This Day On The Street
Continue to site
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

AMR CFO: We Have Momentum; Analyst: We Still Expect a Merger

Meanwhile, American is adding both new flight attendants and new aircraft. The carrier said Wednesday it will hire more than 1,500 new flight attendants during the next year, with hiring to begin in November and training to begin in January. American credited "the overwhelming response by current flight attendants to the company's recent voluntary separation options." About 2,250 flight attendants are leaving.

"This is a way for us to bring in a new work force and to help (remaining) senior flight attendants to quickly progress through the seniority list," enabling better schedules, Goren said. She noted that initially, however, new hiring will bring increased training costs, with training scheduled to begin in January.

Additionally, American is transforming its fleet. During the quarter, the carrier took delivery of seven Boeing 737-800s, bringing the year's delivery total to 19 aircraft, with nine more scheduled to be delivered in the fourth quarter. During the quarter, the number of 737s in the fleet will exceed the number of MD80s for the first time. Delivery of 59 new aircraft is scheduled for 2013. American expects to have the industry's youngest fleet by 2017.

On Tuesday, American creditors asked the bankruptcy court judge to extend the carrier's exclusivity period by a month to Jan. 28. "We believe it is largely a direct result of the pilots recently re-engaging with AMR management to negotiate a new collective bargaining agreement," Wolfe Trahan analyst Hunter Keay wrote, in a report issued Tuesday. "This does not change our expectation that US Airways and AMR will announce a merger while AMR is in bankruptcy."

The next key date in the saga comes at the end of the month, when a non-disclosure agreement expires. During the two-month NDA term, the carriers have reviewed each others' financial information on a confidential basis. Various possibilities exist when the NDA ends: US Airways could launch a hostile bid, the two carriers could jointly proceed on a merger, the NDA could be extended, or US Ariways could walk away.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LCC $0.00 0.00%
DAL $42.25 -0.66%
UAL $53.49 -0.39%
YHOO $43.07 -0.71%
AAPL $131.78 -0.20%

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs