Delta CEO on CNBC

[Linedriver]

What "possible opportunities" was Anderson speaking of concerning AA bankruptcy?

 

[ACL65PILOT]

I will be very brief.

Assets in a fragmentation of AMR

A purchase of another airline (ALK/B6) while AMR is tied up.

 

[Captain Fulough]

RJs at Eagle?

 

[ZeroThRUST]

Look for larger DL presence in MIA.

 

[johnsonrod]

What "possible opportunities" was Anderson speaking of concerning AA bankruptcy?

Simple. He was talking about cheaper London real estate...

 

[Schwanker]

Good deal on "near new" ERJs!!!

 

[Diesel-9]

DFW Base

 

[Andy]

Assets in a fragmentation of AMR

Fragmentation of AMR? ... I'll take some of what you're smoking ...

 

[fam62c]

Fragmentation of AMR? ... I'll take some of what you're smoking ...

If the creditors get a better deal from a competing plan that breaks AMR up and sells the pieces to several carriers that could happen. An airline like LCC could introduce a plan to aquire most of AMR but divest some parts to other carriers to simplify the fleet, reduce route overlap and avoid antitrust issues. The creditors want the best deal they can get and a plan that competes with AMR management's plan may give them that.

I'll be amazed of one or more carriers don't jump into the process with plans to aquire all or part of AMR. If nothing else, these carriers can make it more difficult and expensive for AMR management to get a sweetheart deal with the creditiors and come out of bankruptcy with too many cost advantages.

AMR management has already said that AMR will come out of this as a smaller airline, they may be the ones willing to sell off some parts if push comes to shove to fend off outside offers and give more to the creditors. I would say that fragmentation is a very real possibility here. For many of these creditors an equity stake in a new AMR that will be smaller than DAL and UAL may not be that attractive, cash is king.

 

[msmb]

Alaska purchase would cost more than even "Mother Delta" could afford.