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b757300
Topic Author
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National Airlines In Talks With Carl Icahn

Sat Jun 02, 2001 12:17 pm

National Airlines in talks with Icahn for bailout

By Simon Hirschfeld


NEW YORK, June 1 (Reuters) - Las Vegas-based National Airlines is in talks with financier Carl Icahn for a deal to bail the airline out of bankruptcy, a National spokesman said Friday.

Icahn has been hungry to control his own airline and use his Lowestfare.com Web site as a distribution channel for the tickets ever since losing access to discounted Trans World Airlines tickets after that carrier filed for bankruptcy and was bought by AMR Corp.'s American Airlines.

In court Friday in Las Vegas, National is asking a judge to force casino operator Harrah's Entertainment Inc. to extend a $16 million letter of credit that allows the airline to get paid immediately when it makes credit card ticket sales.

Without the letter, National's bank would hold the money for a given sale until it completes the flight. Harrah's wants to let the credit line expire, which would be a blow to the struggling airline.

Meanwhile, Icahn has said in court that his offer to save National expires Friday. A National spokesman said the airline is still hoping to reach a deal with Icahn, who right now is the only one with a financing offer.

National spokesman Dik Shimizu said the airline has been having its best days ever from an operational standpoint in the last week. But issues such as aircraft lessors who want to renegotiate lease terms have held up a final deal with Icahn.

"We're in the position where we believe that we're very close to having a deal completed (with Icahn), but we need a little more time," Shimizu told Reuters.

He said he was not familiar with the specifics of Icahn's proposal, which has not been detailed before the court, but said it would likely mean control of the airline by Icahn.

National is asking the court for a ten-day restraining order forcing Harrah's to keep its letter of credit intact. If the judge declines to do so, credit card sales booked by National would start to go to paying back whatever amount is drawn down on the Harrah's credit line, a blow to National's finances.

Harrah's, which wrote down the value of its nearly $40 million investment in National, has said in court that it supports the Icahn offer.

A Harrah's spokesman declined to comment, and Icahn was not immediately available.


Copyright 2001 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
"There is no victory at bargain basement prices."
 
overlord
Posts: 109
Joined: Sun Jul 10, 2005 4:09 am

RE: National Airlines In Talks With Carl Icahn

Sat Jun 02, 2001 12:22 pm

Talk about a company with a death wish.

Ichan doesn't bail out, he destroys.
 
DL WIDGET HEAD
Posts: 1469
Joined: Wed Apr 12, 2000 8:18 am

RE: National Airlines In Talks With Carl Icahn

Sat Jun 02, 2001 12:24 pm

Bad news indeed!
 
IMissPiedmont
Posts: 6199
Joined: Wed May 23, 2001 12:58 pm

RE: National Airlines In Talks With Carl Icahn

Sat Jun 02, 2001 12:37 pm

Icahn buying National? Never happen. The DOT has shot down Carl before as unfit to own an airline. They won't let it happen this time either.
The day you stop learning is the day you should die.
 
blink182
Posts: 5370
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RE: National Airlines In Talks With Carl Icahn

Sun Jun 03, 2001 1:49 am

With Carl, National won't be around in a year, thats for sure.
rgds,
blink182
Give me a break, I created this username when I was a kid...
 
pmk
Posts: 609
Joined: Wed May 26, 1999 10:07 am

RE: National Airlines In Talks With Carl Icahn

Sun Jun 03, 2001 2:18 am

Don't talk like that! Icahn owns three Major LV properties, he needs to move people around, it would work quite well. Of course I'm just a Las Vegas insider, I don't know anything  Smokin cool.

Peter
 
ha2vegas
Posts: 147
Joined: Wed Apr 11, 2001 1:02 pm

RE: National Airlines In Talks With Carl Icahn

Sun Jun 03, 2001 5:42 am

Not to mention that he needs a new outlet to replace lost revenue from TWA ticket sales for his online outlet, lowestfare.com I think its likely that Icahn will succeed in gaining control of N7
 
caetravlr
Posts: 865
Joined: Mon Oct 16, 2000 8:19 am

RE: National Airlines In Talks With Carl Icahn

Sun Jun 03, 2001 6:24 am

I don't think he would intentionally run the airline into the ground. As it has been said, he wants to get passengers into and out of Las Vegas. As well, he needs to control an airline he can use to sell tickets on lowestfare.com. However, if any of you are employees of National, I would be looking for another job, because working for him would probably prove to be anything but a pleasant experience.
A woman drove me to drink and I didn't have the decency to thank her. - W.C. Fields
 
Mac
Posts: 287
Joined: Thu May 24, 2001 11:56 am

RE: National Airlines In Talks With Carl Icahn

Sun Jun 03, 2001 6:39 am



Icahn, if this deal happens, will put up the financing for controlling interest, let the airline make some money, he will take that money and reinvest in other areas, the airline will again start losing altitude, another merger will take place...that is if there are any takers...and National will be no more...and Icahn will go on his merry way to another project.
 
deltairlines
Posts: 7232
Joined: Mon May 24, 1999 4:47 am

RE: National Airlines In Talks With Carl Icahn

Sun Jun 03, 2001 8:35 am

When will airlines learn:

Icahn or Lorenzo = Death to the airline.

It was Icahn that killed TWA, ruining a proud name in aviation history.

Jeff
 
ILOVEA340
Posts: 2064
Joined: Sat Oct 30, 1999 9:49 am

RE: National Airlines In Talks With Carl Icahn

Sun Jun 03, 2001 9:12 am

He doesn't bail them out he gets them their in the first place. Anyone know where I can get a pic of him? (would make a nice dart board.)
 
Guest

RE: National Airlines In Talks With Carl Icahn

Sun Jun 03, 2001 9:21 am

If Carl doesn't bail out National, there may be no National to bail out.

N7 is running into some serious issues regarding its finances and efforts to emerge from bankruptcy protection. Should be interesting.....
 
TWA717_200
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Joined: Tue Nov 23, 1999 3:51 am

RE: National Airlines In Talks With Carl Icahn

Sun Jun 03, 2001 10:14 am

I, um, okay.

 
rominato
Posts: 258
Joined: Sat Nov 27, 1999 12:18 pm

RE: National Airlines In Talks With Carl Icahn

Sun Jun 03, 2001 11:10 pm

So long National.... It was nice having you around for a couple years, but Ichan will be the death of you.
 
pmk
Posts: 609
Joined: Wed May 26, 1999 10:07 am

RE: National Airlines In Talks With Carl Icahn

Mon Jun 04, 2001 2:05 am

Everybody here who is in the gaming business please raise your hand? Just as I thought, I'm the only expert. Every major gaming company has an airline under their belts. MGM Mirage used to own MGM grand air, however they sold and MG is now Champion air which is owned by MLT Vacations, which is owned by Northwest Airlines. MGM now has an agreement with MLT. Park Place has it's agreements, Boyd Gaming has a large stake in Hawaiian, Icahn needs an airline. After completing the expansion of the Stratosphere to more than 2000 rooms he needs to fill it, as anybody familiar with LAS know the average occupancy rate is in the high 90 percentile range. The average package to Las Vegas is 4 days, that means to keep 1900 rooms filled Icahn needs to move at least 475 people in and out of LAS every day, from all over the country, just to keep the Stratosphere filled, not even figuring another 1500 rooms for the Arizona Charlie's properties. Trust me Mr. Icahn NEEDS an airline, National may loose some of it's distinctiveness such as first class but it will not go away.

Peter
 
Guest

RE: National Airlines In Talks With Carl Icahn

Mon Jun 04, 2001 6:22 am

Ok, if Ichan needs the airline so much, why doesn;t Harrah's, a much larger concern (Rio, Harrah's etc...), need the airline too???

Answer that Mr Casino Man

kind regards
russ

PS: I'm in the industry too!
 
pmk
Posts: 609
Joined: Wed May 26, 1999 10:07 am

RE: National Airlines In Talks With Carl Icahn

Mon Jun 04, 2001 11:20 pm

WHO DO YOU THINK IS CURRENTLY FUNDING NATIONAL!!! If you worked for me you wouldn't work for me!

Peter
 
Boeing Nut
Posts: 5078
Joined: Fri Feb 23, 2001 2:42 am

RE: National Airlines In Talks With Carl Icahn

Tue Jun 05, 2001 2:47 am

One of two things will happen under Icahn.

1) - National will die, or

2) - National will be on a feeding tube the rest of it's life.

Icahn is only interested in the money. He doesn't care how the airline runs as longs as he gets to go to the bank with some money in his hands. If he does keep the airline on a "feeding tube", it will be a poor airline. No money for employees, cost cuts, no morale, poor service. Either way, if Icahn gets into National, put a fork in them cause they will be done.

If you need any more proof, I've got three letters for ya: TWA. Need I say more?
I'm not a real aeronautical engineer, I just play one on Airliners.net.

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