The battle between management at bankrupt AMR and the management of US Airways (NYSE: LCC) about a possible takeover of the troubled carrier continues. Public comments by US Airways CEO Doug Parker have their foundation in the assumption that AMR cannot stand on its own. AMR has too many labor problems, and it can no longer compete effectively with mega-carriers such as Delta (NYSE: DAL) and United (NYSE: UAL).
AMR chief executive Tom Horton argues that because Chapter 11 will strip his carrier of debt and excess airplane inventory, he will have a balance sheet among the strongest in the industry. Eventually the bankruptcy judge will decide if US Airways can make a bid. In the meantime, the public fight is meaningless.
Douglas A. McIntyre
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