More "good" news

averyrm

Well-Known Member
More \"good\" news

news.yahoo.com

Apparently AA might be filing chap. 11 soon.

WASHINGTON (AFP) - American Airlines, the world's largest passenger carrier, could seek Chapter 11 bankruptcy protection as early as next week, The New York Times reported.

The New York daily based its report on two unnamed bankers whom it said had been briefed on the airline's condition. One said that the airline needed 1.5 billion dollars to avoid seeking the protection from its creditors granted by bankruptcy.

Tara Baten, a spokeswoman for American, told the Times that the airline, a unit of AMR, still hoped to avoid a Chapter 11 filing.

"We continue to have face-to-face negotiations working around the clock and we remain hopeful that we can restructure the company consensually with our labor groups, rather than in the courts," she told the daily.

Management has been negotiating for weeks with its unions seeking concessions totaling 1.8 billion annually.

Concessions sought from pilots alone would total 600,000 dollars annually, the Times said.

US airlines have been stalling since the September 11, 2001 attacks on New York and Washington. The second-largest carrier, United, filed for bankruptcy last year as did US Airways, the sixth-largest.

The situation became worse with the start of the US-led war on Iraq (news - web sites) eight days ago. American announced a reduction in international flights by six percent even before the fighting began and foresees a reduction of domestic flights by seven percent by the beginning of April.
 

zombie5225

New Member
Re: More \"good\" news

How is that good news? If AMR files chp 11, chances are I will be out of a job within a month.
 

pilot602

If specified, this will replace the title that
Re: More \"good\" news

[ QUOTE ]
Concessions sought from pilots alone would total 600,000 dollars annually, the Times said.

[/ QUOTE ]

You know, management is always blaming the labor for cost issues. Yet $600,000 is one helluva long way from $1.8 Billion.

1,800,000,000
- 600,000
---------------------
1,799,400,000

That's STILL well over the 1.5 Billion they need to avoid bankruptcy.

I think that $600,000 figure is a misprint. At 30k a year that only represents some 20 pilots and I know junjior FO make more than 30k at AA. But even if it were $6 million or $60 million it'd still leave a gigantic gap between that and the 1.8/5 billion they need.

So where exactly is the other 70-99% of the cost reductions going to come from?
 

averyrm

Well-Known Member
Re: More \"good\" news

[ QUOTE ]
How is that good news? If AMR files chp 11, chances are I will be out of a job within a month.

[/ QUOTE ]

If you notice, good was in quotations. - "good" -

maybe I should have started it with [sarcasm] and ended with [/sarcasm] ?

"good" meaning bad.

It'd be so nice if the web showed inflection.
 

carlos

Well-Known Member
Re: More \"good\" news

[ QUOTE ]
I think that $600,000 figure is a misprint.

[/ QUOTE ]
The New York Times article on the web at AMR story says the following, so wherever you read $600,000 must have been a misprint:
"Early last month, American said it was asking its workers for $1.8 billion in annual wage, benefit and work rule concessions, aiming to cut a total of $4 billion from expenses every year. It has requested $660 million from the Allied Pilots Association, whose negotiators are expected to present a cost-cutting package equaling that amount to union leaders by the weekend. The leaders will probably vote on the cuts before Tuesday."
 

pilot602

If specified, this will replace the title that
Re: More \"good\" news

[ QUOTE ]
"Early last month, American said it was asking its workers for $1.8 billion in annual wage, benefit and work rule concessions, aiming to cut a total of $4 billion from expenses every year. It has requested $660 million from the Allied Pilots Association, whose negotiators are expected to present a cost-cutting package equaling that amount to union leaders by the weekend. The leaders will probably vote on the cuts before Tuesday."

[/ QUOTE ]

These figure are much more believable but that $660 million still represents only 18% of the $4 billion figure!

This still illustrates that labor, specifically the pilot group, is not the huge lead weight around these comapnies' necks that management claims it to be. The question still remains: where will the other 80% of the savings come from?
 

pavelump

Well-Known Member
Re: More \"good\" news

[ QUOTE ]
The question still remains: where will the other 80% of the savings come from?

[/ QUOTE ]

PayPal donations?
 

pilot602

If specified, this will replace the title that
Re: More \"good\" news

[ QUOTE ]
Quote:
------------------------------------------------------------------------
The question still remains: where will the other 80% of the savings come from?
------------------------------------------------------------------------

PayPal donations?

[/ QUOTE ]

Cake Walk raffles?

No offense to Zombie, I know this has gotta suck beyond belief. Hope they pull it out.
 

davetheflyer

New Member
Re: More \"good\" news

[ QUOTE ]
------------------------------------------------------------------------
The question still remains: where will the other 80% of the savings come from?
------------------------------------------------------------------------

PayPal donations?


--------------------------------------------------------------------------------



Cake Walk raffles?



[/ QUOTE ]

How about a telethon?
 

Timbuff10

Well-Known Member
Re: More \"good\" news

Well hopefully when the first major finally closes its doors, then it will spread out the consumers to other airlines so the healthiest of the rest can survive and make it back to profitability.

I think at this point, what the industry needs is to lose a big player such as United or USair so the others can survive. If everyone just hangs on for dear life then it spells bad news for all airlines and for a long time as opposed to a short time of bad news.

Apparently United losing over $300 million last month was a good thing for them? They thought their losses would be a bit higher and they beat one of their goals with only losing over a quarter of a billion dollars. They will be reaching a point very soon here where they have to post a profit and if not then its doors closed. We shall see how it turns out.

Could you imagine Chicago without UA or AA?
 

Derg

Cap, Roci
Staff member
Re: More \"good\" news

Actually, in reality when airlines start filing bankruptcy, many others follow because it gives them a great opportunity to restructure their operation under the protection of the bankrupcy courts.

Personally, when other airlines start to salivate over AA and UA's ability to cost cut and restructure their company, it just because all that more tempting to almost lead your company into BK, reformulate the business plan and "triumphantly" emerge with the requisite stock boost.
 

aloft

New Member
Re: More \"good\" news

Which is EXACTLY why the corporate bankruptcy laws should be overhauled. Not only does labor get screwed, but so do the stockholders. The only people who benefit from this are top management.

$13 million compensation package indeed....
 

sxauer

New Member
Re: More \"good\" news

man...when is it going to end? MAKE THE BAD MAN GO AWAY!
Talk about breaking my back....
 

zombie5225

New Member
Re: More \"good\" news

I know how to save AMR. Take away your employees benefits. Cut their minimum work week from 20 hours to 16. Threaten to cut their pay in half. And if they dont do it all with a smile on their face, tell them that you are going to lay off everybody and contract the work out to Signature. I think we have ourselves a plan!
 

A320_DUDE

Well-Known Member
Re: More \"good\" news

[ QUOTE ]
tell them that you are going to lay off everybody and contract the work out to Signature

[/ QUOTE ]

Please tell me AA is not seriously considering laying off all ground employees for those contract yahoos over at Signature! They frigging suck.....trained chimpazees would do better out there than those idiots!
 
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