AAMRQ: TPG, US Airways (LCC) and Delta (DAL) consider bids for AMR Corp-- WSJ ($0.36)
#91
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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.
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.
#92
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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
http://www.flyertalk.com/forum/hilto...hh-points.html
#94
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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.
#95
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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.
#96
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+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.
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.
#97
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This sounds to me like doing to AA what AA did to TWA (RIP, you were a great airline while it lasted).
#99
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I would give Option 4 a 10% chance with some assets going to a second buyer - perhaps a different execution of the scenario above.
#100
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Whiskey Tango Foxtrot??? Hasn't TPG lost enough money on bad aviation investments already???
#101
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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
http://www.flyertalk.com/forum/hilto...hh-points.html
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.
#102
Join Date: Aug 2011
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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.
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.
#103
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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.
#104
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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.
#105
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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...