Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  AMR Corporation    AAMRQ

SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Unions call on AMR board to support U.S. Air merger

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/03/2012 | 11:43pm CEST

Three labor unions at American Airlines are appealing directly to the company's board of directors to support a merger with rival carrier US Airways Group (>> US Airways Group, Inc.), a step managers at carrier's parent, AMR Corp (>> AMR Corporation), have so far resisted.

Three labor unions at American Airlines are appealing directly to the company's board of directors to support a merger with rival carrier US Airways Group (>> US Airways Group, Inc.), a step managers at carrier's parent, AMR Corp (>> AMR Corporation), have so far resisted.

In a letter addressed to the board and signed by leaders of unions representing 55,000 flight attendants, pilots and ground workers, the unions insist a merger plan offered by US Airways will save jobs, boost revenue and shore up the combined network of the two airlines.

Fort Worth, Texas-based AMR, which filed for bankruptcy in November citing a need to cut labor costs, has said it is committed to emerging from Chapter 11 as a stand-alone company.

"Under the plan put forth by US Airways management, a merger now between American Airlines and US Airways would result in a rejuvenated American Airlines," according to the letter, signed by leaders of the Allied Pilots Association (APA), the Transport Workers Union (TWU) and the Association of Professional Flight Attendants (APFA).

The text of the letter was set to appear on Friday in ads published in the Wall Street Journal, the Dallas Morning News and the Fort Worth Star-Telegram, a TWU spokesman said.

US Airways has not submitted a formal merger proposal to AMR, which has the exclusive right in bankruptcy court to reorganize without interference from outsiders.

US Airways, however, has struck a labor deal with AMR's unions, which are members of AMR's creditors committee and therefore have a say in the restructuring.

"An American Airlines-US Airways merger would be mutually beneficial by filling the gaps in each carrier's network and boosting overall revenue," the letter said.

US Airways has said a merger with AMR would generate at least $1.2 billion a year beyond the benefits that could be passed to employees of the combined carrier.

AMR, however, insists its stand-alone plan would create $3 billion in financial improvements by 2017. To achieve this goal, the company says, it must slash labor costs by $1.25 billion a year.

AMR has been locked for years in fruitless negotiations with its unions on concessions it says it needs to survive. The company has asked its bankruptcy court for permission to void the contracts it has with unions that are not willing make required sacrifices.

Spokesmen for the TWU and the APFA confirmed their unions have talked with their counterparts at US Airways to lay the foundation for joint contracts in the event of a merger.

James Ray, spokesman for US Airline Pilots Association, which represents the pilots at US Airways, said members are working with the APA on a joint contract.

US Airways, formed from a 2005 merger with America West Airlines, still has not integrated its pilots and flight attendants work groups.

American Airlines is the third-largest U.S. airline behind United Airlines (>> United Continental Holdings, Inc.) and Delta Air Lines (>> Delta Air Lines, Inc.), both of which have already restructured in bankruptcy.

(Reporting by Kyle Peterson; Editing by Steve Orlofsky)

By Kyle Peterson

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AMR CORPORATION
05/25 AMERICAN AIRLINES : OPENS FLAGSHIP FIRST DINING AND FLAGSHIP LOUNGE IN NEW YORK&..
05/25 American Airlines Opens Flagship First Dining and Flagship Lounge in New York..
05/24 American Airlines Names Nathan J. Gatten Senior Vice President – Govern..
05/22 Suntrust Banks Inc. Lowers Stake in American Airlines Group Inc (AAL)
05/18 AMERICAN AIRLINES GROUP INC. : Regulation FD Disclosure, Financial Statements an..
05/17 Bev Goulet to Retire From American Airlines
05/16 AMERICAN AIRLINES : Promotes Patrick O'Keeffe to Senior Vice President - People
05/16 Buffett's Berkshire boosts American, Southwest airline bets; sheds Fox
05/15 AMERICAN AIRLINES : Promotes Patrick O’Keeffe to Senior Vice President &nd..
05/15 American Airlines Promotes Patrick O’Keeffe to Senior Vice President &..
More news
Sector news : Regional Airlines
05/26 BA and Iberia plan third-party booking surcharge, Amadeus shares hit
05/25 Wizz Air reports record profit and no signs of Brexit hit
05/24 UNITED CONTINENTAL : Disgruntled employees grill United at shareholders meeting
05/24 MCDONALD : Hundreds protest over minimum wage at McDonald's stockholder meeting
05/24DJMexico's Foreign Direct Investment Up in First Quarter
More sector news : Regional Airlines
Advertisement
Financials ($)
Sales 2017 41 852 M
EBIT 2017 4 709 M
Net income 2017 2 284 M
Debt 2017 22 565 M
Yield 2017 0,85%
P/E ratio 2017 10,62
P/E ratio 2018 8,83
EV / Sales 2017 1,11x
EV / Sales 2018 1,03x
Capitalization 24 009 M
More Financials
Income Statement Evolution
More Financials
Consensus 
Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 54,0 $
Spread / Average Target 11%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
William Douglas Parker Chairman & Chief Executive Officer
Robert D. Isom President
Derek J. Kerr Chief Financial Officer & Executive Vice President
Maya Leibman Chief Information Officer & Executive VP
Craig Barton Vice President-Technical Services
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
AMR CORPORATION24 009
SOUTHWEST AIRLINES CO21.73%36 685
AMERICAN AIRLINES GROU..2.85%24 009
JUNEYAO AIRLINES CO LT..-11.55%4 044
ALLEGIANT TRAVEL COMPA..-12.29%2 428
CONTROLADORA VUELA CO ..-18.96%1 192
More Results