Eagle Life
06-13-2012 | 12:39 PM
#6032
Banned
Joined: Jun 2008
Posts: 8,350
Likes: 0
Hostile takeovers
A hostile takeover allows a suitor to take over a target company whose management is unwilling to agree to a merger or takeover. A takeover is considered "hostile" if the target company's board rejects the offer, but the bidder continues to pursue it, or the bidder makes the offer directly after having announced its firm intention to make an offer. Development of the hostile tender is attributed to Louis Wolfson.
A hostile takeover can be conducted in several ways. A tender offer can be made where the acquiring company makes a public offer at a fixed price above the current market price. Tender offers in the United States are regulated by the Williams Act. An acquiring company can also engage in a proxy fight, whereby it tries to persuade enough shareholders, usually a simple majority, to replace the management with a new one which will approve the takeover. Another method involves quietly purchasing enough stock on the open market, known as a creeping tender offer, to effect a change in management. In all of these ways, management resists the acquisition but it is carried out anyway.
US Airways Moving for Hostile Takeover of American Airlines, Has AA Unions on Board
Here is what happened with Delta
"On January 31, 2007, Delta's creditors rejected US Airways' hostile takeover attempt, and US Airways withdrew its offer to buy Delta"
Same thing happened with United
And now AMR, Also the debt will be restructured but most of it will be there until paid off, yea some stock will be issued but the majority of the debt will be there but with more favorable terms. Of course there is going to be debt shed as aircraft are returned and other changes are made.
Read Below
"Insurmountable levels of debt are another albatross around the neck of the legacy airlines. While American will likely shed or refinance some of the airline’s debt in more favorable terms while in bankruptcy, the massive debt problem for U.S. legacy airlines is still obscenely out of control. Prior to the bankruptcy action, American Airlines was carrying at least $10 billion in debt with another $7 billion in unfunded or underfunded pension liabilities. Sadly, even after bankruptcy, Delta Air Lines is still carrying $14 billion and United Airlines $13 billion in debt and pension liabilities"
http://boardingarea.com/blogs/flight...core-problems/
Again, most of the airlines shed cost and recede some of the debt but they kept most of it! Also US Airways has tried hostile takeovers with United and Delta and we are next... There is no question about it.
A hostile takeover allows a suitor to take over a target company whose management is unwilling to agree to a merger or takeover. A takeover is considered "hostile" if the target company's board rejects the offer, but the bidder continues to pursue it, or the bidder makes the offer directly after having announced its firm intention to make an offer. Development of the hostile tender is attributed to Louis Wolfson.
A hostile takeover can be conducted in several ways. A tender offer can be made where the acquiring company makes a public offer at a fixed price above the current market price. Tender offers in the United States are regulated by the Williams Act. An acquiring company can also engage in a proxy fight, whereby it tries to persuade enough shareholders, usually a simple majority, to replace the management with a new one which will approve the takeover. Another method involves quietly purchasing enough stock on the open market, known as a creeping tender offer, to effect a change in management. In all of these ways, management resists the acquisition but it is carried out anyway.
US Airways Moving for Hostile Takeover of American Airlines, Has AA Unions on Board
Here is what happened with Delta
"On January 31, 2007, Delta's creditors rejected US Airways' hostile takeover attempt, and US Airways withdrew its offer to buy Delta"
Same thing happened with United
And now AMR, Also the debt will be restructured but most of it will be there until paid off, yea some stock will be issued but the majority of the debt will be there but with more favorable terms. Of course there is going to be debt shed as aircraft are returned and other changes are made.
Read Below
"Insurmountable levels of debt are another albatross around the neck of the legacy airlines. While American will likely shed or refinance some of the airline’s debt in more favorable terms while in bankruptcy, the massive debt problem for U.S. legacy airlines is still obscenely out of control. Prior to the bankruptcy action, American Airlines was carrying at least $10 billion in debt with another $7 billion in unfunded or underfunded pension liabilities. Sadly, even after bankruptcy, Delta Air Lines is still carrying $14 billion and United Airlines $13 billion in debt and pension liabilities"
http://boardingarea.com/blogs/flight...core-problems/
Again, most of the airlines shed cost and recede some of the debt but they kept most of it! Also US Airways has tried hostile takeovers with United and Delta and we are next... There is no question about it.
06-13-2012 | 01:26 PM
#6033
Underpaid...
Joined: Nov 2010
Posts: 2,101
Likes: 0
From: French-Canadian
OK, I'll concede that U swaying the UCC, gaining their support and obtaining control of AA via a BK judge is a "hostile takeover" (as opposed the more common occurance outside of BK), but I still don't know where your getting that AA will exit BK with 25 billion in debt to be assumed by whomever. That would be twice what the others have now, years after they exited BK. That would be a pretty bad faliure of a Chapter 11 trip, don't you think ?
06-13-2012 | 01:37 PM
#6034
Gets Weekends Off
Joined: May 2010
Posts: 5,244
Likes: 2
From: Baja Vermont
No, they wouldn't. The whole Chapter 11 process is about "sheep dipping" the debt away. Look at the GM BK; the process is about reducing loads of debt and turning it either equity or a percentage reduction.
GF
GF
06-13-2012 | 05:16 PM
#6035
patience
Joined: Mar 2011
Posts: 1,068
Likes: 0
And if so, how soon with this happen?
06-13-2012 | 05:31 PM
#6036
Gets Weekends Off
Joined: Feb 2011
Posts: 820
Likes: 0
I think over the next 5 years, the regionals will either become wholey owned or tied tightly to a major, with flow up agreements. Its the only way they can maintain the status quo of the current system and prevent the entire card stack from falling.
PNCL is the first step, I could see Republic spinning off CHQ and UAL bailing them out of CH11. AWAC is already tied to USAIR. Skywest might be the only big one left that is independent and that is IF they can stop the bleeding. TSH is the only one I dont have enough info on, but it seems DAL and UAL like their Gojetz product, at least UAL.
PNCL is the first step, I could see Republic spinning off CHQ and UAL bailing them out of CH11. AWAC is already tied to USAIR. Skywest might be the only big one left that is independent and that is IF they can stop the bleeding. TSH is the only one I dont have enough info on, but it seems DAL and UAL like their Gojetz product, at least UAL.
06-13-2012 | 05:50 PM
#6037
patience
Joined: Mar 2011
Posts: 1,068
Likes: 0
I think over the next 5 years, the regionals will either become wholey owned or tied tightly to a major, with flow up agreements. Its the only way they can maintain the status quo of the current system and prevent the entire card stack from falling.
PNCL is the first step, I could see Republic spinning off CHQ and UAL bailing them out of CH11. AWAC is already tied to USAIR. Skywest might be the only big one left that is independent and that is IF they can stop the bleeding. TSH is the only one I dont have enough info on, but it seems DAL and UAL like their Gojetz product, at least UAL.
PNCL is the first step, I could see Republic spinning off CHQ and UAL bailing them out of CH11. AWAC is already tied to USAIR. Skywest might be the only big one left that is independent and that is IF they can stop the bleeding. TSH is the only one I dont have enough info on, but it seems DAL and UAL like their Gojetz product, at least UAL.
06-14-2012 | 05:40 AM
#6038
Gets Weekends Off
Joined: Feb 2011
Posts: 820
Likes: 0
the model is not sustainable in its current form for the operators. However it is required by the majors and sustaining it will be cheaper than losing it. Just my guess, but I see more exclusivity to the regional airlines, since majors will be pumping money into them, and wont want to pump money into someone that will be also doing business with their competitor. For this reason, I see some airlines just cutting out the middle man and using the wholy owned mores. Staffing will be easier as well if they flow up wholy owned airlines.
There will never be a shortage at the majors level ever, never ever ever ever ever. The drunks, 3x failed checkride, felon, weirdos will never ever ever get hired at a major airline, unless they flow up of course. However the regionals I assume will have a really hard time over the next 5 years, but that is easily fixed, say for example AA took 50% or even 75% of all new hires from Eagle, then Eagle would never have a recruiting problem, I think this type model will be seen everywhere.
There will never be a shortage at the majors level ever, never ever ever ever ever. The drunks, 3x failed checkride, felon, weirdos will never ever ever get hired at a major airline, unless they flow up of course. However the regionals I assume will have a really hard time over the next 5 years, but that is easily fixed, say for example AA took 50% or even 75% of all new hires from Eagle, then Eagle would never have a recruiting problem, I think this type model will be seen everywhere.
06-14-2012 | 06:02 AM
#6039
Gets Weekends Off
Joined: Feb 2011
Posts: 820
Likes: 0
well I guess I know who the PBS vendor will be at Eagle.
Airline Crew Planning Solutions - Advanced Optimization Systems, Inc AOS.us 732-390-8460
We are listed as a customer.
Airline Crew Planning Solutions - Advanced Optimization Systems, Inc AOS.us 732-390-8460
We are listed as a customer.
06-14-2012 | 09:39 AM
#6040
Gets Weekends Off
Joined: Jan 2007
Posts: 224
Likes: 0
well I guess I know who the PBS vendor will be at Eagle.
Airline Crew Planning Solutions - Advanced Optimization Systems, Inc AOS.us 732-390-8460
We are listed as a customer.
Airline Crew Planning Solutions - Advanced Optimization Systems, Inc AOS.us 732-390-8460
We are listed as a customer.
"… We have had the ACOS in operation for approximately 4 years (since 2001), and they have performed exceptionally for us from the beginning. We value the close relationship we have developed with AOS, and greatly appreciate the help provided by them as our operations have changed and evolved into where we are today..."
- Juan P. Norat, Sr. Analyst, American Eagle Airlines.
- Juan P. Norat, Sr. Analyst, American Eagle Airlines.
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