Is the court attracted to US Air plan? – 5.02.12

Is the court attracted to US Air plan?

Wed May†2,†2012 9:32†pm (PDT)

Analyst: AMR may have sensed bankruptcy court is attracted to US Airways plan

Read more here: http://startelegram.typepad.com/sky_talk/#storylink=cpy

The executive shuffling and retirements announced by American Airlines on Tuesday has led one Wall Street analyst to believe that the company may be worried about a potential US Airways bid.

Gimme Credit analyst Vicki Bryan said American’s labor troubles have lasted for more than decade and under former senior vice president Jeff Brundage’s watch, the carrier’s relationships with its union have deteriorated to the point where the unions are publicly supporting US Airways.

"AMR seems to be signaling that it has become alarmed enough by recent developments to suddenly sack the veteran wrangler of its decade-long position toward labor. This could mean AMR has sensed that either the bankruptcy court is becoming attracted to the US Airways plan versus its own restructuring plan or that the court is just plain losing confidence in AMR management’s ability to manage its way out of this mess," Bryan wrote in an investor note on Wednesday.

-Andrea Ahles