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Squawks & HeadlinesReport: US Airways gets boost in merger bid for American

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Report: US Airways gets boost in merger bid for American

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There's more chatter today regarding the prospects of a merger between US Airways and American Airlines, whose parent company AMR is restructuring under Chapter 11 bankruptcy protection. (www.usatoday.com) More...

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RRKen
Kenneth Schmidt 4
A very simplistic question keeps gnawing at my mind. If the current American administration could not profitably manage what they had, why on earth are they going out to enlarge the system? And with the same people running it? The same ones who were rewarded for running the system into the ground?

New paint jobs do nothing but spend more money than they have. Paint jobs do not make the changes to the system needed to survive. The old truck out back has no heater, a vacuum leak, and worn brakes. A new paint job will not make it run any better, or safer.
preacher1
preacher1 2
Well, I'm just on the outside looking in, BUT,I have a partiality to the current AA management a/k/a Tom Horton. He really had no alternative other than the the BR route after inheiting the can of worms that he did. Love him or hate him, he has done about as good as anyone could have, given what he had to work with. Had he been in that position earlier as in the days of Crandall/Arpy, etc. either this would have already been done or would have never had to happen in the first place. Regarding the creditors favorability toward the merger, I am like John here below, with that big a debt and no seat at the table, they have to look somewhere
HunterTS4
Toby Sharp 1
And let us not forget....this new "paint job".......goes all the way down to the napkins your drink gets served on to the cup that drink is poured into......mega bucks
canuck44
John Donaldson 3
Translation: $1.2 Billion in unsecured debt and no seat at the table. What other choice did they have if they are to get any value out of their "investment"? AMR did not have the cash to pay the interest on their debt that was about 160% of their capital at the time of filing and these guys will be the first to get cut loose on Chapter 11.

Essentially they are gambling the combined entity will return at least some dollars or make interest payments for some time rather than just eating it...without even getting frequent flyer miles.
preacher1
preacher1 2
$1.5billion
yr2012
matt jensen 1
Whose name will it be?
canuck44
John Donaldson 3
LOL...."American 'R US" or maybe PeoplExpress...reported to be looking to buy an airline.
yr2012
matt jensen 2
Since AAL unveiled the new paint job - one can only guess
HunterTS4
Toby Sharp 1
Whoever pays that bill! ha
faerrflier
kevin swiss 1
They had to paint those composite planes they are getting, whenever they are getting them.:) It would be the worlds largest airline with the world's largest amount of duplicate routes!:)