Skift Take
This revelation will create huge ripples for a week among all kinds of vested interests in and around the aviation industry, and then nothing will happen. At least nothing that will be benefit any of the employees of both airlines, or even less so, the passengers.
On American Airlines’ hesitancy on considering a merger with US Airways before emerging from its own bankruptcy procedure? A giant payday. American Airlines’ new chairman and CEO Tom Horton and his management team stand to receive somewhere between $300 million and $600 million if he can make it through bankruptcy court without merging first with a rival like US Airways.
In an odd twist of the bankruptcy process, airline management teams have typically managed to extract 5 percent to 10 percent of the company’s shares for themselves upon exiting Chapter 11, with the C.E.O. often getting 1 percent. AMR is expected to be valued at as much as $6 billion if it exits bankruptcy independently, analysts estimate.
American Airlines and US Airways Dance Around a Merger – NYTimes.com.
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Tags: american airlines, us airways