Tue, May 15, 2012
AMR Corp. To Develop Possible Consolidation Scenarios
American Airlines reports that has agreed with creditors to consider potential merger situations while it reorganizes under bankruptcy protection. Parent company AMR Corp. said the company had agreed to develop consolidation scenarios but that did not indicate it would pursue a deal with any particular party. This development may suggest that events could be unfolding quicker than the airline expected since US Airways increased its merger rhetoric.
The Associated Press reports that AMR’s CEO Thomas Horton has maintained that he wanted American Airlines to emerge from bankruptcy protection as an independent company. However, US Airways has lobbied AMR's creditors and lined up support from American's three unions for a takeover.
A message of “no confidence” was delivered on Friday by hundreds of pilots and other employees to AMR headquarters in Fort Worth and New York. The unions believe a combined company would cut fewer jobs and stand a better chance at competing with industry leaders United and Delta.
US Airways praised AMR's decision, saying a combination would benefit both companies’ employees and customers as well as creditors and investors. Standard & Poor's, citing a Bloomberg News report earlier Friday, said news that AMR would consider a merger as an alternative to its stand-alone restructuring plan made it more likely that US Airways will acquire or merge with AMR. S&P analyst Jim Corridore said a merger would fix US Airways' weak international network and give it size to compete with bigger rivals.
Also: A350-1000 Final Assembly, Barnstorming: ATC Privatization, Lithium Issue, Boeing Cuts, Tillamook C-27, Sywell Aerodrome, Massive Airship Mooney International Corporation unve>[...]
Aero-News Quote of the Day “Business travel to and within Europe continues to show its resiliency. The fact is that we’ve reached a new normal in managing risk, and bus>[...]
Braking Action Advisories When tower controllers have received runway braking action reports which include the terms “fair,” “poor,” or “nil,” o>[...]
Aero Linx: Army Aviation Association of America AAAA stands for Army Aviation Association of America. The mission of the AAAA is to support the United States Army Aviation Soldier >[...]
GBTA Polls Show Increased Business Travel Resiliency Following Terrorist Attacks More than 90 percent of U.S. and European business travel buyers now report that their company&rsqu>[...]