By Michael Garko, In Airline News
United States Senator Kay Bailey Hutchison has released a statement regarding other airline’s attempt to acquire American Airlines while the Fort Worth-based airline is in bankruptcy.
Courtesy American Airlines
“I’ve seen the public reports about hostile takeovers involving American Airlines, including another airline that is communicating directly with American’s creditors and unions. I’m concerned about the potential disruptive effects of such efforts during the ongoing bankruptcy proceedings, and ask that all airlines give American and the committee of creditors an opportunity to complete the bankruptcy reorganization process. Completing this essential step is in the best interests of American’s employees, creditors, and the communities served by American Airlines. Any merger discussions can occur when the bankruptcy court has cleared the process by which American can emerge from court supervision.”
That statement has a different tone than the Texas Senator’s statement regarding Delta’s merger with then Memphis-based Northwest Airlines. Delta’s main headquarters are in Atlanta, Georgia.
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In October 2008, in regards to the Delta-Northwest merger, Hutchison stated:
“I like to have more American airlines competing with each other, and giving the consumer the best service and price.” She later added “I don’t think it’s the role of Congress to step in and try to impart our policies on these airlines, at least not as it applies to mergers.”
American’s parent company, AMR Corp., filed for bankruptcy protection in November. Since then, Delta Air Lines and US Airways have announced they are looking into a possible merger with American.
In an effort to cut costs, American has asked bankruptcy courts to allow the airline to break union agreements. The airline is also considering up to 13,000 job cuts.
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