« CWA launches ad campaign to allow American passenger service agents to vote | Main | Over 20,000 apply for flight attendant positions at American in less than a week »

November 15, 2012

AMR CEO Horton says creditors should get more stock in merged airline than what US Airways has proposed

AMR chief executive Tom Horton told creditors that they should get most of the stock in the new American Airlines if it merges with US Airways.

According to the Associated Press, Horton made the comments during a meeting with the unsecured creditors committee. Here's what AP's talented David Koenig reported on Wednesday evening:

"AMR CEO Thomas Horton said Wednesday that AMR creditors should get considerably more stock in a combined airline than US Airways has so far proposed, said one of the people, who spoke on condition of anonymity because the companies have signed a confidentiality agreement...

"They said Horton also said that costs of a combined airline are hard to gauge because of labor uncertainty at US Airways, and that such uncertainty should be reason to give AMR creditors more equity as compensation for the risks related to combining the two airlines' workforces."

US Airways executives presented its plan for a merged airline to the unsecured creditors on Tuesday while American executives discussed their idea for a stand-alone carrier with creditors on Wednesday.

-Andrea Ahles

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c2cc953ef017d3db502a4970c

Listed below are links to weblogs that reference AMR CEO Horton says creditors should get more stock in merged airline than what US Airways has proposed:

Comments

US PHL

Sounds like Doug is being Doug and trying to figure out how to hoard more of that stock for himself. He certainly seems to do that with US profits and has made little to no attempts to pay his employees what they are due.

casual observer

Interesting point. Could it be that Parker really doesn't have the cash needed and will need to "hold" some of that stock to pay down the merger costs? Also, how much has he offered as a bribe to labor...at least AA labor? We know he had to have made some pretty hefty promises and will need some way to show he's good for them.

Sky Lover

I just don't see the silver lining of the US Air merger.

US can't even get their unions on board. It's easy to promise stuff to another union when it's all on paper.

Let US Airways get their house in order before they start trying to run someone else's house.

Wings367

So let's do a merger and you can keep the American Airline name, and I'll keep all the money. Good one Doug.

Post a comment

Comments are moderated, and will not appear on this weblog until the author has approved them.

If you have a TypeKey or TypePad account, please Sign In.