111 AA pilots retired on 9-1-11!

[igneousy2]

A stock buyback is something that companies that are making money do to make shareholders happy. If your operation is not producing cash...like AMR...a share buy-back program is not sustainable.

Also, if AMR did what I think you are proposing...buy a whole bunch of shares on a certain date in an effort to manipulate the closing price of the stock on a certain date....well, that would be a CRIMNIAL act and could get AMR and there management into some deep kim chee with the SEC.

Besides, it would be far cheaper to just recall some extra pilots, heck, it would be far cheaper to wet-lease a bunch of MD-11 from World and pay to settle the grievance that APA would file.

 

[Andy]

Don't see how the stock "buy-back" program will work.....AMR has no money. Hence the BK talks. Going to get interesting.

AMR had $5.6B in cash and short term instruments at the end of last Q. Only $457M was restricted. http://phx.corporate-ir.net/Externa...9NDMzMjU5fENoaWxkSUQ9NDUxNzI5fFR5cGU9MQ==&t=1

Granted, they need in excess of $2B just to end Ch 11. Go below that and it'd be Ch 7 because once you declare, all lines of credit go *poof*.

Note that they were $100M cash flow positive in the last quarter, in spite of reporting a loss. It probably wouldn't even take a $100M stock buyback to boost the stock to ~$5/share.

There are ways to obtain buyback money - issue new bonds or borrow money against assets. I don't know if AMR has any unencumbered assets and I'm not going to dig around to find out.
This wouldn't be the first time that a company in financial trouble bought back stock. But again, that was only one possible scenario. I don't discount any fun 'n games from any management to keep the wheels from coming off.

 

[BEfly]

What about other airlines? UA/CO, DL, AS???? Anybody have any info on how many retirements are projected in the next month? Year?

 

[On Your Six]

Andy,

You suggested AMR get a court injunction to stop people from retiring? I don't think Delta did that, since I believe a huge amount left before the BK. How would you stop someone from retiring when it is a contractual right? You are starting to scare me a bit.


Godspeed.


OYS

 

[Andy]

Andy,

You suggested AMR get a court injunction to stop people from retiring? I don't think Delta did that, since I believe a huge amount left before the BK. How would you stop someone from retiring when it is a contractual right? You are starting to scare me a bit.

Yeah, and I thought that calling in sick or not volunteering for overtime was a right. I've been proven wrong by the judicial system on both counts.
Will it work? I don't know. Would you have thought that a pilot would get fired and sued for getting a divorce? Continental fired and sued some pilots. Continental lost. Link: http://www.chron.com/business/article/Continental-fires-and-sues-pilots-in-alleged-1722581.php

Suing the pilots was not a suggestion; just a possible course of action by AMR. Bottom line is if you or I have an evil, twisted thought, several lawyers have already thought of it and prepared rough outlines on how to litigate the case.

 

[thunderworm]

Is the pay of $35/hr and a 64 hr guarantee for first year accurate? What are the junior bases? Thanks.

 

[V1rowt8]

And YOU: friendless, brainless, helpless, hopeless! Do you want me to send you back to where you were? Unemployed, in Greenland?

"We are men of action, lies do not become us".

 

[matchthehatch]

Is the pay of $35/hr and a 64 hr guarantee for first year accurate? What are the junior bases? Thanks.

Pretty awful, huh? But then you get a chance to maybe make $73,000 year two. Six figures isn't reachable for a while. Aside from the former TWA guys, some of whom are going to STL, the recalled guys are all going to LGA and MIA.

 

[thunderworm]

Thanks. I was hoping that first year would be livable. I think I should stock up on ramen while I can still afford to buy it. I would like to see Doctors be told their first year pay will be below the poverty level, but next year you can feed your family. Not hating on AA just the industry as a whole. It sucks when you have a job you can't afford to stay at but van't afford to leave either.

 

[Flyby1206]

Also dont forget AA is in contract negotiations and i would bet money that the new contract will improve on the 1st yr pay.