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

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