cactiboss

Exclusive: American Airlines creditors want to talk merger - Yahoo! Finance

eaglefly

Loos like confidence in AMR management is beginning to waiver. Considering the last 10 years, is this a surprise ?

They've already torpedoed 3 of 7 unsecured creditors (but they're labor and no one cares about that). Now outside creditors are joining the skeptical. I've said before, AMR management has created a trojan horse and if they fumble the ball (which appears increasingly likely), they'll simply be presiding over a fragmentation as all within the horse seek to abandon them as they will once again demonstrate their inability to RUN an airline.

AMR filed because they didn't want competitive labor cotracts, they wanted to GUT the contracts. Sure they had a lot of cash, but without the confidence of those that produce for them, others who must be paid start to become scared. Labor, the PBGC and now creditors, it seems management is running out of friends.

This may be the first indication this is about to unravel.

Tomahawk58

It's like you're desperately wishing for some sort of hostile bid. Why that is I can't quite comprehend for someone who's an AA pilot, since the work environment would be much more onerous with a US unsolicited offer. It's not going to happen!

Think more along the lines of a J6 plan which offer much better synergies.

Sink r8

Again, on some topics, I agree with your analysis.

This is about the money: "...They want AMR management to explore other options that may lead to a better recovery of their claims, including a potential combination with another carrier, according to people who requested anonymity because they were not authorized to speak publicly on the matter..."

eaglefly

No, I'm not wishing for that at all. My first choice would be a strong and vibrant AA. That however requires a managment team that inspires employees both in their company AND their managment instead of across the board alienation. You and the rest of management seem to think the same old philosophy of clubbing a smile on someone will do, as long as the financial bottom lines are met.

I'm sorry, but that just won't make it in this competitive environment where BOTH financials AND product quality are necessary. It seems some of the creditors now see the "plan" as questionable and might be identifying major red flags. A few more creditors and we've got a real problem. It seems some believe they can get a better return on their claims FROM SOMEONE ELSE. Since AMR couldn't even recognize the path they were taking this corporation on during the last decade (or didn't care), it seems that same lack of confidence is returning.......and spreading. You can blame the employees all you want, but the chorus is being joined by certain government sources, many in the media and now its surfacing at the creditor level.

Seems not everyone's dazzled with "plans" and "synergies" being too distracted choking on all the smoke and looking at cracked mirrors. Let's hope they can pull a rabbit out of a hat, because IMHO, that's what it will take to make it out of Chapter 11 in one piece.

Sink r8

Of course, the reason not everyone's not on board is because they view the plan as not aggressive enough, and if it's aggressive enough, it probably means you're not going to look it. That is to say "everyone but the three unions on the committee" is interested in increasing the value of their claim, and that "requires" talking consolidation.

Or maybe it would be sufficient if Horton let discussions of a merger drive the debt up, as Parker did for DAL, and they can sell the debt to some other suckers, and then there can be a serious discussion about to actually have AMR function as an airline.

eaglefly

I'd think its more the banks preferring to get a big return quickly, instead of shooting craps long-term, thus anything that facilitates a quick payout and as much $$$ as possible. As far as the plan, it's seems just a warmed over version of what they been doing all along..........just with cheaper labor and more outsourcing.

The average airedale could come up with that plan.

cactiboss

Believe me guys the last thing I want is a merger with AA, but this is about money, and money wants less competition to make sure a surviving AA or whatever it's called has more pricing power coming out of BK.
P.S nothing personal against not wanting to merge, just want us to have competent representation before we go down that road.

eaglefly

Well, we're hardly there yet. Again, the creditors commitee has reps with almost certainly different interests and it's not unreasonable for some creditors to promote one thing while others promote something else. At that point, the judge decides whose interests prevail. If Boeing and Airbus go for a stand alone AA as the best thing for them and the 3 banks all want a Gordon Gekko style breakup, I suppose the unions will also give their support toward one or the other and then the judge rules. In fact, I'd think AMR didn't woo either Boeing or Airbus only to have them turn against them in the very bankruptcy they planned ahead for and almost certainly laid out for both parties ahead of time. They represented to everyone (media included) that Chapter 11 wasn't on the table and then filed with everthing lined up far too quickly for that to be true.

It was a classic 4 billion dollar snookering.

Every party will make their pitch. The problem is that AMR expected hostilities from outside, but I'm not sure how prepared they are to defend themselves from within. Again.......and let's face it, these guys aren't making a whole lot of friends.

nancy33

No hostile bid just want to see US air pick them up take the seniority list split it take all the TWA people integrate them in the us air seniority list and then take all the American "were too good for you" pilots and staple them to the bottom. Poetic Justice?