AA Ch 11 coming soon

[spacecadet1]

OK don't shoot the messenger, but heard from someone high up in the finance community, that we should expect to see AA on the court steps in the next week. Hang in there guys!

 

[Cpt Oveur]

Not a good time to negotiate a contract...

 

[ArcadiaMaxima]

How can you declare bankruptcy with 6 billion cash on hand

Sent from my DROIDX using Tapatalk

 

[poppi]

Sure does not look like it with stock traders if your friend is so sure tell him to short the stock.

 

[satpak77]

doubt this is true. nobody said they are in the healthiest shape but ch 11 ? aint buying it

 

[filejw]

How can you declare bankruptcy with 6 billion cash on hand

Sent from my DROIDX using Tapatalk

Well I don't know anything about AA but if you owe 20 billion with out a way to pay it back CH 11 is usually next.

 

[The Prussian]

If true, this would not surprise me in the least. All the other legacies used the bankrupcy courts to duck out of their pension promises. What I'm wondering about, at this point, is how would a bankrupcy filing under the new rules affect AMR. Any guesses out there???...

 

[Draginass]

Bring it on, Baby!!

However, that's BS. The senior leadership isn't done looting the company coffers yet. Still at least a year or two's worth of cash to shovel out the back door.

 

[Red Baron]

Doom and gloom. We see enough of it on the news. Enough already.

 

[tomgoodman]

Well I don't know anything about AA but if you owe 20 billion with out a way to pay it back CH 11 is usually next.

But first, you might use the threat of Ch 11 to extract labor concessions and loan restructuring. That's the usual routine.

 

[jonjuan]

Doom and gloom. We see enough of it on the news. Enough already.

Just keep putting your head in the sand. The us consumer has massive debt with very little savings. The housing market is ready for another dip. The government credit is being downgraded. The debt continues to climb. Social Security and Medicare will be a thing of the past in 15 years. Baby boomers keep raping the country for their own gain (there will soon be no age limit in 121 as with 135/91). We're now fighting 3 wars (who's next) we can't afford. Oil is heading up with no drop in sight. Gas will soon see closer to $5 than $4. Etc, etc....

 

[jonjuan]

But first, you might use the threat of Ch 11 to extract labor concessions and loan restructuring. That's the usual routine.

Look at it any way you wish, but CH11 made Delta and CAL healthier, fwiw.

 

[pilotgolfer]

UAL CH 9 Coming soon

When I first saw the title of the post...I was thinking AA was going to have a Channel 11 like UAL has a Channel 9.

 

[AA717driver]

I believe you just have to show that AA's operation is unsustainable which is pretty easy to do with the current cash burn.

Labor costs are the highest among the legacy carriers and all three labor groups are ready to strike. Eagle's operating costs are way above those of other feeder ops and their virtually worthless fleet of ERJ's (to which AMR holds the mortgage) cannot be sold for enough to buy lunch for the BOD.

All it takes is a phone call from Arpey to the NMB to "loose the hounds!" and a two day strike will force AMR's hand.

You can't use Ch.11 to dump pension plans but as the only remaining pax airline with a defined benefit pension, it wouldn't be too hard to get the judge to axe that from the new 1113-implemented contract. A frozen pension plan or one managed by the PBGC is far better than a growing DB plan with several thousand soon-to-retire pilots walking out the door with a couple million bucks.

I've felt for a long time that a Ch.11 was the smart thing to do from a management pov. Now, for current management to do it as a prepack in order to keep feasting on the carcass for a few more years is the trick.

TC

 

[Red Baron]

Just keep putting your head in the sand. The us consumer has massive debt with very little savings. The housing market is ready for another dip. The government credit is being downgraded. The debt continues to climb. Social Security and Medicare will be a thing of the past in 15 years. Baby boomers keep raping the country for their own gain (there will soon be no age limit in 121 as with 135/91). We're now fighting 3 wars (who's next) we can't afford. Oil is heading up with no drop in sight. Gas will soon see closer to $5 than $4. Etc, etc....

You forgot one...The sky is falling too! It ain't perfect in the world, but it never has been. There is hope for tomorrow, and he isn't in Washington.

 

[B727Driver]

Look at it any way you wish, but CH11 made Delta and CAL healthier, fwiw.

At what cost? I can name pensions, pay cuts, scope, loss of benefits and more. Are you ready to give up more?

 

[General Lee]

But first, you might use the threat of Ch 11 to extract labor concessions and loan restructuring. That's the usual routine.

Tom,

Remember GG (or JG) saying "Do it once, do it right." He was saying that for a 30% paycut to stay out of BK. Then, after we got into BK, they asked and got 17% more. A 47% pay cut and a gutting of our contract. BK does suck, and I wouldn't wish it on anyone.


Bye Bye--General Lee

 

[tomgoodman]

Tom,

Remember GG (or JG) saying "Do it once, do it right." He was saying that for a 30% paycut to stay out of BK. Then, after we got into BK, they asked and got 17% more. A 47% pay cut and a gutting of our contract. BK does suck, and I wouldn't wish it on anyone.


Bye Bye--General Lee

Yes, I remember. Had been retired for a couple of years by that time, but kept up with the DALPA forum (until we were booted off). The lesson is that pre-bankruptcy concessions merely shift the starting point for in-bankruptcy concessions. Anything gained in return, like a Bankruptcy Protection Letter added to your contract, can also be voided in bankruptcy. It's become Management's ultimate weapon against Labor.
One reason the pension had to be dumped was that the 47% pay cut would have caused active pilots to receive a smaller monthly check than retirees. That would have been a hard sell.

 

[Full of LUV]

Just keep putting your head in the sand. The us consumer has massive debt with very little savings. The housing market is ready for another dip. The government credit is being downgraded. The debt continues to climb. Social Security and Medicare will be a thing of the past in 15 years. Baby boomers keep raping the country for their own gain (there will soon be no age limit in 121 as with 135/91). We're now fighting 3 wars (who's next) we can't afford. Oil is heading up with no drop in sight. Gas will soon see closer to $5 than $4. Etc, etc....

Happy Easter....

The good news is I just saved 30% by switching my car insurance....

 

[Citjok]

AMR stock is at 5 dollars and change. They are still on the game.