95 replies to this topic

[renamerusk]

The Vulture Capitalists/Corporate Raiders are after AMR!
Everybody please, lets pull for American Airlines!

From the Wall Street Journal/Fort Worth Star Telegram:


http://blogs.star-te...n-wsj-says.html



Keep AMR in Fort Worth

[hannerhan]

The Vulture Capitalists/Corporate Raiders are after AMR!
Everybody please, lets pull for American Airlines!

From the Wall Street Journal/Fort Worth Star Telegram:


http://blogs.star-te...n-wsj-says.html



Keep AMR in Fort Worth

Ironically, I think AMR would have a FAR better shot of staying in Fort Worth if TPG were to buy it, vs. a Delta takeover. So your comment seems to be pretty off-base. I guess our first hint was the term "vulture capitalist."

[RD Milhollin]

I would hope that there is enough of a shred of anti-monopoly pro-competition legislation still on the books to prevent Delta from merging with AA. That potential oligopoly would control 40% of the domestic air market (or so CBS News reported) and if approved, should trigger re-regulation of airlines, probab;y the best thing for the flying public. If that happens, Dallas and Fort Worth might just consider selling DFW Airport to the ADelta conglomerate since they might be the only airline using it.

A vulture is an absolutely necessary part of the natural food web, so I don't know if it is TPG or the bird that is being denigrated by associating the two. TPG is based in Fort Worth, so that is good, but I doubt if they have any special regard for the city or region, probably continue to operate here for cold-blooded tax-avoidance reasons. That is OK as long as the system allows it, and the current tax system does allow loopholes large enough to fly 777s through. How would AA fare under the control of TPG? I honestly don't know enough about the situation to comment. I would guess they would put a management team in place that would be a vast improvement over those of the recent past. But bankruptcy would probably allow them to end any pension or related expenses, and it would no doubt allow them a significant club to fight unions, which is all that guarantees the workers are able to make living wages. If that is the way things go there would certainly be fewer jobs in the area and with lower pay, but there would still be jobs.

I suppose we will all know more about this situation as ste story continues to develop. The people who actually work for a living are undoubtedly the ones who will be harmed by whatever happens.

[renamerusk]

Ironically, I think AMR would have a FAR better shot of staying in Fort Worth if TPG were to buy it, vs. a Delta takeover. So your comment seems to be pretty off-base. I guess our first hint was the term "vulture capitalist."

Okay, so if you would prefer a nicer way of describing those who pick over the remains, maybe this works better:

Last month, AMR Corp. chairman and chief executive Tom Horton warned employees of "opportunists" that might come calling to buy American Airlines' parent. -- TERRY MAXON, Dallas Morning News/Jan 12, 2012

My guess is to reduce competition, Delta or US Airways will cherry pick the plum AMR routes and eliminate competitive routes. And more likely, TPG, like the increasingly more infamous Bain Capital, will sell all profitable components of AMR and make redundant its employees. Even though TPG may be based in Fort Worth, it cannot come close to being the economic engines that AMR and DFW Airport are to our region in bringing in industry and creating jobs.

FYI, TPG's home page spells out its philosophy - www.tpg.com/

[hannerhan]

Ironically, I think AMR would have a FAR better shot of staying in Fort Worth if TPG were to buy it, vs. a Delta takeover. So your comment seems to be pretty off-base. I guess our first hint was the term "vulture capitalist."

Okay, so if you would prefer a nicer way of describing those who pick over the remains, maybe this works better:

Last month, AMR Corp. chairman and chief executive Tom Horton warned employees of "opportunists" that might come calling to buy American Airlines' parent. -- TERRY MAXON, Dallas Morning News/Jan 12, 2012

My guess is to reduce competition, Delta or US Airways will cherry pick the plum AMR routes and eliminate competitive routes. And more likely, TPG, like the increasingly more infamous Bain Capital, will sell all profitable components of AMR and make redundant its employees. Even though TPG may be based in Fort Worth, it cannot come close to being the economic engines that AMR and DFW Airport are to our region in bringing in industry and creating jobs.

FYI, TPG's home page spells out its philosophy - www.tpg.com/

If you knew anything about TPG's history or David Bonderman's record with airlines (specifically Continental), I don't think you would make the assumption that he would pull a Gordon Gekko/Blue Star with American.

It is a simple and undisputed fact that AMR has the highest labor costs in the industry. Those costs had to come down, or AMR would not survive. Given that management and the unions just couldn't find any common ground, bankruptcy became the best option. Once the labor costs and debt load are shed, AMR will be in a much better position to compete with other airlines. The cost of flying out of DFW will drop, more air travel will originate here, jobs not only at AMR but in ancillary roles at other companies will be saved and added, more prosperity will be created in our region.

[renamerusk]

If you knew anything about TPG's history or David Bonderman's record with airlines (specifically Continental), I don't think you would make the assumption that he would pull a Gordon Gekko/Blue Star with American...... Once the labor costs and debt load are shed, AMR will be in a much better position to compete with other airlines.

I concede that other then knowing that TPG is Fort Worth-based I know absolute nothing about either TPG or a Mr. Bonderman making me essentially nothing more than a casual observer. But your referencing Gordon Gekko/Blue Star brings in mind this mantra attributed to G.Gekko –"What's worth doing is worth doing for money" and as such seems spot on in the case of TPG.


Your reply led me to google & Wikipedia Continental Airlines, a company that you cited as TPG managed. Also I did google/Wikipedia U.S. Airways Group, America West Airlines and Midwest Airlines all managed at one time by TPG. What one finds is web after web of mergers, spin offs and liquidations that are nearly impossible to navigate. Continental Airlines no longer exists having being sold to United. The original America West or Midwest Airlines appear to have been blended into other carriers and taken on new names. Only USAir now remains in TPG's portfolio.

If TPG's operational history is any indicator, AA's fate will very likely be similar to prior TPG managed airlines if or when TPG is successful in acquiring AMR. First will be capital gains followed by a replay of the agonizing Continental Airlines/Houston v. United/Chicago saga. This time however the parties will be AA/DFW v. USAir/ Pittsburgh/Charlotte saga. FYI, Chicago defeated Houston.

TPG like all successful capital venture groups has one goal – to create wealth for itself. You will find that TPG listed each one of its airline companies as capital as opposed to growth, and indication of how TPG will view AMR. A growth opportunity is when resources are injected into the company to generate an increase in products or service, and therefore create wealth Under capital opportunity, the goal is to extract capital gain by selling assets and reducing expenses, and therefore creating wealth. If TFG goal was to do anything other than extract wealth, they would have injected capital into AMR prior to the bankruptcy to generate growth.

You perhaps have the priviledge of knowing Mr. Bonderman or have knowledge that TPG will treat AMR differently than it has treated all its other airline properties. I merely have access to the limited information that TPG provides at its website and studying what they have done in the past.


In the main, lets all hope that AMR can be allowed to reorganize itself and reemerge before predators can get their hands on it. A DFW-based AA with growth as its goal is vital to our region. And as for your assertion that AMR will reemerge under the management of TPG stronger, just remember that TPG's USAirways Group is lurking in the weeds!

Keep Fort Worth folksy

[Volare]

Just a few points of information:

Continental was not sold to United. They merged as equals and the United name was judged more well known, so that name was kept. The Continental logo and paint job is the one being used for the new airline. Neither airline was bankrupt at the time of the transaction. It was done mostly in reaction to the massive Delta/NWA hookup. The reason Chicago was chosen over Houston is easy to figure out too- the merger had to get DOJ approval. Do you think the POTUS would allow a major corporation to leave his home town? If the merger had happened with GWB in the White House, you can bet that the new airline would have been based in Houston.

[David Love]

At one time I had AMR benefits which were transferred to the spinoff I eventually wound up in. When my division was purchased by what I'd consider a "Vulture Capitalist" / "Corporate Raider" cloaked as an IT company that extended its existence more than a decade by doing nothing more than buying the IT segments of companies, absorbing their assets, human assets, contracts, revenue streams followed quickly by the offloading of higher cost employees once a solid knowledge transfer had been completed. Most companies with the misfortune of offloading their IT services, 100% of the companies I knew of, were in financial hardships within 5 years of signing away their technical edge. The company that eventually bought them could ultimately become their final financial casualty, which even I thought was impossible. The Corporate Raider I worked for was affectionately known by its employees as The Borg.

Employee Benefits Harvesting:

Once the ink was dry on the deal that dealt with my benefits, I lost 110 sick days that I had acquired over 11 years of never missing a day of work, all in all I lost about a years worth of severance package. After leaving the company that had absorbed my sick days I realized I had been PAYING them to take the tax write off for providing me with medical and dental and really crappy coverage, the kind of coverage they make legal movies about, it was cheaper for me to buy my own on the open market. ALL the great benefits that were marketed to prospective employees either didn't exist or actually cost you more than the average guy on the street. Within 1 year I was being flown from company to company helping them do the same thing to other employees.

How does this work? Companies venture capitalists take over aren't actually "in trouble" they typically just have more assets than liabilities so no matter the outcome, they get paid. That's why the word Vulture fits so well in Vulture Capitalist.

2 years prior the the target company being "acquired" the target companies' board files 8-K forms with the SEC stating something on the order that if any board member is forced out of their position ALL bonuses, stock options, salaries, performance raises, often 5 years out, will be immediately VESTED and PAID IN FULL. Due to the corporate raider I had become part of being taken over, the lowest paid person was a secretary which received $12,000,000.00. This ensures the board and higher executives all have full buy in, as well as being insulated from the wrath that follows. I suspect this is why you'll never see Mitt Romney's tax returns before the GOP Primaries are completed and God forbid Presidential election.

6 months prior to being taken over, the group I was in, was told in order to make the deal work we had to have more heads, that according to their formula, for the amount of work the 11 members of my group accomplished we needed 32 heads, which we quickly hired, the youngest, lowest paid heads we could find, which sat around playing games for about a year. That's when I realized what we hired them for. The contract everyone signed when they came over ensured nothing would change within the first year. Day 1, Year 2, severance packages dropped to two weeks and the blood letting began, thousands of people with 15, 20, 30 years of service and some serious benefits were walking out the door "in equal numbers" with the new hires, all with little more than pictures and cardboard boxes.

After a few quarterly rounds are completed, bonuses are reallocated and levied out to those helping deal with the grief, any push back from the executive ranks often resulted with entire lines of management being culled. The really pathetic part was any time stock prices ran the risk of not meeting the upper rung's vesting price breaks, guess what, larger layoffs announced, stock price met. It got to the point where the order came down than "Any employee documenting or informing a customer that the problem or outage with their system(s) was due to the person or person's with key knowledge of that system no longer working for the company, would be immediately terminated."

I'm sure if the AMR structure remains, due mainly to the people I know that still work there or have recently gone back, employees will be treated as fairly as economically feasible and humanly possible. If it's a take over / merger, best term I can think of, Feeding Frenzy.

[Keller Pirate]

I have to believe that AMR management considered the take over possibility when they filed for bankruptcy. In fact they might actually want to be bought out. The CEO using the terminology he did could just be a strawman to whip the unions into line. Before the bankruptcy filing no one wanted to merge with AMR because of their contract and pension liabilities that all of the other major carriers had shed. Everyone else was in the pool, so to speak, but American had to stay out of the water because they were different.

[David Love]

I have to believe that AMR management considered the take over possibility when they filed for bankruptcy. In fact they might actually want to be bought out. The CEO using the terminology he did could just be a strawman to whip the unions into line. Before the bankruptcy filing no one wanted to merge with AMR because of their contract and pension liabilities that all of the other major carriers had shed. Everyone else was in the pool, so to speak, but American had to stay out of the water because they were different.

AMR was safe because of the inordinate amount of debt they were under, no company in their right mind would have considered buying them then, but now that they're in the process of shedding that, their routes, gates and infrastructure assets have become very very enticing to any like company with a surplus of cash or credit. Not sure where you'd find their SEC filings, Yahoo only has them back to December 2010 since AMR isn't actively traded, to see if they were prepping for a buyout, that's where you'll find it.

[renamerusk]

At one time I had AMR benefits which were transferred to the spinoff I eventually wound up in. When my division was purchased by what I'd consider a "Vulture Capitalist" / "Corporate Raider" cloaked as an IT company that extended its existence more than a decade by doing nothing more than buying the IT segments of companies, absorbing their assets, human assets, contracts, revenue streams followed quickly by the offloading of higher cost employees once a solid knowledge transfer had been completed. Most companies with the misfortune of offloading their IT services, 100% of the companies I knew of, were in financial hardships within 5 years of signing away their technical edge. The company that eventually bought them could ultimately become their final financial casualty, which even I thought was impossible. The Corporate Raider I worked for was affectionately known by its employees as The Borg.

Employee Benefits Harvesting:

Once the ink was dry on the deal that dealt with my benefits, I lost 110 sick days that I had acquired over 11 years of never missing a day of work, all in all I lost about a years worth of severance package. After leaving the company that had absorbed my sick days I realized I had been PAYING them to take the tax write off for providing me with medical and dental and really crappy coverage, the kind of coverage they make legal movies about, it was cheaper for me to buy my own on the open market. ALL the great benefits that were marketed to prospective employees either didn't exist or actually cost you more than the average guy on the street. Within 1 year I was being flown from company to company helping them do the same thing to other employees.

How does this work? Companies venture capitalists take over aren't actually "in trouble" they typically just have more assets than liabilities so no matter the outcome, they get paid. That's why the word Vulture fits so well in Vulture Capitalist.

2 years prior the the target company being "acquired" the target companies' board files 8-K forms with the SEC stating something on the order that if any board member is forced out of their position ALL bonuses, stock options, salaries, performance raises, often 5 years out, will be immediately VESTED and PAID IN FULL. Due to the corporate raider I had become part of being taken over, the lowest paid person was a secretary which received $12,000,000.00. This ensures the board and higher executives all have full buy in, as well as being insulated from the wrath that follows. I suspect this is why you'll never see Mitt Romney's tax returns before the GOP Primaries are completed and God forbid Presidential election.

6 months prior to being taken over, the group I was in, was told in order to make the deal work we had to have more heads, that according to their formula, for the amount of work the 11 members of my group accomplished we needed 32 heads, which we quickly hired, the youngest, lowest paid heads we could find, which sat around playing games for about a year. That's when I realized what we hired them for. The contract everyone signed when they came over ensured nothing would change within the first year. Day 1, Year 2, severance packages dropped to two weeks and the blood letting began, thousands of people with 15, 20, 30 years of service and some serious benefits were walking out the door "in equal numbers" with the new hires, all with little more than pictures and cardboard boxes.

After a few quarterly rounds are completed, bonuses are reallocated and levied out to those helping deal with the grief, any push back from the executive ranks often resulted with entire lines of management being culled. The really pathetic part was any time stock prices ran the risk of not meeting the upper rung's vesting price breaks, guess what, larger layoffs announced, stock price met. It got to the point where the order came down than "Any employee documenting or informing a customer that the problem or outage with their system(s) was due to the person or person's with key knowledge of that system no longer working for the company, would be immediately terminated."

I'm sure if the AMR structure remains, due mainly to the people I know that still work there or have recently gone back, employees will be treated as fairly as economically feasible and humanly possible. If it's a take over / merger, best term I can think of, Feeding Frenzy.

"That's what I'm talking bout"
Two thumbs up!

Keep Fort Worth folksy

[renamerusk]

Still holding out hope for a stand alone American Airlines to emerge out of bankruptcy.

 

Keep Fort Worth folksy

[RD Milhollin]

Speculation builds that an AA / USAir merger is going through, could be announced next week

 

http://www.star-tele...merger-may.html

[renamerusk]

Speculation builds that an AA / USAir merger is going through, could be announced next week

 

 I will preface my remarks by stating that this process has been long and complex and only the diehard followers could have kept up with the details; and that I don't assume to know the nuts and bolts surrounding all the complicated issues besetting AA; however, I will repeat that IMO, a merger between AA and USAir is a step which is really dicey and could very well backfire. 

 

Mergers between a large and small airline seem to be far less complicated than mergers between comparably sized large airlines like United-Continental or Delta-Northwest. Just as recently as this new year, United is laying off significant numbers of personnel so as to remain competitive.  Conversely, the Southwest-AirTrans merger has happened without any glitches and seems to be on a hiring trend.

 

Imagine AA adopting the Southwest Model.  It would be a SWA on steroids.  With its well recognized brand name and the refitting of its equipment, AA should have no trouble wielding its brand nationally and globally to garner business accounts and corporate accounts in the major domestic business centers and international business and leisure markets.  More qualified analysts are sure to have better insight than me; but I am dubious about the need to be in every major and sub-major market. 

 

I do wish AA all the best in good will; and hope that things really work out for the airline.

 

Keep Fort Worth folksy

[johnfwd]

Still holding out hope for a stand alone American Airlines to emerge out of bankruptcy.

 

Keep Fort Worth folksy

After watching AA's newest TV commercial, I believe you have more than a hope.  Why go to all; the trouble with a new fancy paint job for your jets and a slick ad is you're going to end up being USAir?  As to the commercial, if you've seen it, it's a bit overblown.  You'd think those people gazing skyward with pious reverential faces were experiencing the Beatific Vision.

[mmmdan]

It's been stated for a long time that if they merge, the new airline would be called American Airlines.  USAir will be taking over, but the brand will be AA and I believe HQ will be in Fort Worth.  What better time to update your look than right before/after a merger.

[youngalum]

Guys--American is merging with USAIR.  It will be called American and based in Texas.  It is happening and preparations are already under way for the announcement next week.  Target date is no later than 2/15/13

 

The kicker is this--the new CEO from USAIR is discussing moving the HQ or renovating the current American HQ.  He prefers moving the HQ and is scouting sites in Downtown Dallas--his preferred choice.

 

The reason is several--1. Fresh start, 2. Tax incentives, 3. He thinks that Dallas projects the HQ image better than Fort Worth (some in the USAIR management see Fort Worth as too country and not a city easily identifiable as a international HQ city for its management as compared to what Phoenix projects and what Dallas projects compared to Fort Worth )

 

Don't shoot the messenger.

[ramjet]

3. He thinks that Dallas projects the HQ image better than Fort Worth (some in the USAIR management see Fort Worth as too country and not a city easily identifiable as a international HQ city for its management as compared to what Phoenix projects and what Dallas projects compared to Fort Worth )

Interesting.  I've never thought of Phoenix as particularly international as far as profile and recognition.

[youngalum]

3. He thinks that Dallas projects the HQ image better than Fort Worth (some in the USAIR management see Fort Worth as too country and not a city easily identifiable as a international HQ city for its management as compared to what Phoenix projects and what Dallas projects compared to Fort Worth )

Interesting.  I've never thought of Phoenix as particularly international as far as profile and recognition.

 

I agree with that--but that is the thinking.

[renamerusk]

Guys--American is merging with USAIR.....The kicker is this--the new CEO from USAIR prefers moving the HQ and is scouting sites in Downtown Dallas--his preferred choice.

 

The reason is several--1. Fresh start, 2. Tax incentives, 3. He thinks that Dallas projects the HQ image better than Fort Worth (some in the USAIR management see Fort Worth as too country and not a city easily identifiable as a international HQ city for its management as compared to what Phoenix projects and what Dallas projects compared to Fort Worth )

 

It sounds like you have been able to scoop the local media and Mayor Price with your insider’s information.  I presume that the wanna be new CEO, who seems to be counting his chickens before they hatch, has or is right now notifying Mayor Price of his intentions along with his justifications.  Have they thought about renaming Dallas Fort Worth International Airport (too country) to Dallas International Airport?

 

Here are my rants limited now to just two and that come to mind immediately.

 

First; there is a persistent subtext popular with some that Fort Worth’s heritage is in some way embarrassing and detrimental to its own interest.  I disagree.  It may be time for those who think so to show how that is actually being manifested.   Whether it be latin, western or southern, Fort Worth's culture is a blend that I have always known and now over time have begun to appreciate the uniqueness of it much more. Our culture is also a blend that both national and international tourists always seem to have a large appetite for. If Fort Worth is not appreciated for what it has been and what it is today, then the fault probably lies within those who are incapable of reconciling themselves to its reality.  Too country; nah, that is a bunch of bull!

 

Second; the thought of Dallas being international is a local narcissistic legend; 99% of those who believe that Dallas is international actually are from Dallas.  Come on, we are talking about this planet aren’t we?  There are some 30 cities in China that are larger and more vibrant and that would be known by an exponentially greater number of people than would be Dallas, yet we would not consider these Chinese cities international.

 

What makes a city international is not what that city does when it looks into a mirror and tells itself its important, but rather what the world actually knows of a city; a global brand that is synonymous with its city: Detroit/Automobiles; Los Angeles/Hollywood; New York/Finance; Paris/Art; Las Vegas/Gambling.  Few cities have that kind of global branding; Dallas is not one of them in my opinion.  it is more a regional center that projects no particular distinctive brand and is lesser global presence than Chicago, San Francisco or Moscow.  I am struck by the impression held even in this country by both the East and West Coasts who generally view everything in between them as just a 5-hour flyover.

 

Finally, this wanna be CEO of a new AA may actually feel this way and is entitled to his opinion; I don’t know anything materially about him.  The last time that I was really shocked and proven really wrong was by the Clinton-Lewinsky affair.  This may be one of those occasions.   Yet, I think that I can be reasonably confident when I say that he and what will be left of his USAir management will get a rough, rather quick lesson in local politics once they begin to pokes the honest nest that is the  simmering Dallas and Fort Worth feud; and a lesson that he and they are not likely to forget. 

 

Stand by; the paint on the wall in Mayor Price's office will peel away when he notifies her with his plan.

[ramjet]

Guys--American is merging with USAIR.....The kicker is this--the new CEO from USAIR prefers moving the HQ and is scouting sites in Downtown Dallas--his preferred choice.

 

The reason is several--1. Fresh start, 2. Tax incentives, 3. He thinks that Dallas projects the HQ image better than Fort Worth (some in the USAIR management see Fort Worth as too country and not a city easily identifiable as a international HQ city for its management as compared to what Phoenix projects and what Dallas projects compared to Fort Worth )

 

It sounds like you have been able to scoop the local media and Mayor Price with your insider’s information.  I presume that the wanna be new CEO, who seems to be counting his chickens before they hatch, has or is right now notifying Mayor Price of his intentions along with his justifications.  Have they thought about renaming Dallas Fort Worth International Airport (too country) to Dallas International Airport?

 

Here are my rants limited now to just two and that come to mind immediately.

 

First; there is a persistent subtext popular with some that Fort Worth’s heritage is in some way embarrassing and detrimental to its own interest.  I disagree.  It may be time for those who think so to show how that is actually being manifested.   Whether it be latin, western or southern, Fort Worth's culture is a blend that I have always known and now over time have begun to appreciate the uniqueness of it much more. Our culture is also a blend that both national and international tourists always seem to have a large appetite for. If Fort Worth is not appreciated for what it has been and what it is today, then the fault probably lies within those who are incapable of reconciling themselves to its reality.  Too country; nah, that is a bunch of bull!

 

Second; the thought of Dallas being international is a local narcissistic legend; 99% of those who believe that Dallas is international actually are from Dallas.  Come on, we are talking about this planet aren’t we?  There are some 30 cities in China that are larger and more vibrant and that would be known by an exponentially greater number of people than would be Dallas. 

 

What makes a city international is not what that city does when it looks into a mirror and tells itself its important, but rather what the world actually knows of a city; a global brand that is synonymous with its city: Detroit/Automobiles; Los Angeles/Hollywood; New York/Finance; Paris/Art; Las Vegas/Gambling.  Few cities have that kind of global branding; Dallas is not one of them in my opinion.  it is more a regional center that projects no particular distinctive brand and is lesser global presence than Chicago, San Francisco or Moscow.  I am struck by the impression held even in this country by both the East and West Coasts who generally view everything in between them as just a 5-hour flyover.

 

Finally, this wanna be CEO of a new AA may actually feel this way and is entitled to his opinion; I don’t know anything materially about him.  The last time that I was really shocked and proven really wrong was by the Clinton-Lewinsky affair.  This may be one of those occasions.   Yet, I think that I can be reasonably confident when I say that he and what will be left of his USAir management will get a rough, rather quick lesson in local politics once they begin to pokes the honest nest that is the  simmering Dallas and Fort Worth feud; and a lesson that he and they are not likely to forget. 

 

Stand by; the paint on the wall in Mayor Price's office will peel away when he notifies her with his plan.

 

Love this, renamerusk.  Very insightful.  If youngalum is correct, the folks at USAIR clearly have not done their homework on their new surroundings.

[jefffwd]

Bloomberg Update:

 

A merged airline would realize at least $1.2 billion a year in savings and new revenue, according to Tempe, Arizona-based US Airways, which has said it would keep the American name in a merger and its Fort Worth headquarters. It began pursuing American in January 2012.

[youngalum]

Bloomberg Update:

 

A merged airline would realize at least $1.2 billion a year in savings and new revenue, according to Tempe, Arizona-based US Airways, which has said it would keep the American name in a merger and its Fort Worth headquarters. It began pursuing American in January 2012.

1.  Of course they are going to say the merged carrier will be in Fort Worth because they are making a point to folks in the Phoenix area that the HQ will be in Texas.

 

2.  a family member is working on this merger as I type this.

 

3.  The new CEO of the combined company used to work at AA and is familiar with DFW

 

4.  The Fort Worth HQ will either be remodeled or a new HQ will be found--they are commercial realtors in DFW that are assisting and the focus has been downtown Dallas or Las Colinas, not any sites in Fort Worth.

 

I hate to be the messenger here, but that is what I know and my sources are not wrong on this one.

[Austin55]

Tell your source to come to DTFW

[renamerusk]

1.  Of course they are going to say the merged carrier will be in Fort Worth because they are making a point to folks in the Phoenix area that the HQ will be in Texas.....3.  The new CEO of the combined company used to work at AA and is familiar with DFW.....4.  The Fort Worth HQ will either be remodeled or a new HQ will be found--they are commercial realtors in DFW that are assisting and the focus has been downtown Dallas or Las Colinas, not any sites in Fort Worth.....

 

There are things that sound really suspicious about the message we are getting:

 

#1 - If the point to be made to folks in Phoenix is that the HQ will be in Texas, why be so specific as to say as you remarked “the merged carrier will be in Fort Worth” instead of simply saying the DFW area?  Is it actually an unwise attempt to deceive the folks in Fort Worth? Surely Phoenix could not care less whether it be in Irving, Dallas, Fort Worth or Arlington, they have been told that it will be Texas, so what difference does it make to them? On the other hand, it makes a big difference to Fort Worth.

 

#3 - The new CEO is familiar with DFW.  It does not sound as though he is as familiar with the FW part of D-FW as he needs to be. He will quickly discover that he really needs to be as I predict he is headed for a hard landing.

 

#4 – They are commercial realtors in DFW.   What commercial realtors other than Dallas realtors would not consider Fort Worth; really!  Now really, is the FW part only for show?

 

If this merger does actually happen, how does the new expenses of furnishing and leasing a new HQ in downtown Dallas enhance the bottom line: and as SWA has so smartly done with its own headquarters juxtaposed to its operations at their airport, how does distancing themselves from their network of flight and support operations improve their effectiveness or efficiency.

 

I suspect that this has already become a divisive issue between the jostling, egomaniac CEO’s and may be the source of this “any minute now it will happen” merger drama now ongoing.

[John T Roberts]

It would seem to me that the most practical thing to do would be to remodel the existing HQ buildings.  The airline could have a "new" start without the expense of relocating.

[jefffwd]

Seems to me that it just does not make sense to relocate to downtown Dallas.  Why find a place to rent when you have a headquarters building that AA owns?  Also, the current HQ is practically in the airport.  Not to mention the increased commute times for the employees that live in FW.  Makes sense to stay put and remodel but what do I know?

[ron4Life]

It would seem to me that the most practical thing to do would be to remodel the existing HQ buildings - #John T Roberts

Somewhat true about the expense part, but the new AA need to relocate their HQ in downtown Fort Worth so there is no confusion. IMO I think this Metroplex has been spreaded out for far to long, its time to move inward. Bell Helicopter / Alcon / Acme Brick / BNSF etc. all need to setup HQ in the city center area.

[Austin55]

AMR board approves merger with US Airways, announcement expected Thursday

 

Read more here: http://blogs.star-te...l#storylink=cpy

[ramjet]

From the US Airways website:

 

Corporate headquarters:
111 W. Rio Salado Parkway
Tempe, AZ 85281

 

Tempe?

 

According to the 2010 census, Tempe's population was 162,000.  Tempe appears to be a suburb of Phoenix.

 

Just forwarding information, folks...

[renamerusk]

Seems to me that it just does not make sense to relocate to downtown Dallas.  Why find a place to rent when you have a headquarters building that AA owns?  Also, the current HQ is practically in the airport.  Not to mention the increased commute times for the employees that live in FW.  Makes sense to stay put and remodel but what do I know?

 

I think you know more than you give yourself credit for.

[renamerusk]

AMR board approves merger with US Airways, announcement expected Thursday

 

Listen very carefully to the words in their statement.  I think that it will be very, very important for the new management to strike the right tone towards Fort Worth if it hopes to avoid any backlash coming from the folks in Tarrant County.  Let see how they handle themselves.

[johnfwd]

Since I don't subscribe to ST, this is an AP article on the merger announcement.  According to the article, the new AA will be based in Fort Worth.  Happy days!

 

http://start.toshiba...ap.org>&ps=1011

[Russ Graham]

The FWST article on the merger this morning also repeated that the HQ will stay in Fort Worth. 

[youngalum]

The company will be headquartered in Dallas-Fort Worth while maintaining a significant corporate and operational presence in Phoenix.

-------------------------------------------------------

This is the official announcement from the airlines new CEO.  Notice it does not say Fort Worth will be HQ, but rather that DFW will be HQ.  This is all cover for the decision to be made to redo the current HQ or move to either downtown Dallas or Las Colinas.

 

If you notice in the language about the merger that "while maintaining a significant corporate and operational presence in Phoenix"--that is the out that will allow them to redo the current building or move--since a significant corporate and operational presence will be staying in Phoenix the existing buidling in Fort Worth will not be utilized as it currently is today. 

 

This is the language that gives them the out to move if they want to a smaller HQ location, thus the plans to look around 1st and if not moving to redo the current building.

 

You guys can jump up and down all you want, but I trust my sources on this since they are in the business.

 

http://aviationblog..../02/12300.html/

[johnfwd]

The company will be headquartered in Dallas-Fort Worth while maintaining a significant corporate and operational presence in Phoenix.

-------------------------------------------------------

This is the official announcement from the airlines new CEO.  Notice it does not say Fort Worth will be HQ, but rather that DFW will be HQ.  This is all cover for the decision to be made to redo the current HQ or move to either downtown Dallas or Las Colinas.

 

You guys can jump up and down all you want, but I trust my sources on this since they are in the PR business and American is their biggest client.

 

http://aviationblog..../02/12300.html/

 

This is beginning to sound like a game of "kiss and tell."  Not amusing, really, because of the serious economic impact to Fort Worth of a corporate headquarters move.  Is there "insider" information in your posting above that there's a definite plan to move HQ to Dallas?  I used to be a newspaper reporter, but I have to tell you our local (especially S-T) reporters are dimwitted if they don't probe the merger authorities on this issue!

[Russ Graham]

Nobody's jumping up and down.  We're just pointing out that all the available public sources list "Fort Worth" as the location of the HQ of the combined company.    Your inside information is that "they might move or remodel" - so, how does this make them any different from any other company?  It's not news until they decide to actually move.  As several people pointed out, their current location is going to be pretty hard to beat.

[JBB]

When it comes to insider information, I usually subscribe to the theory that those who really know don't talk and those who talk don't really know.  I guess we'll see in this case.

[360texas]

Maybe FWST is carrying this in their "e-paper" online version

 

You can read it now by going to Reuters.

 

Reuters: by Soyoung Kim and Karen Jacobs

Thursday Feb 14, 2013, 2:18pm EST

"American Air unites with US Airways to create No. 1 carrier"

 

Partial quote:

 

"The new American will be based in Dallas-Fort Worth, Texas."

 

http://www.reuters.c...E91D0MF20130214

 

->>>  and companion report 

 

 

By Soyoung Kim

Thu Feb 14, 2013 5:33am EST  

"US Airways watched American flounder, then pounced"

 

Partial quote:

 

"Now comes the hard part. The combined carrier is to be branded American Airlines, based in Fort Worth, Texas, where American is currently based, and will be part of the oneworld global airline alliance, of which American is an anchor member."
 

http://www.reuters.c...E91D0GS20130214

[johnfwd]

If the CEO of US Airways does, indeed, have a condescending attitude toward Fort Worth, it still gets my goat even if AA has decided to stay here at least in the short term.   Which exalted presence of an international corporation would truly satisfy this almighty executive to change his mind?  I guess the following corporations having HQs or major divisions in our city is not good enough for him:  Alcon, Bell Helicopter, BNSF Railroad, Cash America, D R Horton, GE Locomotive, Lockheed-Martin, O B Macaroni, Pier 1 Imports, RadioShack, XTO Energy, to name a few.  Sorry, guy, we apologize for not having IBM.

[RD Milhollin]

I certainly hope that AA stays in Fort Worth. There is a long history of FW and AA together, and the current location adjacent to the largest AA hub makes a lot sense, financially (that's what this recent stuff is all about, right) and logistically. I personally think it would be cool for AA to build a 50 story HQ tower in downtown, but more realistically, youngalum's contention about Downtown Dallas or Irving would make sense if the significant vacant office space is taken into account. There would seem to be plenty of room in either place, with volume discounts, for a major corporation to move in; This is something Fort Worth cannot offer. I would guess that if AA stated they wanted to office in DTFW a developer would step up and offer to build to spec. This could be the impetus for XTO to develop the parking lot in the center of their downtown campus. Perhaps they could convince AA to work on natural gas-power aircraft in the negotiation process. 

[renamerusk]

I hate to be the messenger here, but that is what I know and my sources are not wrong on this one.

 

The company will be headquartered in Dallas-Fort Worth while maintaining a significant corporate and operational presence in Phoenix......This is the official announcement from the airlines new CEO.  Notice it does not say Fort Worth will be HQ, but rather that DFW will be HQ.  This is all cover for the decision to be made to redo the current HQ or move to either downtown Dallas or Las Colinas...This is the language that gives them the out to move if they want to a smaller HQ location, thus the plans to look around 1st and if not moving to redo the current building... but I trust my sources on this since they are in the PR business and American is their biggest client.

 

To be fair, the new CEO has yet to make an official statement one way or another regarding HQ decisions; or surely if he had issued such a statement, the Fort Worth and the Dallas media would be reporting it as soon as it was on the record.

 

I suppose you may include me as one of those who got really worked up about a possible intra-Metroplex relocation of the AA HQ.  Then I thought that no such statement has yet to come out of the “mouth of the horse”[CEO]; but instead, is coming from the mouths and pens of unidentified and off the record sources purported to be peddling inside information and who may be dreaming of landing a lucrative six percent commission betting on rumors and hearsay.

 

There are apparently a number of carefully worded press releases that prove that Fort Worth is out of the picture: Phoenix will keep its operations; Fort Worth will be downsized and Dallas is the globalists' choice.  Fort Worth is just too  "dumb country" to be able to read the tea leaves.

 

I think that we can and should have confidence in Mayor Price and Council, the DFW Airport Board, Tarrant County Commissioners Court,  HEB Chamber of Commerce, just to name a few, for each to demand a full explanation for the reasons that AA has to foster a corporate relocation outside of their jurisdictions.  I also have confidence that there will be a robust response to any AA HQ relocation.

 

I suppose the best thing to do is to just wait and see; and to keep our powder dry.

[David Love]

I'd think they're moving their HQ to where the airport is, DFW. ...plus can you imagine doing any hanger work in Arizona?

 

So either it was a deal clincher, no brainer or the location was part of the negotiation talks.

 

...either that or they missed a HUGE opportunity to play each city against one another to see which would cough up the most incentives, which they may be doing now, but just within DFW cities.

[hannerhan]

Given all the integration work that will need to be completed over the next two years, I'd be very surprised if the combined company ends up moving the HQ during this time.  Less importantly but still relevant is the fact that American has MANY employees that live in Tarrant and Denton counties (tons in Southlake/Colleyville, etc) and those people would have a big problem with a downtown Dallas HQ.  The only people that would like to work in downtown Dallas are those that can afford to live in Highland Park, and that's going to be a short list.

 

So maybe youngalum's sources are correct, but I'd be surprised if a HQ move was anywhere near the top of the list right now for the new executive team.

[Keller Pirate]

I have seen corporate HQ's with as few as 25 people locate in cities away from their main operations facilities.  It sounds like what youngalum is describing is something like that.  They might move the executive staff out of the operations HQ by the airport to a more prestigious location and the thousands of folks that run the airline will continue doing what they are doing in the same place.  Think AMR moves off campus and AA stays where it is.  I don't see getting worked up about this until some official announcement is made.  The merger itself may not be complete this year.

[renamerusk]

And at last, the "Fat Lady" is singing:  They ain't going nowhere".  I suppose the rumors and speculations about a Dallas HQ was smoke and mirrors....."Kaboom!"

 

http://blogs.star-te...fort-worth.html

[Austin55]

Fantastic. I wonder if renovations are in the plans?

That Centreport area is all really nice, I hope it develops some more.

[renamerusk]

Fantastic. I wonder if renovations are in the plans?

That Centreport area is all really nice, I hope it develops some more.

 

I believe that the utmost thing that AA has to do first is to renovate its image; not superficially updating its HQ but its upping its level of customer service.  I have great hope that they can do this and everything else will fall in place.

[youngalum]

And at last, the "Fat Lady" is singing:  They ain't going nowhere".  I suppose the rumors and speculations about a Dallas HQ was smoke and mirrors....."Kaboom!"

 

http://blogs.star-te...fort-worth.html

Nothing but a PR move in that statement.  Nothing is set in stone folks except the merger is happening.  HQ final location in DFW is still pending.

[Russ Graham]

Wasn't going to pile on, but here's another article stating AA will stay in FW.
 
http://fwbusinesspre...ectionID=55&S=1
 
So now current mayor Betsy Price, former mayors Mike Moncrief and  Bob Bolen, president of the FW Chamber of Commerce Bill Thornton, are all on record stating how good it is that the airline is staying in Fort Worth.  Not "Dallas/Fort Worth", but "Fort Worth".
 
Also, two separate newspapers, FWST, and FWBP, have stated as fact that the airline HQ is remaining in FW.
 
If all the above-mentioned political figures and news outlets are "wrong" and you're "right", then this is a very well kept secret.