Game of chicken at CAL has begun

[densoo]

a la AMR and DAL. "We will go bankrupt if you don't concede."

http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B20D37437%2DDB5D%2D4A7A%2DAD2B%2D383438C0E9FC%7D

"Failure to achieve $500 million in annual wage and benefit cost reductions by Feb. 28 could ultimately result in the company having inadequate liquidity to meet its obligations," Houston-based Continental (CAL: news, chart, profile) said in a Securities and Exchange Commission filing.
Continental's shares tumbled 72 cents, or 6.4 percent, to $10.49 in midday trading, after earlier sinking as low as $10.35.

The airline also warned its recent order to buy 10 of Boeing's new 7E7 "Dreamliner" planes is at risk if it cannot achieve the savings."

 

[Heavy Set]

This also could be a way of lowering the stock price for a possible merger. Regardless, I see them capitulating as well unfortunately.

 

[English]

a la AMR and DAL. "We will go bankrupt if you don't concede."


http://www.marketwatch.com/news/yho...o&guid={20D37437-DB5D-4A7A-AD2B-383438C0E9FC}

They'll go bankrupt anyway. This is from page 1 of the playbook that all airline management received on graduation day.

 

[G4G5]

http://www.newratings.com/new2/beta/article_601421.html

No deal with the unions no 7e7's.

He has some pair ordering 1.3 billion in aircraft and a week later asking for concesions

 

[densoo]

The down payment was 100% refundable. It was a stunt for the public, slash, manipulative tactic for the pilots. They can back out of the deal anytime, except now they can blame it on the pilots. Meanwhile, they can use it against the pilots, as is clear from this press release. Pretty obvious that, within the span of two weeks, two press releases go from "yeah, we'll get 7E7s when there is a pay cut" to "woe is me, no 7E7s, losing liquidity due to the pilots." Classic carrot and stick.