AA files for Bankruptcy

roundymac

AA and American Eagle have filed for bankruptcy protection in a statment issued today. The move is to help it reduce it's debts and cost's. It's the last of the "major's2 to have sought this help.
By using chapter 11 it will still be able to continue operating while restructering it's operations.

Delancey

Lest we forget Chapter 11 also allows them to tear up all contracts with Pilots , Cabin Crew and Machinists ( as they call their engineers ) . Probably start paying the Eagle pilots even less than the McDonalds salaries they currently earn.

David086

Tis a dark day for Aviation.

lord lucan

Only a matter of time before this happened. In the end,post-CH11,AA will be stronger for it but there'll be a lot of pain for their frontline staff.

donvito99

Wow. I guess it was coming, but they do have a formidable legacy and presence in the US.

Some ads, from a long time ago now, a different era...

https://www.youtube.com/watch?v=v0qXCCmqffc

https://www.youtube.com/watch?v=qFpTTQlp9jA

https://www.youtube.com/watch?v=9BtQsWamOhQ

seanmacc

I have to say that I detested flying with them, their fleet is so old and their advantage programme gives you SFA. I used to fly with them from DUB to PDX or SEA regularly and I only stuck with them because they were cheap and codeshared with Aerlingus. Most people I know in the States who fly a good bit avoid them like the plague also, a mate of mine would rather go South West.

How will this fare on the big Boeing, Airbus contract they signed this year?

cson

They've a new Kevin Spacey ad doing the rounds on TV at the minute.

https://www.youtube.com/watch?v=VujCWb_U1zI

Absolutely horrible airline to fly with.

Terrontress

I think they have one of the greatest liveries of any airlines.

Delancey

CBS News had an item on the AA Chapter 11 story - apparently AA have cash reserves of 4 Billion so the requirement for new planes exists and it would seem the purchases will go ahead.
What was clear is that the primary reason for going Chapter 11 is to break employee contracts and wring significant concessions from the unions , negotiations have been ongoing for 5 years and have gone nowhere.

A Pilot union spokesman said wage cuts and pension changes was inevitable - pensions are something that seem to be targetted a lot lately.

As an aside - there was also an item on the same news that a firm of Wall Street analysts have concluded that since 1951 the US Airline Industry has lost 31 Billion dollars , I realise the phrase that there are lies , damned lies and statistics springs to mind and I have no idea of the methodology used but it seems that overall losses have far outweighted profits since 1951 - food for thought.

Fishtits

David086 wrote: »

Tis a dark day for Aviation.

Not really, if you look at the figures they were heading in this direction for several years, hence no great market suprise.

As to what price advantage they now have and if its fair... :rolleyes:

Turbulent Bill

Delancey wrote: »

As an aside - there was also an item on the same news that a firm of Wall Street analysts have concluded that since 1951 the US Airline Industry has lost 31 Billion dollars , I realise the phrase that there are lies , damned lies and statistics springs to mind and I have no idea of the methodology used but it seems that overall losses have far outweighted profits since 1951 - food for thought.

That sounds like a meaningless figure, as inflation probably plays the biggest part. I've no idea what the actual figures are, but it's possible that the industry was basically profitable from 1951 until 9/11, then lost 3Bn a year until now, or something similar. Recent losses would dwarf profits made in the 50's just due to inflation.

troposphere

Looks like the AA unions are backing a US Airways takeover

Bloomberg News

American Airlines’ three largest unions have agreed to support a possible takeover offer from US Airways Group Inc. (LCC) (LCC) rather than remain independent, three people familiar with the matter said.

The groups plan to say that they believe they can reach better terms with US Airways than what they expect if American parent AMR Corp. (AAMRQ) (AAMRQ) exits bankruptcy by itself, according to the people, who asked not to be identified because the talks are private.

The labor consensus is taking shape as Fort Worth, Texas- based American prepares to ask a federal bankruptcy court on April 23 for permission to void existing union contracts and impose new terms in its quest to cut 13,000 union jobs. A ruling on the request may not occur until early June.

Continued

Tenger

troposphere wrote: »

Looks like the AA unions are backing a US Airways takeover

A strange move but US are eying up an opportunity, now they have to offer a fig leaf to the AA Board, AA mgmt and the US Dept of Transport (or whoever looks after this stuff)