AA parent company AMR Corp files for Ch. 11 Bankruptcy

[drron]

Re: AA unit revenue up 4% in Septermber (would have been 4.4% if not for "challenges"

Reports that a new agreement has been made with pilots union board.Pilots still have to vote on it though.
Airline Biz Blog | Dallas Morning News Business writers blog about airlines, travel and items of interest to the aviation community

 

[Danger]

American Airlines says US Airways merger decision nearing | ATWOnline

 

[serfty]

Re: AA unit revenue up 4% in Septermber (would have been 4.4% if not for "challenges"

Reports that a new agreement has been made with pilots union board.Pilots still have to vote on it though.
Airline Biz Blog | Dallas Morning News Business writers blog about airlines, travel and items of interest to the aviation community

The pilots have now voted to accept the agreement.

Pilots approve six-year contract with American Airlines | Dallas-Fort Worth Airlines News - Business News for Dallas, Texas - The Dallas Morning News


Interesting ad-hoc interview with Horton:Horton: Heavy lifting on bankruptcy case is about completed | Airline Biz Blog

 

[drron]

Re: AA unit revenue up 4% in Septermber (would have been 4.4% if not for "challenges"

The plot thickens.Both the AA and US pilots unions have been invited to the merger talks.Seems like the merger occurring before AA exits bankruptcy may be more likely-
How do we interpret the involvement of the American Airlines and US Airways pilot unions? | Airline Biz Blog

 

[serfty]

Now asking for extension to Mid April

American Airlines & Co. seek more time to file a plan of reorganization | Airline Biz Blog

...Shortly after 6 p.m. New York time Thursday, American, parent AMR and the unsecured creditors committee submitted a joint request that American/AMR have until April 15 to file a plan of reorganization in the AMR/American bankruptcy case.

...

Seems a merger under Ch11 is not as big a probability as may have been proponed.

Not sure how that would affect the merger discussions NDA that expires in a week or two.

 

[v8Statesman]

The future of American Airlines may be clearer in just a few days.

Experts say American Airlines joining forces with US Airways could lift a struggling company into a profit-making machine.

It would create the world's largest airline.

http://www.kjrh.com/dpp/news/local_news/american-airlines-merger-could-be-reached-soon

Additional: They say that under the deal taking final shape, AMR shareholders would own slightly more than 70 percent of the new company's stock, but US Airways leader Doug Parker would be CEO.

 

[serfty]

If the merger does happen in ch. 11, it's going to be a case of the creditors taking as much short term profit as they can and bailing out before the agreements US have made with the AA unions comes into play en the merged entity is forced to re-enter Ch 11 protection a year or so down the track.

 

[v8Statesman]

If the merger does happen in ch. 11, it's going to be a case of the creditors taking as much short term profit as they can and bailing out before the agreements US have made with the AA unions comes into play en the merged entity is forced to e-enters Ch 11 a year or so down the track.

If the scenario plays out, I fear that will have long term negative repercussions for the aviation industry in the USA and to the lesser extent the world.

 

[drron]

Certainly does appear to be coming to a head.The big sticking point a month ago was that US wanted 30% of the merged airline and AA wanted 80%.It is pretty certain Parker will become CEO because the AA staff have always detested their management.However Parker took over America West in 2001 and became CEO of US when it merged with America West.So a note of caution to the AA staff-Parker has still not got an agreement with US FAs and pilots even though it is now coming up to 7 years since the merger.

A couple of other articles-
American Airlines-US Airways merger: Consumer FAQ

American Airlines and US Airways merger: The new CEO Doug Parker

We may all be able to use the US dividend miles for a while yet according to the first article.

 

[cove]

Friday's Wall Street Journal said it will be a bit diddicult to manage 9 hubs if AA merge with US Air but that their reach would be substantial in the USA. It misses the biggest growth area of China and South East Asia.
if AA want 80% and US Air want 30% the cake has to become 10% bigger!

 

[Sprucegoose]

How many insurance policies are invalidated because of this when they relate to travel on AA???

 

[Hvr]

How many insurance policies are invalidated because of this when they relate to travel on AA???

Another good reason to pay by credit card.