This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

AMR Counters US Airways Bid With New Seat Plan, Better Stats

Stocks in this article: AAMRQ.PK DAL LCC

DALLAS ( TheStreet) -- Bankrupt AMR (AAMRQ.PK) stepped up its resistance to the takeover bid by US Airways, (LCC), unveiling new passenger amenities including lie-flat business class seats and also releasing strong April unit revenue results.

"We have a lot of challenges ahead of us," said Virasb Vahidi, AMR chief commercial officer, in an interview following a media event, held aboard a Boeing 777-200 and focused on improved technology and fleet modernization efforts. "Our transformative initiatives are a clear signal to our customers and to our people that we believe in our future."

American's fleet modernization plan includes lie-flat seats in its fleet of 47 Boeing 777-200s and in the approximately 30 767-300s it intends to keep, as well as increased legroom in a new coach product called Main Cabin Extra, which will be available to premium passengers as well as to passengers who pay extra.

"Our plan is to bring this airline back to the leadership position where it belongs," Vahidi said. Earlier, he defined American as "this nation's flag carrier." As for continuing efforts by US Airways to gain backing from labor and from Wall Street analysts for its takeover bid, Vahidi called it "a lot of noise in the background (with) no impact on the process, which needs to be followed step by step."

In the current case, AMR has exclusivity until Sept. 28 to submit a plan of reorganization. By definition, the bankruptcy process looks favorably upon a debtor-in-possession's reorganization plan, although creditors have some influence. How much is uncertain.

Vahidi noted that AMR has recently been discussing its plan with Wall Street analysts. He anticipates support, he said, "once the analysts start to understand the details."

In April, American reported that its passenger revenue per available seat mile grew at 11.6% over the same month a year earlier, apparently the highest growth in the industry, a result of high load factors and a strong pricing. Vahidi said a key factor is that, after long delays, the impact of American's joint ventures across the Atlantic and Pacific is starting to kick in: Delta (DAL)has said several times, on earnings conference calls, that it can easily take years to realize the full benefit of such deals.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,891.33 +86.53 0.49%
S&P 500 2,072.57 +1.92 0.09%
NASDAQ 4,774.0440 +8.6640 0.18%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs