acl65pilot

Eagle, that is the problem times are different and the creditors moods and outlooks are different. They are at this time wanting to see capacity cut and are open to a fragmentation. Rolls Royce said as much on Nov 29 when AMR filed. That is why AMR did not file for DIP. It is not a cure all, and they know it. It just held the wolves at bay a little longer. It will be very telling to see what the cash burn of AMR is.

On top of all of this, AMR has a revenue issue that cannot be cured by sawing the debt in half.

Raging white

You've mentioned getting rid of SLC if we gain new Western US assets. Don't you think there's enough value in keeping it?

dragon

What are the rules with CH11 now regards with and without DIP?

Superpilot92

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GIFSoup

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.

eaglefly

In effect, AMR is financing its own reorganization (at least for now) as opposed to needing outside investors who have controls when it's their money on the line. If AMR seeks financial assistance down the road, it would likely not be from a position of desperation, but of coordinating a business arrangement (like an invesment stake) that would be profitable and in the interest of both parties.

The bankruptcy law changes notwithstanding, this bankruptcy is like none previously in the industry and the old assumptions don't necessarily apply.

Free Bird

I think this is all just a play to get USAir to cough up some more dough. The only assets that make sense for Delta are the international ones that AMR has.

Mother Delta hates competition and seems to run from it. Therefore ORD does not make sense because of UAL, not to mention DTW is close. MIA however, makes perfect sense, as do the Heathrow slots that AMR has.

TOGA LK

Had to jump back on this forum after seeing the latest announcement. I do not believe a merger between AA and Delta will ever be allowed. What it will do is run the price up for US Air.

.02

eaglefly

Sure, they'd like to take the sweetest cherries, thank you very much. Can't blame them. Problem is, the pie that's left isn't that delicious to too many. Even U, without Miami and its South American routes or other European and Far East routes doesn't have enough to make it a long-term survivor. A break up of AA basically means the death of One World, leaving Star as the Aeroflot of future global networks with little competition.....at least none that can come near to knocking it off the top of the hill.

Best bet is AA stays independent and weathers this annoying fly storm. I think there's a "plan" and a "goal". Upon emerging from Chapter 11, THEN the plan will be known. Then we wait to see what the goal is. What AMR does now, is simply the plan to get to the doorstep of the goal.

eaglefly

I don't think it will even get to the point someone will not allow it.