Go Back  FlyerTalk Forums > Miles&Points > Discontinued Programs/Partners > American Airlines | AAdvantage (Pre-Consolidation with USAir)
Reload this Page >

AAMRQ: TPG, US Airways (LCC) and Delta (DAL) consider bids for AMR Corp-- WSJ ($0.36)

AAMRQ: TPG, US Airways (LCC) and Delta (DAL) consider bids for AMR Corp-- WSJ ($0.36)

 
Old Jan 12, 2012, 3:50 pm
  #91  
Moderator: American AAdvantage
 
Join Date: May 2000
Location: NorCal - SMF area
Programs: AA LT Plat; HH LT Diamond, Matre-plongeur des Muccis
Posts: 62,948
The thread title has been changed, because, as mentioned in the OP moderator note added, it's three possible future bids from three entities: TPQ, US and DL.


The article titled "Delta, US Airways, TPG Assessing Bids for American Airlines Parent", by Gina Chon, Susan Carey and Mike Spector, begins

Delta Air Lines Inc., US Airways Group Inc. and private-equity firm TPG Capital are separately assessing possible bids for American Airlines parent AMR Corp., with hopes that its troubles present another opportunity for airline consolidation, people familiar with the matter said.

and

Any bid for AMR likely would come many months from now, after the company tackles a host of issues confronting it during bankruptcy proceedings.

The article in its entirety (subscription required) can be read here.
JDiver is offline  
Old Jan 12, 2012, 3:56 pm
  #92  
 
Join Date: Jan 2007
Posts: 2,905
Originally Posted by kingarthur

I think a private equity takeover would be a disaster.
See Blackstone's takeover of Hilton, and the current state of affairs with its loyalty program:

http://www.flyertalk.com/forum/hilto...hh-points.html
Ritz is offline  
Old Jan 12, 2012, 4:06 pm
  #93  
Suspended
 
Join Date: Jul 2011
Posts: 487
Originally Posted by eponymous_coward
Lack of aircraft? They could pick up the phone to Boeing and fix that. In fact, they have.
Actually, it would probably be the ILFC
OxonCantab is offline  
Old Jan 12, 2012, 4:35 pm
  #94  
 
Join Date: Aug 2006
Location: NorCal
Programs: Back to AA EXP for 2018 after 1 year on worthless Plat Pro
Posts: 161
Originally Posted by sonofzeus
If anyone knows where I can get 30:1 that AA does NOT emerge as a standalone, pls send a PM.
Count me in on these odds also.

It is more likely than not that they emerge as a standalone company. Why?

1. $4 billion in cash entering BK (none of my clients had that anywhere near that...)

2. Delta smoking crack if it thinks the DOJ will approve an acquisition

3. The Delta, US Air and other rumors actually HELP AA management negotiate new labor deals. Do you think AA captains will all want to join Delta as senior First Officers? How much of a "tenure discount" will the FA's have to take in terms of seniority in comparison to DL FA's? Can you say SkyTenure Peso's?

4. There is also a political angle here. Do you think the Texas Congressional delegations of either the Dems or the GOP are going to be excited about seeing AA close down/severely downsize the Fort Worth HQ?

Not gonna happen, folks. Highly unlikely.
SuperBuck27 is offline  
Old Jan 12, 2012, 4:35 pm
  #95  
A FlyerTalk Posting Legend
 
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 100,334
Originally Posted by denCSA
That would be the worst possible outcome from a loyalty point of view. SkyPesos are terrible and DL elite treatment and benefits leave much to be desired. There's no chance a DL/AA in present form would receive approval, thankfully.
I agree that the DL FF program has lots of shortcomings, but I do not think that mistreatment of higher tier elites is one of them. As a DM, I feel well treated in general. Would I like to be able to confirm a long haul upgrade at the time of purchase for a lower fare? Of course. Would I like to see more low award availability in long haul business class? Of course again. Would I like to have more honesty and transparency? Yes again. however, as a DM, I have generally been well treated on upgrades, IROPs, exceptions, elite phone lines, etc. There are a bunch of AA policies regarding their elites that would not be changes I would like.
MSPeconomist is offline  
Old Jan 12, 2012, 4:42 pm
  #96  
 
Join Date: May 2005
Location: SEA
Programs: AS; Hyatt Globalist; Hilton Gold; NEXUS
Posts: 968
+1. For the Flyertalk crowd (and honestly, consumers in general), the best outcome of this is for AA to emerge from bankruptcy on its own.

A takeover by DL is never going to happen with the current DoJ.

A TPG takeover would very likely devalue AAdvantage significantly. I've seen it wrt HHonors and Blackstone, to the point where I'm currently wondering why I even bother booking personal stays with them instead of Priceline. I seem to get similar treatment as a Gold with Hilton that I do as a PCLN customer at a random hotel, and I'm paying a whole lot less with Priceline. Casual customers would feel it in increased fees, decreased frequencies, and other penny-pinching moves.

US is an interesting possibility. The route networks compliment each other quite well, even if there is some slight overlap in the northeast, and PHX has enough slots controlled by US that would allow a combined AA/US to use it as a base for flights to Asia from the western US. I don't fly US nearly enough though to be able to judge how their penny-pinching might affect AA's F/J/Y products.
sullim4 is offline  
Old Jan 12, 2012, 4:46 pm
  #97  
A FlyerTalk Posting Legend
 
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 100,334
Originally Posted by CubsFanJohn
Interesting..... My guess is in the event of an AA break up (As of right now I don't see it happening) DAL is looking into what parts/assets they want to acquire. We shall see.
This sounds to me like doing to AA what AA did to TWA (RIP, you were a great airline while it lasted).
MSPeconomist is offline  
Old Jan 12, 2012, 5:17 pm
  #98  
 
Join Date: Aug 2009
Location: Denver,CO (Duh)
Programs: UA, AA, CO
Posts: 1,172
Originally Posted by sbrower
Or the new airline would be required to submit all fare pricing to a "fare pricing board" for 10 years to avoid monopoly pricing?
Of course, packed to the gills with people knowledgeable about the industry (IE former airline execs)
MileHighGuy is offline  
Old Jan 12, 2012, 6:17 pm
  #99  
Suspended
 
Join Date: Dec 2005
Posts: 9,916
Originally Posted by SuperBuck27

My handicap system:

1. AA comes out of BK as a standalone company: 70%
2. AA comes out of BK and is acquired by TPG: 20%
3. AA comes out of BK and is acquired by TPG/US Airways: 10%
4. AA comes out of BK and is acquired by DL: 0%

SB
I'll lower Option 1 to 50 percent and add in at 10% AA is broken up with WN taking over leases for DFW and ORD and shifting their DAL and MDW operations there, UA/CO acquiring ORD international flying opportunities and perhaps the MIA hub operations, DL acquiring JFK and LAX opportunities.

I would give Option 4 a 10% chance with some assets going to a second buyer - perhaps a different execution of the scenario above.
elitetraveler is offline  
Old Jan 12, 2012, 6:32 pm
  #100  
FlyerTalk Evangelist
 
Join Date: Nov 2001
Location: Wanting First. Buying First.
Programs: Lifetime Executive Diamond Platinum VIP with Braniff, Eastern, Midway, National & Pan Am
Posts: 17,308
Whiskey Tango Foxtrot??? Hasn't TPG lost enough money on bad aviation investments already???
Herb687 is offline  
Old Jan 12, 2012, 6:34 pm
  #101  
 
Join Date: Apr 2011
Location: New York
Programs: AA EXP 1.0mm, not sure where I am with hotels these days
Posts: 2,795
Originally Posted by Ritz
See Blackstone's takeover of Hilton, and the current state of affairs with its loyalty program:

http://www.flyertalk.com/forum/hilto...hh-points.html
The Honors program is only part of it. The acquisition was over leveraged, and was worked out about a year and a half ago. Blackstone had to kick in somewhere between $3-$5bn in equity, and the lenders forgave $5bn of the $23-$25bn of acquisition related debt (when Hilton went from public to private). And that debt was behind mortgage debt on owned hotels. Net cash flow during the downturn was used to keep the "deal" afloat at the expense of cap exp at the hotels and loyalty programs.

My company is in the same situation when one of its portfolios went private at the peak and developed liquidity issues. So I know how the portfolio quality suffered. That is my concern with a TPG takeover. They will acquire it, clean it up, and sell it to xxx airline group or go public in five years. And make more than a few bucks. Nothing wrong with that mind you, but as loyal customers, they say we are a priority (with their fingers crossed and behind their backs). Frankly, I'd rather see the existing team get a shot at raising capital independent of the sharks circling and making a go of it.
george 3 is offline  
Old Jan 12, 2012, 7:01 pm
  #102  
 
Join Date: Aug 2011
Posts: 116
4. There is also a political angle here. Do you think the Texas Congressional delegations of either the Dems or the GOP are going to be excited about seeing AA close down/severely downsize the Fort Worth HQ?

Not gonna happen, folks. Highly unlikely.[/QUOTE]


Well, they were pretty damn quiet when Jeffery packed up and called the movers to ship his office to Chicago from Houston after the CO/UA merger.
Photonerd71 is offline  
Old Jan 12, 2012, 7:11 pm
  #103  
Suspended
 
Join Date: Dec 2005
Posts: 9,916
Originally Posted by Photonerd71
4. There is also a political angle here. Do you think the Texas Congressional delegations of either the Dems or the GOP are going to be excited about seeing AA close down/severely downsize the Fort Worth HQ?

Not gonna happen, folks. Highly unlikely.

Well, they were pretty damn quiet when Jeffery packed up and called the movers to ship his office to Chicago from Houston after the CO/UA merger.[/QUOTE]

There will be a deal where the new owner will "commit" to maintaining x in Ft.Worth/Texas/DFW for X years. The politicians will crow that they got this major commitment, and then the buyer will renege within 3 years.
elitetraveler is offline  
Old Jan 12, 2012, 7:23 pm
  #104  
 
Join Date: May 2010
Location: SNA
Programs: AAdvantage Platinum
Posts: 529
When AA went into Ch11, my biggest concern was a takeover --of any sort. In each and every merger of airlines, customers ended up with less, and that goes for elites as well. The vultures are beginning to circle, lets hope AMR fends them off.
UALpremier is offline  
Old Jan 12, 2012, 7:44 pm
  #105  
 
Join Date: Mar 2006
Programs: AA EXP, UA 1K, F9 Elite, Hyatt Diamond, Hilton Diamond, Marriott Gold
Posts: 1,319
What really needs to be analyzed is each creditor on the committee one at a time. They all have a different agenda and it just depends which majority wins out in convincing the most creditors to side with them. That is scary, in the sense that AMR will have little say in its future direction. Hopefully its employees (with 3 seats on the panel) realize a healthy, independent AA is the absolute best option for them. As for the likes of Boeing, PBGC, etc. that ball is in the air...
denCSA is offline  

Thread Tools
Search this Thread

Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.