USAirways/American Rumor

[JAB31]

Big "announcement" in Oct? I keep hearing this but nothing concrete...any ideas what it may be?

 

[magrs]

Both will declare BK!

 

[St. Nic]

USAirways is being parted out, most of it will be gone. Parts of PHL and DCA will survive, probably the shuttle, maybe PHX- the rest will be flushed.

 

[JumpersAway]

USAirways is being parted out, most of it will be gone. Parts of PHL and DCA will survive, probably the shuttle, maybe PHX- the rest will be flushed.

Why flush the portions that make money and keep the one that loses the cash. Phoenix is one of the highest impacted regions of the economy following the housing collapse.................

 

[get2flyin]

Why flush the portions that make money and keep the one that loses the cash. Phoenix is one of the highest impacted regions of the economy following the housing collapse.................

Southwest Airlines doesn't agree.

 

[magrs]

I worked for both, take them both outside and shoot them, we'd all be better off!

 

[TWA Dude]

Ah, yes, that East-originating-wishful-thinking-merger rumor again. Bor-ring.

I wonder who's going to "hear" this rumor again next week and post it here?

 

[jmreii]

Can't be anything good otherwise they wouldn't be making any annoucements.

 

[Anonymous2]

AA will be downsizing to its current fleet of super 80's only. All other fleet types will be returned or sold. Eagle will be combined into mainline. USAirways will be be downsizing its entire fleet as well and will keep only 762's. They will code-share with AA on international segments, while keeping Piedmont as the only express carrier.

 

[ultrarunner]

Someone is going to take USAir out back and shoot it and AA will bury the carcass.

Anyway you slice it, a good thing!

 

[ACL65PILOT]

Yep, they are in talks for parts. It is more than just a rumor, problem is DAL might have goofed this up.

 

[AA717driver]

Yep, they are in talks for parts. It is more than just a rumor, problem is DAL might have goofed this up.

Goofed it up for AA or DAL?

TC

 

[ACL65PILOT]

Both. I am sure that JAL is much more important that any acquisition or merger with a domestic airline.

 

[Hair-on-Fire]

Hmmmm:

AMR boosts its cash coffers and shifts routes

AMR gets $2.9 billion in financing, builds hub capacity for international growth

On Thursday September 17, 2009, 8:45 am EDT

Companies: AMR CorporationGeneral Electric Co.
FORT WORTH, Texas (AP) -- The parent of American Airlines said Thursday it has obtained $2.9 billion in new financing and is making changes in its flight schedule to help cope with weak demand and declining revenue in the airline industry.


AMR Corp. said it has obtained $2.9 billion in extra funding, including $1 billion in cash from an advance sale of frequent flyer miles to Citigroup.

The Fort Worth, Texas, company says it received $1.6 billion in sale-leaseback financing commitments from GE Capital Aviation Services, a unit of General Electric Co., and $280 million in cash in a loan from GE Capital Aviation Services secured by aircraft.

Of the $1.3 billion in new liquidity, all but $55 million will be included in the third quarter 2009 cash and short-term investment balance.

AMR says it will strengthen its flight network by increasing capacity at hubs in Dallas/Fort Worth, Chicago, Miami and New York. Those cities, and Los Angeles, are key parts of the company's plan to benefit from closer cooperation with British Airways, Iberia and other partners.

The company said it will reduce operations at St. Louis and Raleigh/Durham, North Carolina.

American Eagle also announced plans to add a first class cabin to its fleet of 25 Bombardier CRJ700 regional jets and it signed a letter of intent with Bombardier Inc. for options to purchase 22 additional CRJ700 aircraft for delivery beginning in mid-2010.

The new CRJ700 aircraft will be fully financed.

"Today's announcement positions our company well to face today's industry challenges and allows us to remain focused on the future and on returning to profitability," said Gerard Arpey, chairman and CEO.

AMR said its capacity for 2010 is expected to increase by about 1 percent over this year, with domestic capacity flat and international capacity up about 2.5 percent.

Excluding the impact of cancellations this year from the H1N1 virus and the launch of Chicago-Beijing service in 2010 that was delayed from this year, mainline capacity in 2010 is expected to be roughly flat compared with 2009, the company said.

Employees affected by cutbacks will be allowed to relocate, the company said, although it expects the impact on employees to be minimal.

AMR will add 57 daily flights at O'Hare International Airport in Chicago, six new destinations from JFK International Airport in New York, two new daily American and Eagle flights at Los Angeles and 19 daily departures added to the airline's largest hub at Dallas/Forth Worth.

American and Eagle also will add 23 flights at Miami.

AMR shares rose $1.67, or 22.3 percent, to $9.02 in premarket trading.

 

[n757st]

So, if Airways and AMR were to get together, why order more CRJ-700s? They would already have access to over 100 86 seaters on the airways side. I think all these rumors with Airways are crap. I have also heard the rumors of an OCT announcement, but I heard it is a route realignment, probably related to the DCA-LGA slot swap.

 

[miaboeingcapt]

Anyone notice AMR and LCC stock today? AMR up 19.59% and LCC up 16.44% were every other airline is down. I can understand why AMR is up but why LCC?

 

[paulsalem]

Would AMR buy more CRJs if they were going to merge with Airways?

 

[ACL65PILOT]

Yes, I bet they would.

Also it makes sense to buy part of LCC. I do not see them buying all of it.

 

[tzskipper]

Yes, I bet they would.

Also it makes sense to buy part of LCC. I do not see them buying all of it.

How do you buy "part" of a company? Do you mean the purchase of assets (such as gates or the shuttle)?

S

 

[Monster Buck]

Both. I am sure that JAL is much more important that any acquisition or merger with a domestic airline.

AA is just trying to jack up the price Delta pays for JAL. Too dynamic for me to see all the good and bad of us owning a large part of JAL though. Fingers crossed.

 

[Metrojet]

Yes, I bet they would.

Also it makes sense to buy part of LCC. I do not see them buying all of it.

Yup -

AMR buying part of LCC

JetBlue buying the PHX hub.

JetBlue pilots agree to merge list using Nicolau Award.

AWE PHX Pilots start new Union because of Nicolau integration formula - 5 year Jetblue Captain now senior to 10 year PHX First Officer.

 

[get2flyin]

Yup -

AMR buying part of LCC

JetBlue buying the PHX hub.

JetBlue pilots agree to merge list using Nicolau Award.

AWE PHX Pilots start new Union because of Nicolau integration formula - 5 year Jetblue Captain now senior to 10 year PHX First Officer.

So the Easties get stapled on the the bottom of AA's list ala TWA (and subsequently furloughed) and the PHX hub merges with Jetblue in relative seniority order. That sounds pretty reasonable. How about the LAS crews? What's your vision for them, exactly?

 

[Jeff Helgeson]

You have to wonder...

AMR has been talking with JAL and the rumor about buying parts of USAir Ways and now the articles about AMR increasing their liquidity. I doubt AMR has raised that kind of cash to readjust their <existing> route system. It is going to be a tough winter for some and AMR has cash for any future garage sales.

 

[Sedona16]

I have a question for yall. If AA just borrowed against future payout of the Frequent Flyer program (like 2012 to 2015 or something like that), what happens when they dont have that revenue during that time period and have to start paying back large loans?

 

[Metrojet]

So the Easties get stapled on the the bottom of AA's list ala TWA (and subsequently furloughed) and the PHX hub merges with Jetblue in relative seniority order. That sounds pretty reasonable. How about the LAS crews? What's your vision for them, exactly?

get2flyin -

Nope, APA and USAPA have already agreed to conditions & restrictions - 10 year fences around all pre-merger bases.

A

Metrojet

 

[Metrojet]

So the Easties get stapled on the the bottom of AA's list ala TWA (and subsequently furloughed) and the PHX hub merges with Jetblue in relative seniority order. That sounds pretty reasonable. How about the LAS crews? What's your vision for them, exactly?

get2flyin -

Nope, APA and USAPA have already agreed to conditions & restrictions - 10 year fences around all pre-merger bases.



Metrojet

 

[ACL65PILOT]

I have a question for yall. If AA just borrowed against future payout of the Frequent Flyer program (like 2012 to 2015 or something like that), what happens when they dont have that revenue during that time period and have to start paying back large loans?

The hope is that by then the revenue stream will be large enough to compensate. DAL did the same thing with AMEX two years ago, so it is really not something new.

 

[get2flyin]

get2flyin -

Nope, APA and USAPA have already agreed to conditions & restrictions - 10 year fences around all pre-merger bases.

A

Metrojet

No way USAPA would ever agree to that. Based on their history, they will demand DOH without fences so they can get all the flying they're entitled to. They would hate the see the "Rookies" at AA try to steal their seats. Once it becomes clear that they aren't getting what they want, THEN they'll DEMAND a 10 year fence and blame the other side for refusing to negotiate. When that doesn't work they'll try to oust APA and insist on lifetime separate operations because Dallas is just a "Worthless Leisure Hub" and CLT and PHL shouldn't have to support it.

 

[AA717driver]

get2flyin -

Nope, APA and USAPA have already agreed to conditions & restrictions - 10 year fences around all pre-merger bases.



Metrojet

I don't believe APA members (more than 50% of which have been FO's for a VERY long time) having any appetite for this kind of deal.

They are still fuming about TWA getting too good of a deal.

We'll see.

TC

 

[80drvr]

get2flyin -

Nope, APA and USAPA have already agreed to conditions & restrictions - 10 year fences around all pre-merger bases.



Metrojet

Has anyone told APA about what they've agreed to yet? They haven't even staffed a committee to negotiate an integration, let alone agree to one.