AA/US not merging??

[redflyer65]

Take this with a ton of salt, since I heard it mid-Pacific on the air-to-air freq., but someone on a business jet with an internet connection said he just read that the AA board decided to not accept US's merger plan, and wanted to emerge from bankruptcy as a stand-alone company. Anyone else hearing the same thing? Or was it a case of pulling the legs of the AA and US crews listening?

HAL

Guys on a business jet? Sounds fishy. You sure it wasn't you on the internet up front? It's okay. You can come clean.

RF

 

[dirkdigler]

The new company is going to be called turducken. American is the turkey airways is the chicken and America west is the duck. So airways gets absorbed by american the turkey and then america west the duck finally gets absorbed by the chicken and the turkey. And then everyone eats it and throws up.

uke:

 

[zasca]

I don't think a company in bankruptcy has a board of directors. No more stockholder representatives. It's just management vs. Creditors and the judge approving the deal. It's why the top executives get to reward themselves with all that equity upon exit. I'm sure Horton is fighting tooth and nail to negotiate himself a nice big check in any deal involving merger before bankruptcy exit.

 

[livin'thesim]

My best friend's sister's boyfriend's brother's girlfriend heard from this guy who knows this kid who's going with the girl who saw Ferris pass out at 31 Flavors last night. I guess it's pretty serious.

 

[AA717driver]

The AMR Board of directors don't get to decide anything since they chose to go BK and stiff the creditors. They will decide. Not management.

End of (rational) discussion.

TC

 

[Question4U]

Take this with a ton of salt, since I heard it mid-Pacific on the air-to-air freq., but someone on a business jet with an internet connection said he just read that the AA board decided to not accept US's merger plan, and wanted to emerge from bankruptcy as a stand-alone company. Anyone else hearing the same thing? Or was it a case of pulling the legs of the AA and US crews listening?

HAL

Don't you think if he read it on the Internet we would be able to read it to?

 

[FDJ2]

Take this with a ton of salt, since I heard it mid-Pacific on the air-to-air freq., but someone on a business jet with an internet connection said he just read that the AA board decided to not accept US's merger plan, and wanted to emerge from bankruptcy as a stand-alone company. Anyone else hearing the same thing? Or was it a case of pulling the legs of the AA and US crews listening?

HAL

I would not be surprised if AA emerges as a stand alone, so did Delta and Northwest, but I would be surprised if they remain a stand alone. In order for AA to succeed, they'll ultimately need to merge with someone, probably LCC. Without a merger of some sort, they will not have the market breadth to survive long term and will probably shrink and revisit BK.

 

[Metrojet]

I heard it too. The guy was very convincing. Now it appears he was just an ass. He had the poor AA guys going. Now I'm guessing he was a USAir guy trying to gauge a reaction from the AA guys. Classless.

So you and Hal were flying the same trip together and when you both get home, the first thing u do is log onto to FI.com to report what u heard about some other airline????

OK -

Metrojet

 

[Metrojet]

Take this with a ton of pepper. I to heard this. I heard it mid-atlantic on the air-to-air freq., but this time someone in a blimp with an internet connection said the same thing as the guy in the business jet.

M

Correction to my last post - Dan and Hal are both on same trip - when they hear the news about US/AA - so they log on to WI-FI to see who can be the first to post this on FI.com!!!!!!

Metrojet

 

[igneousy2]

Take this with a ton of salt, since I heard it mid-Pacific on the air-to-air freq., but someone on a business jet with an internet connection said he just read that the AA board decided to not accept US's merger plan, and wanted to emerge from bankruptcy as a stand-alone company. Anyone else hearing the same thing? Or was it a case of pulling the legs of the AA and US crews listening?

HAL

I think that the gameplan for AMR will be to emerge from BK first, then do the merger out of BK. This is nothing really new, this has been their publically stated desire. (the part about emerging from BK before entertaining any ideas of merger with anybody) It makes sense though, it allows them to negotiate from a position of greater strength, getting a better deal for AMR shareholders.

What will be interesting to me is if the creditors committee accept a management proposal prior to the end of the 12/28 exclusivity period. If they don't, I think you'll start to see the offers for pieces of AMR in early January.