Monday, February 4, 2013

Analyst has harsh words for American management

At least one analyst isn't impressed with American Airlines' latest request for more time to file a bankruptcy exit plan and possibly delay a merger with US Airways.

US Airways has been seeking to pull off this merger for more than a year now. The latest request from AMR Corp, American Airline's parent company, seeks to extend the company's bankruptcy exit plan deadline until April 15. 

While most industry watchers still see the merger as a foregone conclusion, some say that AMR might still try to exit bankruptcy on its own.

New American livery
Vicki Bryan, an analyst at independent bond research service Gimme Credit, wasn't happy to hear about the extension request. In a note to clients late Friday, she wrote: "AMR management has been coming off as more arrogant than confident, in our view, with destructive diversions and posturing that almost has boarded (sic) on the ridiculous. From CEO Tom Horton's "revelation" back in July that the merger with US Airways actually was his idea in the first place (oh really? If so, he apparently couldn't pull it off. See our note on 7/25/12) to the unveiling last week of expensive (and unappealing) corporate rebranding and garish new livery on planes that most likely will be owned by somebody else soon."

Bryan still thinks the merger is likely, and that US Airways CEO Doug Parker will head the combined company. 


Anonymous said...

This is all about Tom Horton's payday and nothing else.

Obviously, he has a judge in his pocket.

Anonymous said...

Timing On April 15Th? Curious To Say The Least.