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readytotaxi
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IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 9:17 am

Souce: London Sunday Times.

It is reported in the Business section of the newspaper today that "IAG is close to appointing an advisor following meetings with investment banks about the future of AA. IAG is anxious to protect their cost sharing venture on transatlantic routes.
If AA fell into the hands of a IAG rival it could be forced to leave the OneWorld alliance."
Walsh has said in the past that he considers the existing partnership as a pre-cursor to formal merger.
IAG declined to comment.

I would be surprised if Walsh would let this go without a fight after the years the two airlines have worked together.
Interesting times ahead.
you don't get a second chance to make a first impression!
 
lhr380
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 9:20 am

Using US as an example, if they did buy AA, I'd see US leave star and go with Oneworld anyway. Especially to tap Into the JBA and Transatlantic routes.
(The views on this site are my own and no one elses)
 
slcdeltarumd11
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 9:36 am

I guess its smart for them to plan just in case but i cant see them leaving one world.

The only extremely extremely unlikely scanrio i could guess would be a new alliance is formed and someone who buys AA puts them in that. I cant imagine that alliance could offer even close to what one world does anyway. Emirates would have to really want this to happen and they dont seem to be showing signs of wanting an alliance. Virgin atlantic, virgin america, virgin australia, emirates, AA/US, westjet something like that would be my best guess and im sure they could bring a few other airlines in who feel redundant to bigger brothers and be more of an asset in a new alliance particularly in Europe and Asia. They could bring in a few more airlines i bet but they would still be quite a bit weaker than one world.
 
miaami
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 1:23 pm

I was wondering when IAG and Oneworld might get involved. Perhaps a deal with TPG/IAG and OneWorld itself. Oneworld has a huge stake in the outcome of AA's reorganization. Horton has already been quoted as being open to a merger and I could see AA doing something post BK with one or more US carriers
 
kl911
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 1:47 pm

Quoting lhr380 (Reply 1):
Using US as an example, if they did buy AA, I'd see US leave star and go with Oneworld anyway. Especially to tap Into the JBA and Transatlantic routes.

Well, if US goes ahead and takeover AA, then the new US can go anywhere right? And about TA traffic, isnt that low yielding due to over capacity?

Why wouldnt US want to stay in STAR?
 
lhr380
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 2:13 pm

Quoting kl911 (Reply 4):
Well, if US goes ahead and takeover AA, then the new US can go anywhere right? And about TA traffic, isnt that low yielding due to over capacity?

The JBA with AA IB and BA makes each company a hell of a lot of money, and allows each other to cooperate really well on the routes to LHR MAD etc. Would US not want to tap into that, would provide a lot of feed into the Euro network and vis versa the longhaul network. At the moment, im under the impression US is going at it alone on the Transatlantic routes. It codeshares but it has no JBA JSA JV with its fellow star carriers. It would go from its current, say 1 flight to PHL from LHR, to 3, and have lots of feed from and to places like JFK and the current oneworld hubs.
(The views on this site are my own and no one elses)
 
etops1
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 2:15 pm

Can this hinder a US takeover attempt ?
 
commavia
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 2:18 pm

Quoting lhr380 (Reply 5):
Would US not want to tap into that, would provide a lot of feed into the Euro network and vis versa the longhaul network.

Absolutely. A hypothetical combined AA-USAirways would have every reason to stay in the current ATI/JBA and oneworld. That arrangement - which is already lucrative for AA and its partners - would be even more so by adding even more U.S.-Europe flying to the deal, particularly since at the moment USAirways is already on the outside looking in on Star's huge ATI/JBA deal, having long ago been crowded out by a growing/merged United-Continental.

Nonetheless, I suppose it does make sense for IAG to at least do due diligence on some sort of participation as a security guarantee to ensure they keep their AA distribution channel into the vast U.S. market. But again - I don't see any way that IAG would lose that partnership, regardless of whether AA merges with another airline or remains independent, anyway.
 
lhr380
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 2:27 pm

Quoting commavia (Reply 7):
particularly since at the moment USAirways is already on the outside looking in on Star's huge ATI/JBA deal

That did surprise me that they are not in the ATI
(The views on this site are my own and no one elses)
 
LAXdude1023
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 2:34 pm

The odds of AA leaving OneWorld even with a takeover are slim to none. Even if US and AA merge, the combined carrier would (without a doubt) be a part of OneWorld. I dont think IAG has anything to worry about.
It is what it is...
 
qf002
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 2:45 pm

Quoting LAXdude1023 (Reply 9):
I dont think IAG has anything to worry about.

Agreed. This is a PR move on IAG's part to make it clear that they will do what is necessary to retain AA's partnership. There is no doubt that Oneworld and the Atlantic JBA is where AA (or any merged carrier) belongs.
 
LJ
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 3:15 pm

Quoting commavia (Reply 7):

Absolutely. A hypothetical combined AA-USAirways would have every reason to stay in the current ATI/JBA and oneworld.

However, doesn't the ATI/JBA agreement stop when one of the parties is taken over? In the hypothetical case that US takes over AA I wonder if the ATI/JBA is still valid as one of the parties isn't there anymore and the scope of the ATI/JBA has changed. If you look at the AF/KL/DL situation you'll see a similiar situation where AF buys AZ, but before they can add AZ to the ATI they have to run through the whole procedure (again).
 
lhr380
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 3:45 pm

Quoting LJ (Reply 11):

Would that depend on who's operating license is taken over. Could US buy AA and use the AA operating license?
(The views on this site are my own and no one elses)
 
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readytotaxi
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 4:06 pm

Quoting lhr380 (Reply 12):
Could US buy AA and use the AA operating license?

Thats an idea, what would the lawyers say?               
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lhr380
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 4:15 pm

Quoting readytotaxi (Reply 13):

Looking at the America West - US thing. America West Brought - US, who's operating license are they using?
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readytotaxi
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 4:21 pm

Quoting lhr380 (Reply 14):

Blimey, its never simple,is it !
you don't get a second chance to make a first impression!
 
gizmonc
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 4:26 pm

Quoting lhr380 (Reply 14):
Looking at the America West - US thing. America West Brought - US, who's operating license are they using?

US Airways was the name that survived and US Airways Certificate was the one used... all US Airways tickets are 037.

Basically America West was disolved. Just like SWA with do with Airtran. Currently SWA and FL are on a joint certificate but FL is a seperate company operated by Guadalupe Holding Company which is wholly owned by SWA. FYI when former FL management and SWA management met to discuss the purchase the room at the hotel was used for the HOLDING COMPANY.
 
lhr380
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 4:40 pm

Quoting gizmonc (Reply 16):
US Airways was the name that survived and US Airways Certificate was the one used... all US Airways tickets are 037.

Simple then, if this was to go ahead, US buy AA, dissolve US Airways and be a stronger AA, with all the benefits AA currently has when it comes to JBA JVA ATI etc etc etc.

Personally I feel AA has the bigger name in the world compared to US.
(The views on this site are my own and no one elses)
 
aaexecplat
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 4:47 pm

There can be no doubt that whatever US can offer, IAG can offer so much more and assure more continuity than would be true in case of a takeover by US. I still think the US merger will happen, but it better happen after AA exits from bk so that they can either be the acquirer or at least have it be a "merger of equals"...
 
seatback
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 4:52 pm

Maybe IAG feels they could back AA in a rescue deal, secure up AA and then, after BK they bid for US...so essentially AA is in charge and not US.
 
boeing773er
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 5:02 pm

Quoting kl911 (Reply 4):

US would want to leave star because they are completely overshadowed by the new UA. Also if US would buy AA then UA and US would have a lot of overlap(ORD/LAX). Also I don't think the DOJ would allow the merger to pass if US had the intention to stay in Star.
Work Hard, Fly Right.
 
etops1
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 5:20 pm

What if IAG was helping US aquire AA?? We all know that after US aquires AA they will still be a member of oneworld. So IAG still wins . And they get a much stronger AA out of it .I don't know .I am just sayin. You never know whats being worked out behind closed doors .
 
BOACCunard
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 6:30 pm

Quoting lhr380 (Reply 12):
Could US buy AA and use the AA operating license?

Sure. Which company is the acquiring entity has nothing to do with which operating certificate stays.

In the case of the US-HP merger, HP was effectively the acquiring entity (just as US would be this time), but not legally, as it was structured as a reverse takeover; i.e., HP merged into a subsidiary of US and thus became a subsidiary of US, and the surviving entity was US (but HP was treated as the acquiring entity for accounting purposes). The certificate that stayed was US's.

Another example is the UA-CO merger, where UA acquired CO and was the surviving entity, but for various reasons, the CO certificate is the one that stayed (with the name changed) and UA's certificate was retired.

My suspicion is that if we see an AA-US merger, it will be structured a lot like the US-HP merger was, though I'm not sure whether the AA certificate or the US certificate would stay, as that seemingly depends on a variety of factors.
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oflanigan
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 6:33 pm

AA management sucks and everyone knows it. IAG must be worried that a US run AA might try to be the powerhouse in Oneworld and go it alone. Don't get me wrong that being in an alliance does have its benefits, but a US run AA might try to become a truly global airline and brand. I might be wrong.

Only reason anyone would still want AA run by the current AA management is so they can manipulate and exploit. Doesn't solve the issues AA has at home.
 
lhr380
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 6:40 pm

Quoting oflanigan (Reply 23):
Only reason anyone would still want AA run by the current AA management is so they can manipulate and exploit.

You really think thats the reason IAG are trying to help?

Quoting oflanigan (Reply 23):
AA management sucks and everyone knows it

They must of been doing something right to be one of the only big US majors to have only just gone into Cpt 11 for the first time, while others have been in and out a few times sometimes. Personally I think they have been doing very well under very tough conditions.

Quoting oflanigan (Reply 23):
but a US run AA might try to become a truly global airline and brand

Whats wrong with that? Thats a good thing. With assistance and cooperation from its alliance partners thats made even easier to do.
(The views on this site are my own and no one elses)
 
oflanigan
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 6:44 pm

Well then I hope they see the need to partner with US to form a New AA. Lets see how it plays out.
 
Context
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 8:23 pm

Two questions:

1. (To the OP) Would you please drop a link to the article? All I could find was http://www.marketwatch.com/story/iag...merican-airlines-report-2012-03-25

I know next to nothing about IAG, I think I'd benefit from the full article.

2. Anyone know off hand what fraction of pax AA carries across the pond for the BA/IB/AA JV?

Thanks!

(I hope someone has actual PAX estimates; flights/seats are helpful but don't give a picture of AA's value in the venture, their domestic connections notwithstanding)

[Edited 2012-03-25 13:27:15]
 
cjpmaestro
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 9:32 pm

I have to admit I know very little about IAG other than it's a foreign entity comprised of BA and IB. From what I read about their performance in 2011, BA ended the year profitable and IB ended with a loss particularly because of the instability in the Iberian peninsula and no frills travel in the region. Additionally, both are expected to be impacted by rising fuel prices. I'm just wondering what IAG can actually do being a foreign entity and also having to watch their own bottom-lines. To me, they should see the benefit of a combined US/AA and welcome US into One World and participate in the transatlantic venture. BA already flies to PHL, DCA and PHX and US flies to London from PHL and CLT, seems to me there could be some good feed and possibly the opportunity for IB to enter into a US hub/market. Then again, the article doesn't mention their opposed to a merger, so they could also be pushing for it. Only time will tell.
 
jfk777
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 11:03 pm

Quoting oflanigan (Reply 23):
AA management sucks and everyone knows it.

What makes USair's managers so "special" ? They still have two pilot seniority lists after 7 years of being merged.
 
etops1
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RE: IAG Eyes Rescue Deal For AA

Sun Mar 25, 2012 11:36 pm

It's not USAirways managements fault that the pilot group is separated . That's the pilots and unions fault . Management cannot interfere with union issues .
 
oflanigan
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 12:23 am

And with the Pilot issue in mind, I hope that APA and USAPA can come together and talk, constructively of course. Both are part of CAPA the Coalition of Airline Pilots Associations and maybe that relationship will work to both Unions benefit. I can dream right. What would be interesting is if they formed a close relationship before a merger and find a way to hose the former HP pilots again, which would be sad of course.
 
oflanigan
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 12:32 am

And maybe sucks was a little harsh. I'll take that one back. I like the AA product flew them in First just recently. On time, great service. But that comes down to the front line employees. They deserve the credit.
 
boeing773er
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 12:42 am

Quoting cjpmaestro (Reply 27):
BA already flies to PHL, DCA and PHX

This is news to me, since when did BA fly to DCA?

Just kidding, I think you meant IAD.
Work Hard, Fly Right.
 
airtechy
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 12:43 am

Since we heard that Delta had hired "advisers" re: the AA bankruptcy, they have been strangely quiet. I wonder when some new news will emerge from Atlanta?   

Jim
 
william
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 4:15 am

Since everyone here is so giddy for AA and US to merge, let me go ahead and say it. This a blocking move against USAirways. I guess IAG did not truly trust Parker when he spoke with them to get their blessing.
 
liftsifter
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 5:44 am

I think a Delta merger would prove to be very... interesting. An airline that just completed a merger, merging again. Especially considering Delta is an extremely large carrier right now, merging two of America's biggest carriers. That's a lot of paint!

The main concern here is: Will the metal AA livery remain?!?!
A300 A310 A319 A320 A321 A332 A333 A342 A343 A346 A380 B736 B737 B738 B744 B763 B77L B77E B77W B788 E190
 
Byrdluvs747
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 7:48 am

As I have stated many times, IAG will be involved in any AA buyout. I also count in TPG.

Delta has no horse in this race. Just look at how the DOJ and FCC **tch-slapped AT&T around when they tried to buy TMobile. They are in no mood to see airfare pricing controlled by only three airlines.

Despite what many US fanboys here think, the road ahead for US will be tough once IAG talks some sense to the creditors. IAG will bring along their financing partners, and I'm sure they can outdo US. If IAG and TPG combine, it's over for US.
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vv701
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 9:48 am

Quoting context (Reply 26):
Anyone know off hand what fraction of pax AA carries across the pond for the BA/IB/AA JV?

If you have the time to read it this comprehensive and excellent analysis of TATL traffic may answer your question:

http://www.msmaviation.com/publicdocs/Transat_Winter_2011_2012.pdf

I suggest you start at page 35.
 
AAplat4life
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 11:02 am

Quoting lhr380 (Reply 1):
Using US as an example, if they did buy AA, I'd see US leave star and go with Oneworld anyway. Especially to tap Into the JBA and Transatlantic routes.

Given some of the less than complimentary things UA said about US when UA was merging with CO, I'm sure US would like to get away from US. I think that is where the label "ugly duckling" started.



Quoting Byrdluvs747 (Reply 36):
Despite what many US fanboys here think, the road ahead for US will be tough once IAG talks some sense to the creditors. IAG will bring along their financing partners, and I'm sure they can outdo US. If IAG and TPG combine, it's over for US.

So what would IAG/TPG bring to the creditors that would make them want to take that deal? A restructured AA with labor problems, a tarnished domestic route structure, the same management team, and a business plan that no one seems to be very excited about? IAG/TPG would have to invest a lot of cash to make that deal happen.
 
cjpmaestro
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 1:25 pm

Quoting Boeing773ER (Reply 32):
This is news to me, since when did BA fly to DCA?

Just kidding, I think you meant IAD.

Oh my bad! I did mean IAD.
 
lucky777
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 2:38 pm

Quoting AAplat4life (Reply 38):
Given some of the less than complimentary things UA said about US when UA was merging with CO, I'm sure US would like to get away from US. I think that is where the label "ugly duckling" started.

It wasn't ony UA that had less than nice things to say about LCC during its ill-fated courtship. Delta employees were absolutely repulsed when news came of a LCC buyout attempt. I know i personally threw up in my mouth when the news first came across the wires. I don't know what it is, but US Airways simply gets no love from fellow airlines. Frankly Doug Parker et al. know this and thats why they are forced to wait until an airline is in bankruptcy before they decide to pounce because they know an otherwise healthy airline wouldn't even give LCC the time of the day under normal circumstances.
 
cjpark
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 2:42 pm

Quoting AAplat4life (Reply 38):
So what would IAG/TPG bring to the creditors that would make them want to take that deal? A restructured AA with labor problems, a tarnished domestic route structure, the same management team, and a business plan that no one seems to be very excited about? IAG/TPG would have to invest a lot of cash to make that deal happen.

We have an airline managed pretty much by the same team that kept them out of bankruptcy longer than any other legacy carrier, a route system that made them good money until fuel prices destroyed the advantage of an older but paid for fleet of aircraft. Sure there are labor problems but what airline does not have labor problems.

What does IAG and TPG have to be excited about investing to prevent AA from falling into the hands of a rival?

1. Recently awarded the same ATI rights for AA and BA as previously enjoyed by UA and LH, DL and AF.
2. What will be a clean balance sheet.
3. New efficient fleet.
4. A proven management team that kept AA out of bankruptcy longer than any of the other legacy airlines.
5. Eventual resolution of labor issues by Court Action
6. A reservation and ticketing system that is still the standard of the industry.
7. The best FF program and pretty much the most fiercly loyal Frequent Flyers in the industry.
8. ATI with JAL in the pacific.
10. One of the most complete South American route structures in the industry.

Wow, the same things that must make AA attractive to US go figure?
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PezySPU
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 7:11 pm

Quoting cjpark (Reply 41):
4. A proven management team that kept AA out of bankruptcy longer than any of the other legacy airlines.

Why can't it be the other way around? Are there any particular reasons why you don't say it's a crazy management team that kept AA out of bankruptcy restructuring when, in fact, it would be wiser if they entered Chapter 11 years ago? Serous question. Do they have any benefits from not entering Ch11 earlier? I don't think so. In fact, they only got themselves in even bigger trouble in the meantime.
 
lhr380
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 7:14 pm

Quoting PezySPU (Reply 42):
Why can't it be the other way around? Are there any particular reasons why you don't say it's a crazy management team that kept AA out of bankruptcy restructuring when, in fact, it would be wiser if they entered Chapter 11 years ago? Serous question. Do they have any benefits from not entering Ch11 earlier? I don't think so. In fact, they only got themselves in even bigger trouble in the meantime.

Do everything you can to not take the easy way out, or just take the easy way?
(The views on this site are my own and no one elses)
 
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readytotaxi
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 7:29 pm

Quoting context (Reply 26):
Two questions:

1. (To the OP) Would you please drop a link to the article? All I could find was http://www.marketwatch.com/story/iag...03-25

Sorry Justin, there is no link.
The Times newspaper is a "pay to view" on line now. I wrote the bit after reading the newspaper on Sunday.

Here is a link about IAG.
http://www.iairgroup.com/phoenix.zhtml?c=240949&p=index

Hope that helps you.  
you don't get a second chance to make a first impression!
 
PezySPU
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 7:32 pm

Quoting lhr380 (Reply 43):
Quoting PezySPU (Reply 42):
Why can't it be the other way around? Are there any particular reasons why you don't say it's a crazy management team that kept AA out of bankruptcy restructuring when, in fact, it would be wiser if they entered Chapter 11 years ago? Serous question. Do they have any benefits from not entering Ch11 earlier? I don't think so. In fact, they only got themselves in even bigger trouble in the meantime.

Do everything you can to not take the easy way out, or just take the easy way?

Umm, exactly. *If* AA succeeded and turned itself into a healthy business without Ch11, it would be awesome and an example to everyone. Unfortunately, it didn't, and all the hard work of its employees is kinda worthless now... This strikingly closely resembles Raskolnikov's adventure in Crime and Punishment by Fyodor Dostoyevsky.
 
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enilria
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 7:35 pm

Quoting cjpark (Reply 41):
What does IAG and TPG have to be excited about investing to prevent AA from falling into the hands of a rival?

1. Recently awarded the same ATI rights for AA and BA as previously enjoyed by UA and LH, DL and AF.
2. What will be a clean balance sheet.
3. New efficient fleet.
4. A proven management team that kept AA out of bankruptcy longer than any of the other legacy airlines.
5. Eventual resolution of labor issues by Court Action
6. A reservation and ticketing system that is still the standard of the industry.
7. The best FF program and pretty much the most fiercly loyal Frequent Flyers in the industry.
8. ATI with JAL in the pacific.
10. One of the most complete South American route structures in the industry.

Wow, the same things that must make AA attractive to US go figure?

The key question as I keep saying is whether IAG is on board with US merging with AA. I don't think it is very valuable to them. There are no hubs of value to OneWorld in the US network except maybe PHL. OTOH, I guess there is no reason to be against such a merger. It's up to US to win approval from IAG really.
 
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readytotaxi
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 7:44 pm

Quoting VV701 (Reply 37):

Good post.  
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LAXtoATL
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RE: IAG Eyes Rescue Deal For AA

Mon Mar 26, 2012 8:15 pm

Quoting PezySPU (Reply 42):
Why can't it be the other way around? Are there any particular reasons why you don't say it's a crazy management team that kept AA out of bankruptcy restructuring when, in fact, it would be wiser if they entered Chapter 11 years ago? Serous question. Do they have any benefits from not entering Ch11 earlier? I don't think so. In fact, they only got themselves in even bigger trouble in the meantime.

You are correct, it was extremely poor management for AA to postpone bankruptcy restructuring! If it had worked, they would have been hailed as visionaries and great leaders. Unfortunately it didn't work. They have lost more than $10bln over the last decade, fostered a terrible relationship between management and labor that has resulted in decreased morale (and according to some a less than spectacular experience by customers as a result), and the inability to invest in the business to improve customer experience.

Quoting lhr380 (Reply 43):
Do everything you can to not take the easy way out, or just take the easy way?

There is nothing easy about a ch11 restructuring! Anybody that thinks so has no idea what the process is about. Even the decision to file or not is an extremely complicated and difficult process and one of the reasons AA waited so long. And that is just the beginning of a very difficult process. Without even getting into the details of the actual process of a bankruptcy restructuring for a company the size of AA, add to it the fact that labor is resisting, creditors trying to squeeze every bit they can out of the process, competitors trying to takeover, allies trying to insure their interests are protected etc etc.

To be honest the easy way out was to maintain status quo and do nothing and that is what AA management did for several years. Actually taking the bull by the horns and trying to restructure the business is making the difficult decision and doing the hard work!
 
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RE: IAG Eyes Rescue Deal For AA

Tue Mar 27, 2012 4:19 am

Quoting VV701 (Reply 37):
If you have the time to read it this comprehensive and excellent analysis of TATL traffic may answer your question:

http://www.msmaviation.com/publicdocs/Transat_Winter_2011_2012.pdf

I suggest you start at page 35.

WOW! Amazing resource, thank you. Fumbling through that has certainly helped me get a clearer picture!

Quoting readytotaxi (Reply 44):
Sorry Justin, there is no link.
The Times newspaper is a "pay to view" on line now. I wrote the bit after reading the newspaper on Sunday.

Ahh, got it. Thanks for the link to IAG. Interesting to learn about them, I had no idea they existed until your post!