FlyerTalk Forums - View Single Post - ARCHIVE: US LCC & AMR / AA Takeover / merger Rumors and Discussion (consolidated)
Old Jan 26, 2013 | 4:31 pm
  #2976  
edwards183
 
Join Date: Sep 2009
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Originally Posted by morrisunc
Again, the majority of posters in this forum are seriously detached from reality. Us made 800m profit in 2012. US is not going bankrupt and unlike aa - their CEO has built a sustainable model.

UA - CO will be a monster competitor once they get the kinks sorted out. It was a poorly executed integration. Douggie has done a great job at forcing aa to merger and obviously learned his lesson from the delta attempt. I doubt his leadership team will make as many mistakes as us-co.
Go to the 10K and look for the page that outlines debt obligations. LCC's unsustainability without some deus ex machina is quite evident. All that short term debt is poison, when the Fed eventually raises rates, LCC is in trouble. That along not engaging in derivatives for fuel seems very risky.

Let's face it, in the long term Parker needs this merger a whole lot more than a leaner, newer fleeted, better hubed AA does.
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