AMR CEO Ridicules Possible US Airways Bid

[Stocks-to-Watch]

It’s a little odd for AMR (AAMRQ), owner of American Airlines, to be strutting around making fun of other airlines right now; the company is bankrupt, its stock has been delisted, and it’s planning to lay off about 13,000 people and end its pension plan.

But Chairman and CEO Tom Horton is clearly feeling confident enough to take a jab at US Airways (LCC). US Airways is one of the companies reportedly mulling a bid for AMR. Here’s what Horton said in a meeting with the editorial board of the Dallas Morning News:

“Let’s go back and look at history a little bit. This is not US Airways’ first attempt at this. This is a small company very strategically limited, I would argue – not any international flying, hubs of less strategic importance.

This will be their fourth try at this: Twice for United, once for Delta while they were restructuring, now American. I would argue that this will be every bit as successful as their prior tries. I’m not sure what’s in the water out there in Phoenix. Maybe it’s the cactus. I don’t know what it is.

But look, if we don’t get our act together, all sorts of things become possible. It’s very important that this company demonstrate progress on a credible business plan. And I think we’ve got a great one. I could not be more fired up about the future of American Airlines beyond the structuring.”

I checked with AMR’s media relations folks and they confirmed the quotes.



Original Article Source by Barrons.com