3 comments on “US Airways-American Airlines merger implications

    • American’s bankruptcy is not a large risk at all. With $4 billion in cash as of December 2011, they have plenty of flexibility. Declaring Chapter 11 was more of a preemptive move than anything. Also, as I mentioned in my previous post, they already have their operations in order and only need to lower their labor costs, whereas past bankruptcies, like with Delta, United, and US Airways, required a complete restructuring across the board. It’s not an easy task to cut labor contracts and slash benefits, but it’s easier when its the sole focus.

  1. Pingback: U.S. Regional Carriers Feeling the Pinch « The Stengel Angle

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s