Can AA and CAL stay out of Chap 11?

[Ex737Driver]

I see AA and CAL following suit to a Chptr 11 filing, that is the only way to ensure that hard working employees lose out on any retirement pensions and take huge paycuts. AA and CAL are already stating that they are losing millions and they will be next to go, and probally quick to reach the new deadline on Chtr 11 rules. everyone will be in the same situation some say DAL was better off than AA and vice versa, the only thing that is true is that every pilot is going to be affected sooner or later in an very bad way at every airline. if USair UAL DAL and NWA have lost there pensions, then AA and CAL will have to follow.

I tend to disagree, and not only as an employee. CAL has strengthened it's cash position from 1.6B to 2.1B as of the end of the 2nd qtr. We are currently paying approx $69.00 for a barrel of jet-a, which is back down to levels before Katrina. While this is still above projections, leading to BK it is not. In addition CAL has filed with the SEC a shelf offering for numerous securites valued up to $1B. As normal retirements reach a peak in 2007 and with early retirements increasing, CAL's empolyee costs are being reduced monthly. The rate of new hires has increased to 16 a week with projections for this pilot growth until Mar '06. 7 new INTL destinations are planned in the near future; IAH-EZE, EWR-MOW, EWR-ATH, EWR-PSE, JFK-AUA, EWR-CPH, EWR-PRG, EWR-WAW, EWR-SHA, EWR-LOS have all been discussed/rumored recently. We now have 6 and 7 year captains on the 737 and that number is being lowered. Pension costs are not increasing as our "A" fund was frozen with contract '02.

I am not denying the fact that BK is still a possibility for any carrier, but I would tend to follow the data that puts CAL in decent shape until 4th qtr '06/1st qtr '07.

 

[Gofish]

Anyone know what the PBGC tab is up to now? AA and CAL CH 11 will double that.

 

[nitrogen]

LOL YEAH TRY MORE LIKE $ 4.3 BILLION IN CASH AND PENSIONS FUNDED AT MORE THAN 80%. tHE HIGHEST BY FAR OF ANY IN THE INDUSTRY. WISH ALL YOU WANT. AA AINT GOING ANYWHERE. DUMMMIES.

 

[Diesel-9]

The way the Allied Pilot Association caved in and lowered the bar on the last contract, AMR has some time left.