get him off the property. EOS.

Shouldn't the respective boards then focus on the future of the companies?

I'm not a LCC or AMR guy, and I'm not a fan of Doug's. I'm a shareholder that got trounced, so I'm curious about recoveries, but lord knows I couldn't... care less about Horton's personal situation.

Does he care about mine? Or yours?

Sorry to say it but you obviously do not understand corporate America. It is not about anything more than protecting those in the good ol' boys club. How else do,you figure that people who have run their ships on the rocks not only get a voice in how to right that ship, they get big bonuses, a phony job once a new course is set then get hired by another company for big bucks and the chance to screw up again. All of this occurs with the blessings of the board of directors who themselves are clueless about the business, what does Roger Staubach know about flying an airplane, but are "respected and accomplished" individual selected by management. At least the captain of the Concordia was arrested and faced a possible jail sentence.

The Saga continues
 

Sunday update: Decision on US Airways-American Airlines merger will wait a while longer | Airline Biz Blog

Sunday update: Decision on US Airways-American Airlines merger will wait a while longer
By Terry Maxon
[email protected]
4:50 pm on February 10, 2013 | Permalink

As we wait for that announcement of an American Airlines merger with US Airways, let’s sum up what everybody is saying.

First, the Dallas Morning News information is still that there’ll be an AMR board meeting early this week to vote on matters. That’s what we’ve been told, and that hasn’t changed since the middle of last week.

Although there were a spate of reports late last week that the AMR board would be meeting Monday, Feb. 11, we had been warned off saying the meeting would be held that day – just that it would be early in the week.

The whisper date for an announcement had been Tuesday, Feb. 12, but again, our sources waved that off, saying we should look for an announcement later in the week.

Again, this all assumes the boards of AMR and US Airways Group approve a deal. And until there’s a deal, there’s no deal.

The Associated Press, which Friday had been quoting sources saying the AMR board was scheduled to meet Monday and that the US Airways board would meet over the weekend or Monday, on Sunday said the meetings had been delayed.

The AMR board wants to meet in person rather than have a telephone conference, and the US Airways board would take its vote after the AMR board does, AP reported.

Reuters, which also been reporting a Monday meeting, said Sunday that “AMR needed more time to finalize details and the boards of the two airlines are now not expected to gather until around Wednesday, the sources said.”

The last story I’ve seen from Bloomberg is dated Friday, at which point its sources were predicting Monday meetings for the AMR and US Airways board.

We seem to have consensus that US Airways chairman and CEO Doug Parker would be the CEO of the merged airline. The debate seems to be on what role AMR/American chairman and CEO Tom Horton would enjoy – how active a role as a chairman he might have and how long he would stay after the merger becomes effective.

The consensus also seems to be 72 percent for AMR creditors and other interests and 28 percent for US Airways shareholders, but that may be a case of everybody agreeing with everybody. In any case, we’re certainly in the 70-75 percent range for AMR and 25-30 percent for US Airways.

It may be the myriad details that are delaying a final decision. But the consensus is that the two above items are the real questions to be nailed down, finally.

I understand the "good ol boys" club in the airlines, but seriously! This is getting ridiculous! Tommy, you're done playing airline. Time to go home!

IMO, the ebb and flow of all this hooey is based on the behavior of the AMR BOD's meeting schedule. I'm sure there are unresolved details behind the scenes that will take a bit longer. The media are dopes easily led around by their noses and a little "leak" here or there is blown up beyond what the leaker can confirm. A move one way or the other will have to be made very soon and I'd think it would be within the 3 days - 2 week period.

Laughable. And so typical of AMR "leadership".