Delta and TPG look To put bid on AMR Corp
01-16-2012, 07:33 PM
#251
Gets Weekends Off
Joined APC: Sep 2008
Position: Speaking French
Posts: 385
So the "big three" really become UAL, DAL and US Airways while American Airlines disappears ?
US Airways in its current form or even with some of the scraps of AA, doesn't seem to me likely to become the third mega-carrier. If anything, U would merge with AA and still retain the AA brand, but at that point what would be the point of giving potentially the best tidbits of AA to Delta, thus ensuring the remaining AA/U stew is that much weaker as a competitor to them down the road ?
I suppose anything's possible, but it doesn't add up for me. If anything, I think AA will make a deal with TPG/U to merge AFTER they clear chapter 11 and the AA brand will become brand #3. Perhaps then a strengthening of the One World network. They have 180 days of exclusivity to soldify their business plan. Additionally, you'd think the secured creditors would be more in line with working WITH current AA management, instead of plotting to screw them down the road. The unsecured creditors who have at least some influence include the three unions who could muck up any show that screws them, so that's another reason for delicacy going down the road regarding creditors willingly feeding the circling sharks, only to be caught up as snacks in a feeding frenzy they hadn't planned for.
US Airways in its current form or even with some of the scraps of AA, doesn't seem to me likely to become the third mega-carrier. If anything, U would merge with AA and still retain the AA brand, but at that point what would be the point of giving potentially the best tidbits of AA to Delta, thus ensuring the remaining AA/U stew is that much weaker as a competitor to them down the road ?
I suppose anything's possible, but it doesn't add up for me. If anything, I think AA will make a deal with TPG/U to merge AFTER they clear chapter 11 and the AA brand will become brand #3. Perhaps then a strengthening of the One World network. They have 180 days of exclusivity to soldify their business plan. Additionally, you'd think the secured creditors would be more in line with working WITH current AA management, instead of plotting to screw them down the road. The unsecured creditors who have at least some influence include the three unions who could muck up any show that screws them, so that's another reason for delicacy going down the road regarding creditors willingly feeding the circling sharks, only to be caught up as snacks in a feeding frenzy they hadn't planned for.
If it comes to pass, American would most likely be the surviving name, better brand recognition.
01-16-2012, 07:39 PM
#252
Gets Weekends Off
Joined APC: Aug 2010
Posts: 2,530
They own them as long as CAL continues to let them fly them. In fact, there's no way CAL management would let CAL mainline fly them. They simply make too much money by doing so. Sucks, but it is what it is.
01-16-2012, 08:12 PM
#253
Gets Weekends Off
Joined APC: Apr 2011
Posts: 351
So the "big three" really become UAL, DAL and US Airways while American Airlines disappears ?
US Airways in its current form or even with some of the scraps of AA, doesn't seem to me likely to become the third mega-carrier. If anything, U would merge with AA and still retain the AA brand, but at that point what would be the point of giving potentially the best tidbits of AA to Delta, thus ensuring the remaining AA/U stew is that much weaker as a competitor to them down the road ?
I suppose anything's possible, but it doesn't add up for me. If anything, I think AA will make a deal with TPG/U to merge AFTER they clear chapter 11 and the AA brand will become brand #3. Perhaps then a strengthening of the One World network. They have 180 days of exclusivity to soldify their business plan. Additionally, you'd think the secured creditors would be more in line with working WITH current AA management, instead of plotting to screw them down the road. The unsecured creditors who have at least some influence include the three unions who could muck up any show that screws them, so that's another reason for delicacy going down the road regarding creditors willingly feeding the circling sharks, only to be caught up as snacks in a feeding frenzy they hadn't planned for.
US Airways in its current form or even with some of the scraps of AA, doesn't seem to me likely to become the third mega-carrier. If anything, U would merge with AA and still retain the AA brand, but at that point what would be the point of giving potentially the best tidbits of AA to Delta, thus ensuring the remaining AA/U stew is that much weaker as a competitor to them down the road ?
I suppose anything's possible, but it doesn't add up for me. If anything, I think AA will make a deal with TPG/U to merge AFTER they clear chapter 11 and the AA brand will become brand #3. Perhaps then a strengthening of the One World network. They have 180 days of exclusivity to soldify their business plan. Additionally, you'd think the secured creditors would be more in line with working WITH current AA management, instead of plotting to screw them down the road. The unsecured creditors who have at least some influence include the three unions who could muck up any show that screws them, so that's another reason for delicacy going down the road regarding creditors willingly feeding the circling sharks, only to be caught up as snacks in a feeding frenzy they hadn't planned for.
Lets not forget the new UAL! you guys don't think they are going to sit on there butts while DAL and LCC get all the goodies do you? I bet there will be more articles about potential buyers soon enough.
01-17-2012, 12:41 AM
#254
Gets Weekends Off
Joined APC: Oct 2006
Position: CRJ200 Right
Posts: 112
I have just been hired at a regional airline operating for U.S. Airways. if AA did happen to get bought out by DAL or US what would this most likely mean for the regional airlines flying under these carriers?
01-17-2012, 01:44 AM
#256
Weekend and Holiday Pilot
Joined APC: Jan 2007
Position: Sippin' at the Troubadour
Posts: 1,142
01-17-2012, 01:46 AM
#257
Gets Weekends Off
Joined APC: Jun 2007
Posts: 1,357
My personal total speculation opinion is Delta will emerge as the Surprise owner of AMR. Delta wants AMRs Latin American markets and Miami. To make the deal happen, they will give up Europe assets and slots to USAir and get rid of ORD to make United happy. They will give some New York slots to the Low Cost carriers and maybe some LAX slots as well. They will gain Latin America, the fastest growing economy and travel market in the world. Just my opinion of the surprise outcome. Of course I could be totally wrong.
01-17-2012, 04:56 AM
#259
Can't abide NAI
Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 12,049
No one knows what might happen to the mainline players yet... . My bet is, not much. This bankruptcy is going to resemble a loan modification more than anything else (IMHO). If your regional operates mostly < 70 seats, it is going to be tough to survive. > 70 and the odds improve.
But, providing you advice is easy. Due to their lack of scope, the regional airlines are going to be a tough place to eek out a career. Stability will have everything to do with your management's abilities (Jerry Atkin at Skywest does well). You'll want to get involved in every activity you can to get on at a major as soon as the door opens.
Last edited by Bucking Bar; 01-17-2012 at 05:10 AM.
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