AMR Corporation

And Then There Were 3 (Or 4, If You Count Southwest). American-US Airways Merger Official

Though pretty much a foregone conclusion at this point, the AMR bankruptcy judge officially signed off on the antitrust settlement between American Airlines/US Airways and the DOJ. I had seen an interesting graphic the Wall Street Journal prepared a few weeks ago but forgot to post it, so today’s “news” seemed like a good excuse.  Here’s the link, it’s just shy of a 2 minute walk down deregulated airline history lane.  Click on Animation: Airline Mergers  

American Airlines-US Airways Merger Development To Be Announced Shortly

American Airlines and US Airways are getting ready to make an announcement in relation to the merger.  Based on the bread crumbs I’ve seen, there are only three reasons I can foresee: 1.  They’re calling off the merger. 2.  They settled with DOJ. 3.  They’ve convinced the state of Texas to drop their objections to the merger. Since they just got through approving an extension of their exclusivity period to emphasize they’re committed to going to trial, that would lead me to believe it’s not #1.  And yet, if DOJ […]

American Airlines Bankruptcy Judge Neglects To Rule On AMR Exit Plan

In the latest mini-development in the American Airlines/US Airways merger snafu (brought to us by our friends at the DOJ), the bankruptcy judge neglected to rule on the motion for AMR to leave bankruptcy. I can’t say I’m an expert on bankruptcy law, but there are a bunch of interesting propositions here.  First, from something I read earlier, American is supposed to be past the statutory limit a company can stay in bankruptcy protection. The judge also has the right (I believe) to allow the creditors to submit reorganization plans […]

The First Words From American/US Airways On The DOJ Lawsuit

I meant to post this yesterday when I got the below e-mail from Doug and the folks at “New American Arriving”.  I received a mass e-mail from the good folks at US Airways/American Airlines detailing their thoughts on the DOJ lawsuit filed yesterday.  First, the text of the letter: As US Airways continues to pursue a potential merger, I want to keep you updated as developments occur.     The DOJ has unfortunately just announced that it intends to try and block our proposed merger with American Airlines. I am extremely […]

American Airlines CEO Tom Horton Gets His $20 Million Severance Approved

And this contributor to Forbes really doesn’t like it.  No doubt, it’s an odd situation.  As the final bankruptcy plan is sent out for creditor approval, everyone still holding American debt appears to be in position to get 100% of their money.  That doesn’t mean there weren’t some losers in bankruptcy (the union employees, for example). I do think Tom Horton has done a good job navigating American Airlines through bankruptcy.  IMO, he got Doug Parker at US Airways to “overpay” in the resulting merger, with AMR shareholders getting 72% […]

Details Emerge On Exit Package For American Airlines CEO

This post won’t be riveting material for many of my readers, but I have been curious for quite some time what American Airlines’ CEO Tom Horton was getting for an exit package as a result of the merger with US Airways. I had been discussing exactly this matter with View From The Wing a few weeks ago. We were both certain that Tom Horton made out better if American edited bankruptcy and Tom either continued to lead the airline or effected a merger outside of bankruptcy. And, when details emerged […]

More Clarity On American Airlines/US Airways Merger

I listened in on the press conference that Tom Horton (American CEO) and Doug Parker (US Airways CEO) conducted this morning and picked up a few interesting nuggets.  In no specific order:   This was a theme that came up a number of times in the call.  Right aircraft, right place, right time.  Along with the combination of the fleets, American has a substantial number of new planes on delivery over the next few years.  They fielded a question during the call about whether they could take delivery of all […]

The Worst Kept Secret: American Airlines And US Airways To Merge

It looks like the merger will be announced officially in the morning.  Wall Street Journal has some particulars on it. And, I think View From The Wing has done a great job of breaking down some of the various components of a merger. I had the chance to sit down with a good friend of mine who also happens to be very knowledgable about the airline industry.  He asked me what I thought about the merger. I think there’s plenty more thoughts to come, but I do think American and […]

You Can’t Believe Everything You Read About The American Airlines/US Airways Merger

I’ve been keeping mostly quiet about the potential American Airlines/US Airways merger.  Sure, there was a story recently about how they could announce the merger next week.  But, that story could have easily come out a month ago, or a month from now.  So, I chose not to write about it since there wasn’t much in the way of new information. But, then I came across this piece in the St. Louis Business Journal.  Among other things, it covers such facts as: Post-merger, American would have hubs at seven of the nine […]

Finally A Public Sign Of Something Positive For American Airlines’ CEO In Merger

The Wall Street Journal is reporting that Tom Horton, CEO of AMR (the parent of American Airlines) is in talks to become Chairman of a combined American Airlines/US Airways airline. This is a big indication to me that things are likely almost wrapped up for merger discussions.  Gary (View From the Wing) and I had a discussion about this in general a few weeks back.  You see, I was still a bit disillusioned, most likely because of my somewhat unseemly man-crush on American Airlines.  I figured there was still a […]