Is North Texas-based American Airlines in Permanent Decline ? (Houston, Dallas: real estate, promotional)

[EDS_]

Originally Posted by JimBaker488

I can't imagine any domestic carrier financially capable of acquiring AMR, unless it would be Southwest and that seems very unliley to happen for a whole vareity of reasons ? Now if Congress were to permit M&As of American-based airlines by foreign-based carriers, but that's not going to happen.

If this works like AA hopes they will more likely be a buyer than a seller I'd bet.

[JimBaker488]

Originally Posted by EDS_

If this works like AA hopes they will more likely be a buyer than a seller I'd bet.

I doubt that American will have 2 nickels to rub together to buy somebody with after exiting chapter 11 , but even if they did the only realistic prospect would be US Airways which doesn't make sense because they'd just get their lunch handed to them everyday @ Phoenix & Vegas by Southwest.

[loves2read]

Teachers in TX are not unionized for the thousandth time!
American pilots are overpaid and it was the union's action in saying it was not going to meet again but go directly to arbitration that probably made the Board throw in the towel
the Board has wanted to go to bankruptcy for years and only the strength of Arpey stopped it--
he has a very old-fashioned notion that AA owed the retired employees the promises they were made which filing for bankruptcy will erase...
We fly American because it has the best service where we fly--but I know people who were long time workers (not pilots) for United, Continental, and Delta who suffered a great deal with those airlines went through bankruptcy--
and I know others who are retired AA employees who are going to be stung just as badly--
many senior employees in any area--machinists, flight attendants, pilots, administration--benefited from the years AA rules the skys but management stumbled when it gorged on TWA
Coming before the 9/11 disaster for the airline industry as a whole and then the rise of energy costs were two bullets AA could not dodge...
Carty made the decision to buy/merge w/TWA and it was a big mistake--but Carty never listed to anyone but himself anyway....from what I understand...

[mikeh19468]

Wonder if the lobbyists will be trying to push for an extension of the Wright amendment to prop up AA while trying to come out of Ch. 11. Hope not, as I'd prefer to have more choices out of DFW....

[Lakewooder]

The UT guy (Arpey - a friend of mind dated him back then) is out for a Baylor/SMU guy..

Thomas W. Horton

Horton holds an MBA degree from the Cox School of Business at Southern Methodist University and graduated with a BBA degree, magna *** laude, from Baylor University...he also serves on the Executive Board of the Cox School of Business at SMU.

[Philip T]

***?

must have meant come loudly?

Anyway -- Sure, sure an SMU MBA will fixy this right up.

[galore]

Originally Posted by loves2read

Teachers in TX are not unionized for the thousandth time!

LOL, you immediately stumbled into my trap!

And, BTW, did you forget your own post from Teachers unions in Texas ?

While they may not be powerful, they sure exist. Maybe under a slightly different moniker. Tomato. Tomatoe.

[JimBaker488]

And then there were none.
Until Tuesday, American Airlines was the only U.S. legacy airline that hadn’t sought bankruptcy protection, a feat of great pride for the airline. It came close several times, but pulled up safely on each occasion against intense financial headwinds that had tossed rivals like United, Delta and Northwest to the mercy of courts and creditors.
Editorial: Why American Airlines
&&&&&&&&
IMO AMR management was prideful to the point of being stupid and foolish. They should have made this move a long time ago.
BTW how does the Dallas Morning News get off charging a subscription fee to its readers ? This story in that paper this morning thankfully is a freebie, but even the NYTimes gives its readers 20 free reads a month
before a charge kicks-in.

[synchronicity]

Originally Posted by JimBaker488

Now if Congress were to permit M&As of American-based airlines by foreign-based carriers, but that's not going to happen.

To paraphrase from the Beastie Boys - "I'm tryin' to tell you all, it's Cabotage!"

(OK, technically, operations domestically by a US based subsidiary of a foreign corporation might not be considered cabotage, but we're hitting shaky ground there)

[EDS_]

Originally Posted by JimBaker488

I doubt that American will have 2 nickels to rub together to buy somebody with after exiting chapter 11 , but even if they did the only realistic prospect would be US Airways which doesn't make sense because they'd just get their lunch handed to them everyday @ Phoenix & Vegas by Southwest.

They have $4+ billion in cash right now. According to the aviation press US Air and AA would make a really bad fit.

Generally, companies that head into Chapter 11 with some cash and a long term plan that the court sees as viable are allowed to emerge with most of that cash. It will be interesting to see what AA's plan is:

1. Do they want to retrench and emerge smaller
2. Do they simply want to re-set union wages, no one can argue with a straight face that AA's unions haven't been out of line for years, and emerge much as they have been tracking otherwise - buy a bunch of new fuel efficient planes and make money on longer routes etc.
3. Do they look to acquire another airline
4. Do they look to be acquired

It now looks like not filing for Ch. 11 years ago - as the pilots and others began to lose touch with reality - was a mistake.