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What Will It Take For AMR to Survive?

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    Boyd Group International President Michael Boyd weighs in on the future of American Airlines.

  • Duration 4:01
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This transcript is automatically generated

The US Airways among the possible suitors for American Airlines now in bankruptcy.

Our next guest says the very idea that American could be acquired by another airline.

Gives it additional leverage in negotiating with its unions Michael Boyd is the president look at the national and he joins us now from Denver.

Michael always getting new to me here to explain these complicated is kids to deal with airlines.

But first and foremost.

I AMR the parent of American has eighteen months to put -- -- plan in place said nothing's gonna happen in the short run -- None nothing where everybody is looking at the threats and opportunities even our little company is but nothing's gonna happen and tell another eighteen month yourself.

What about the leverage -- American though if it was acquired would get over the union's up above and beyond just -- negotiating and talking about concessions.

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Seniority list who's gonna represent.

And when every -- an airline there's a lot of employee pain so.

The employees and American Airlines -- -- loyal but I think they're gonna come to the party well with management -- will come to the party with them.

And I think they're not gonna have to face this merger think is nobody wants to do what America and be a better airline if it stayed independent.

And didn't have to merge with and other.

Oh I have I believe I think actually what they don't have though we probably have is that.

Debt service and they have a pension plan beyond that if they -- have that they'd be strongly profitable airline today so that's what they have to get rid of their operating system makes sense right now.

They're fleet plan makes sense that going forward is just getting rid of the debt as they can do that they're fine.

Are they losing customers what is the danger of them losing business while they are -- bankruptcy protection.

Today a bankruptcy means nothing to the consumer we've heard over and over again mean we grew up bankruptcy make you wanted to business and and and left the building and -- Today it's it's illegal exercise so I don't think Americans love any business whatsoever as a result of this lawyers have made a lot of money we have lost in the past yours but do you.

Think that -- say who with the partner and a US Airways whim say TPG.

That they do make serious runs at AMR.

If AMR doesn't have a plan and eighteen months if something hangs up.

They'll try to make a run -- enemy it -- very well managed I was US Airways they can see opportunities.

They may they may make make a run for part of it.

But it an -- Leno and then on a -- -- really happened but sure they're they're Smart people they're gonna be looking what the opportunities may be down the line.

Would selling off just pieces of America like would a delta wanna come in there and just pick off.

Certain routes that American hats or certain gates.

There are a lot of roots -- American has.

That anybody else couldn't get themselves.

Unlike delta American doesn't have a hub in Tokyo that anybody would would really want other than some slots -- Chicago and some -- plots in New York -- -- a national.

That isn't really there but -- there are there may be some things they might want they might want some of the south American authorities but the adult they can build those on the around so.

Piecemeal I don't see -- happening what about.

Overall state of the airlines and then and the next year Michael because if -- fly and you're starting to pay higher airfares for the year you're getting hit every which way to Sunday.

With additional -- which by the way they just have to now start advertising all the -- you get hit -- But in the it seems like that would leave these airlines and a pretty in pretty good condition except for the cost of jet feel.

-- that the deal is we think the airline industry is gonna be pretty profitable going forward.

And the reason being is airlines are not chasing demand anymore what they're gonna carry is is they -- and they want.

Michael.

Thank you for being here we're gonna -- wrap this up.

We're waiting for Jon Huntsman to come out and essentially.

-- that he is giving.

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