US Airways announced that they had bought a small amount of American Airlines holding company AMR’s debt.  They purchased $1 million in debt for $600,000.  This enables US Airways to have status as a creditor of AMR in court and, potentially, gain more insight into AA’s bankruptcy strategy.

It gives US Airways a seat at the table in a more formal sense and is enough to be taken seriously without being so much as to alarm the markets.

But AMR couldn’t resist speaking out against it.  American Airline’s spokesman told the Dallas Morning News that it was a publicity stunt and nothing more.  I would suggest that American Airlines play that publicity game very, very carefully.  Ridiculing a suitor and the only viable suitor for a merger and while you are under bankruptcy protection with creditors who already aren’t sure you’re acting in their interests or your own, seems foolish.

Acting snide can have the effect of making the financial markets and creditors think you’re behaving above your position in this bankruptcy.  While it is a company who is in bankruptcy and it is other companies who are the creditors (with the exception of large labor groups), the people participating in this process are all human beings.  Human beings are capable of being offended or annoyed and those human beings control the destiny of American Airlines in large part.

Filed under: Airline News by ajax
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