UPDATE 2 – April 26, 2012:
David Resnick, an investment banker for banking juggernaut Rothschild, Inc. said in the American Airlines bankruptcy hearing that the airline will consider a merger to give its shareholders the best deal:
“Stakeholders would want to ensure they are getting the highest possible value so they would want the debtor to look at alternatives to a stand-alone plan,” he said during testimony in U.S. Bankruptcy Court in Manhattan.
AA has no other option no matter what they think. They are starting to publicly realize this.
UPDATE – April 24, 2012:
Texas Chambers of Commerce Opposing US Airways Takeover Bid
Two of the largest business chambers in Texas, the Dallas Regional Chamber of Commerce and the Fort Worth Chamber of Commerce, issued a statement vehemently opposing US Airways intent to take over AA:
“We are greatly concerned by the potential impact that American’s union employees’ support of U.S. Airways’ intentions could have on both the bankruptcy proceedings and the local economy, and are opposed to any mergers prior to American exiting bankruptcy,” the CEOs said. “While it may seem to some that this is an option, it’s actually a damaging distraction that will disrupt American’s thoughtful process already in place to preserve the most jobs in Dallas/Fort Worth, and the state of Texas, both now and once American has exited bankruptcy.
“American Airlines’ brand equity stands alone. Aviation is a legacy industry in our region, and American’s headquarters in Fort Worth and presence at DFW Airport brings international recognition to North Texas . The company has provided jobs for generations of residents who live in communities all across the region. In addition, American Airlines has benefited dozens of communities with charitable contributions. A merger risks losing all that, and more.
“The best outlook for all American employees is for the airline to remain independent and headquartered in North Texas. We urge the creditors and unions working with American to not be distracted by the efforts of other carriers to disrupt the proceedings. Allow the bankruptcy process to run its course. American’s management has the exclusive right to submit a plan of reorganization until late September. Completing this essential step is in the best interests of American’s employees, creditors, Fort Worth, Dallas and all the communities served by American Airlines.”
US Airways Has AMR’s 3 Unions Firmly on its Side for Takeover
And it appears they’re not asking American’s permission.
US Airways filed a ‘Form 8-K’ with the U.S. Securities and Exchange Commission, which basically tells its shareholders they are about to do something big financially within the company. (to read the Form 8_K filing click HERE)
From the letter US Airways CEO wrote to the employees of the airline, it is clear they are attempting a hostile takeover of American.
CEO Doug Parker’s letter to US Airways employees (in part):
‘Today, we filed a statement (a form called an 8-K) with the Securities and Exchange Commission disclosing that we have signed agreements with the three unions that represent nearly 55,000 American Airlines employees. These unions are the Allied Pilots Association (APA), the Association of Professional Flight Attendants (APFA) and the Transport Workers Union (TWU), which represents all of American Airlines’ mechanics and fleet service employees. Shortly after our disclosure, these three unions issued a public statement announcing their support of a US Airways-American Airlines merger and that they have agreed to terms that would govern collective bargaining agreements for their members at the merged airline. I want to explain to you why we have done this and what it means.
First of all, today’s news does not mean we have agreed to merge with American Airlines. It only means we have reached agreements with these three unions on what their collective bargaining agreements would look like after a merger, and that they would like to work with us to make a merger a reality. To get to an actual merger, many more things must happen including gaining the support of AMR’s creditors, its management team and its Board of Directors. But this is obviously an important first step along that path and we are hopeful we can all work together to make this happen.’
US Airways has reached deal with American Unions
US Airways has reached an agreement with American Airlines 3 major employee unions: the Allied Pilots Association (APA), the Association of Professional Flight Attendants (APFA) and the Transport Workers Union (TWU).
In short, the agreement assures the unions their union contracts would remain and they would have collective bargaining rights. Something AA wanted to get rid of.
It’s no secret that US Airways has wanted to ‘merge’ with American. American has staunchly maintained their desire to remain a standalone company.
This would be considered a ‘hostile takeover’ of American if it proceeds in its present direction as US Airways would be taking control without consent of American Airline’s leadership.
Oooooo!! This is getting good. I wonder if Tom is stomping around the office today??