AAMRQ: TPG, US Airways (LCC) and Delta (DAL) consider bids for AMR Corp-- WSJ ($0.36)
#226
Join Date: Aug 2009
Location: SLC
Programs: AA EXP, Marriott Plat
Posts: 616
The only way US Air will merge with AA is if US Air bondholders, who know their bonds are highly likely to be nonredeemable over the long haul, decide to pony up new cash to get AA, so they can exit the US Air holdings and make someone else the bag-holder US Air bondholders are now. US Air has a negative net-worth using GAAP. In today's current economic climate, very tough to find new bag-holders with deep pockets. It can be done and deals like this have been done in the past, but very unlikely, especially in today's business climate.
#227
Join Date: Jul 2009
Location: AUS / DXB
Programs: BA Silver | AA LT Gold | EY Silver | Marriott LT Titanium
Posts: 1,838
IF US were to merge with AA, the chances of the combined entity remaining in OW are fairly high in my estimation. Given the UA/CO combination, its status as the largest North American carrier, and its prominent membership in *A, US has effectively become a *A 'orphan' in North America. It would make absolutely no sense (and would possibly not pass antitrust muster) for a combined US/AA to join *A.
#228
Suspended
Join Date: Aug 2003
Location: SEA
Posts: 12,485
IF US were to merge with AA, the chances of the combined entity remaining in OW are fairly high in my estimation. Given the UA/CO combination, its status as the largest North American carrier, and its prominent membership in *A, US has effectively become a *A 'orphan' in North America. It would make absolutely no sense (and would possibly not pass antitrust muster) for a combined US/AA to join *A.