BA may buy key stake in American Airl...

BA may buy key stake in American Airlines to block Delta

There are 14 comments on the Daily Mail story from Aug 11, 2012, titled BA may buy key stake in American Airlines to block Delta. In it, Daily Mail reports that:

British Airways' parent company is considering buying a small stake in American Airlines to prevent it from being taken over by Delta and turning into a global rival.

Join the discussion below, or Read more at Daily Mail.

Since: May 08

Santee CA

#1 Aug 11, 2012
Really, an AA/DL merger concerns the head of BA. I lack a business degree, but I do have 26 years in the industry. There is NO chance an AA/DL merger clears antitrust. Does anyone have a counterpoint? I'd be interested to hear it. Some folks make WAY too much money for thier actual job skills
Flyer

Fort Worth, TX

#2 Aug 12, 2012
An AA/DL merger could certainly pass muster. DL would buy and keep the best parts of AA, the South American routes, DFW and the slots at Heathrow and divest the rest. This would once agin make Delta number one and would also end One World. United would be happy to lose AA at ORD and all the small boys would love the opportunity to pick amongst the scraps, especially the slots at JFK, Boston and LAX.
Toad

Griffin, GA

#3 Aug 12, 2012
Flyer wrote:
An AA/DL merger could certainly pass muster. DL would buy and keep the best parts of AA, the South American routes, DFW and the slots at Heathrow and divest the rest. This would once agin make Delta number one and would also end One World. United would be happy to lose AA at ORD and all the small boys would love the opportunity to pick amongst the scraps, especially the slots at JFK, Boston and LAX.
You are spot on. The reality for AMR has never been survive and merge. DAL/UAL could formulate a buy and sell strategy that would more than satisfy DOT and all other legal hurdles. The cash that DAL would use to purchase AMR assets would be quickly replaced by selling parts of AMR to USAir. DAL doesn't want DFW, USAir does. DAL doesn't want ORD, UAL and USAir do. The JFK/LGA slots could be auctioned back to Port Authority where they could sell on open market. MIA is what DAL wants, LHR is what DAL/KLM/AFrance wants. Getting rid of AMR as an Asian carrier is what UAL and DAL want. Taking away the partnerships of OneWorld, especially BA and JAL is what DAL and UAL want. It's a near perfect equation. Especially in this economy.
Toad

Griffin, GA

#4 Aug 12, 2012
Toad wrote:
<quoted text>
You are spot on. The reality for AMR has never been survive and merge. DAL/UAL could formulate a buy and sell strategy that would more than satisfy DOT and all other legal hurdles. The cash that DAL would use to purchase AMR assets would be quickly replaced by selling parts of AMR to USAir. DAL doesn't want DFW, USAir does. DAL doesn't want ORD, UAL and USAir do. The JFK/LGA slots could be auctioned back to Port Authority where they could sell on open market. MIA is what DAL wants, LHR is what DAL/KLM/AFrance wants. Getting rid of AMR as an Asian carrier is what UAL and DAL want. Taking away the partnerships of OneWorld, especially BA and JAL is what DAL and UAL want. It's a near perfect equation. Especially in this economy.
BTW, when UAL purchased Pacific routes and AC from PanAm they put the employees that wanted to cross over on the bottom as new hires. When DAL purchased European routes from PaAm those that interviewed and got hired were given slots, loosing about 6-8yrs bidding, but not to the bottom. If DAL does purchase parts of AMR, the employees will have to interview and would, in all fairness, be given a slot, loosing between 8-12yrs bidding due to the size of DAL.
Loaded

United States

#5 Aug 12, 2012
Prost wrote:
Really, an AA/DL merger concerns the head of BA. I lack a business degree, but I do have 26 years in the industry. There is NO chance an AA/DL merger clears antitrust. Does anyone have a counterpoint? I'd be interested to hear it. Some folks make WAY too much money for thier actual job skills
It may happen, the AA pilots think they can run a company and fly aircraft. And AA CEOs think they can fly aircraft and maintain them. Everbody needs to suport each other and win as a team. The buzzards are flying.

Since: Apr 08

Tulsa, OK

#6 Aug 12, 2012
If AMR gets picked over and turned into shreds then I hope the selfish pilots get their due reward, the Golden Shaft! They can use it to fly around like Harry Potter.

No doubt the clueless FAs will reject their contract proposal as well. Little do they know that they can be replaced in 6 weeks. I guess they haven't read the unemployment reports.
anti merger

Schaumburg, IL

#7 Aug 12, 2012
I hope BA buys AA to block a Delta takeover..AA should operate independently..If I took over AA all the Executives would be fired and I would get rid of the unions!!!!!establish a mid atlantic hub Richmond Virginia..

Since: May 08

Santee CA

#8 Aug 12, 2012
Flyer and Toad, while your ideas would be a dream come true for many AA employees. What are the odds anyone would see the managers that ran a once proud compnay into the ground displaced actually happening? I can think of alot of people who would rather work for someone else in some sort of take over than work for the current executive team. Why do you think Maint barely passed a second go around, and the pilots resoundingly said no? The ramp. A large number of them have been bought out or sent packing by outsourcing anyway. Not sure where the FA's stand yet. The BK laws don't care about the contradictions spoken by management, they only are designed to protect the creditors. There needs to be reform there too.
Flyer

United States

#9 Aug 13, 2012
Prost wrote:
Flyer and Toad, while your ideas would be a dream come true for many AA employees. What are the odds anyone would see the managers that ran a once proud compnay into the ground displaced actually happening? I can think of alot of people who would rather work for someone else in some sort of take over than work for the current executive team. Why do you think Maint barely passed a second go around, and the pilots resoundingly said no? The ramp. A large number of them have been bought out or sent packing by outsourcing anyway. Not sure where the FA's stand yet. The BK laws don't care about the contradictions spoken by management, they only are designed to protect the creditors. There needs to be reform there too.
As someone in the know, there would be huge job losses for mechanics and significant loses to Pilots if AA were broken up. The reality of the business today is airlines have too many employees, too many old planes, and work rules are too combursome. The ugly truth not being talked about in the industry is that with any small hick-up, everyone in the US could be right back in bankruptcy including United, Delta and US Air. Even the best airlines in the world are now struggling to make money. The good old days are never coming back and these could actually be the best days for the foreseeable future. Business around the globe are just starting to pull the plug on business travel and next year it is going to get really bad. If for any reason fuel prices jump, watch out!
Toad

Griffin, GA

#10 Aug 13, 2012
Prost wrote:
Flyer and Toad, while your ideas would be a dream come true for many AA employees. What are the odds anyone would see the managers that ran a once proud compnay into the ground displaced actually happening? I can think of alot of people who would rather work for someone else in some sort of take over than work for the current executive team. Why do you think Maint barely passed a second go around, and the pilots resoundingly said no? The ramp. A large number of them have been bought out or sent packing by outsourcing anyway. Not sure where the FA's stand yet. The BK laws don't care about the contradictions spoken by management, they only are designed to protect the creditors. There needs to be reform there too.
I'm not sure the AA employees would consider a deal where they would loose 8-10yrs sen., recall rights and still have to 1st pass the interview process........but, the BK laws that were put into effect post DAL/NWA BK's are more than fair to the creditors. If a merger from Doug fives them .15 on the dollar and a stand alone plan would 'promise' returns of .20 on the dollar.......DAL offer .35 cash on the dollar, DAL sells Doug DFW and UAL JFK then beefs up LAX, the slots @ ORD can be auctioned and the .35 cents on the dollar has a DAL return of .15cents on the dollar immediatley. In this economy, it would be a stage left exit for AMR mgmt no matter what happens to them unless they stand alone. There isn't an investment firm on the planet that would bet on a AMR stand alone plan. That's why they are gonna have a terrible time finding dollars.
Toad

Griffin, GA

#11 Aug 13, 2012
Flyer wrote:
<quoted text>
As someone in the know, there would be huge job losses for mechanics and significant loses to Pilots if AA were broken up. The reality of the business today is airlines have too many employees, too many old planes, and work rules are too combursome. The ugly truth not being talked about in the industry is that with any small hick-up, everyone in the US could be right back in bankruptcy including United, Delta and US Air. Even the best airlines in the world are now struggling to make money. The good old days are never coming back and these could actually be the best days for the foreseeable future. Business around the globe are just starting to pull the plug on business travel and next year it is going to get really bad. If for any reason fuel prices jump, watch out!
If predicating a theory based upon all out failure is logical, then sure, one dime away from liquidation. Alas, the wheels turned faster than your dis-qualifications. DAL, AMX, GE Cap, Boeing, AirBus the cities of ATL, NYC, SLC DTW are just a few of the new owners of the 'too big to fail' Corporations. Specifically designed for the whole sale under writing of terms by Govts and other Corp that are also..........too big to fail'.........

Since: May 08

Santee CA

#12 Aug 13, 2012
Toad wrote:
<quoted text>
I'm not sure the AA employees would consider a deal where they would loose 8-10yrs sen., recall rights and still have to 1st pass the interview process........but, the BK laws that were put into effect post DAL/NWA BK's are more than fair to the creditors. If a merger from Doug fives them .15 on the dollar and a stand alone plan would 'promise' returns of .20 on the dollar.......DAL offer .35 cash on the dollar, DAL sells Doug DFW and UAL JFK then beefs up LAX, the slots @ ORD can be auctioned and the .35 cents on the dollar has a DAL return of .15cents on the dollar immediatley. In this economy, it would be a stage left exit for AMR mgmt no matter what happens to them unless they stand alone. There isn't an investment firm on the planet that would bet on a AMR stand alone plan. That's why they are gonna have a terrible time finding dollars.
I have 26 years, and my option is selling my house, and moving to Texas or somewhere, or selling my house and being unemployed here. I will tell you more about my feelings as soon as the corporate social network policy is no longer in force for me. AA is a wonderful company to work for, and I would never say a bad thing about my employer, until they are no longer my employer.
Toad

Griffin, GA

#13 Aug 13, 2012
Prost wrote:
<quoted text>I have 26 years, and my option is selling my house, and moving to Texas or somewhere, or selling my house and being unemployed here. I will tell you more about my feelings as soon as the corporate social network policy is no longer in force for me. AA is a wonderful company to work for, and I would never say a bad thing about my employer, until they are no longer my employer.
Im hoping you don't have to sell or loose ur job

Since: May 08

Santee CA

#14 Aug 13, 2012
Toad wrote:
<quoted text>
Im hoping you don't have to sell or loose ur job
Thanks, me too. Sean Lanes' hands are tied by the law, and Tom Horton has no interest is saving people. The chances were there and he didn't act.(He is however a wonderful CEO, and it has been an extreme pleasure to work for him. The social media policy also dictates that I mention the fact that I am proud to take my aged, battered body back into the work force. My sacrifice was an important part of helping AA emerge from bankruptcy and stronger, better carrier.)

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