AA's London townhouse going, going, gone?

[WorldTraveler]

LONDON (Reuters) - Buried deep in American Airlines' Chapter 11 bankruptcy filing is a striking asset -- a town house in one of London's most expensive residential streets that property experts say could be worth up to $30 million.
http://finance.yahoo.com/news/Exclusive-American-Airlines-rb-38862952.html?x=0

Will AA be forced to give up its posh London accomodations for execs in BK?

 

[DallasConehead]

Yea, I saw that residence buried in the BK filing. Glad to see it's raising other eyebrows as well.

 

[Hopeful]

LONDON (Reuters) - Buried deep in American Airlines' Chapter 11 bankruptcy filing is a striking asset -- a town house in one of London's most expensive residential streets that property experts say could be worth up to $30 million.
http://finance.yahoo.com/news/Exclusive-American-Airlines-rb-38862952.html?x=0

Will AA be forced to give up its posh London accomodations for execs in BK?

Guess they needed it when they were "sharing the pain" with employees!

 

[Buck]

Does anyone know where the TWU officials stay when they are in London?

 

[Birdman]

Does anyone know where the TWU officials stay when they are in London?

With the queen mum?

 

[Duke787]

The culture of AA management needs to change before they destroy even further this once great airline.

 

[TWU informer]

They had to provide the London House so that they would not lose their great talent to the competition.

 

[Deleted member 14439]

This hits me about like the Carty shennanigans. Everyone should be slack-jawed at this revelation. Disgusting!

 

[AAviator]

The culture of AA management needs to change before they destroy even further this once great airline.

Very true.

 

[FWAAA]

Off with their heads!

 

[Frank Szabo]

Off with their heads!

While you might think it's funny FW, it another slap to the people who were asked to give to prevent a supposed Chapter 11 filing in 2003. Lying to the people asked to sacrifice for no reason other than "we can" is not a good way to win friends and influence people.

Re: "Off with their heads" - many, at this point, would be rather pleased to do so.

 

[FWAAA]

It's freakin hilarious, Frank. Of all of AA's costly blunders, this is the one that has appreciated since it was purchased in 1992, unlike 75 worthless Fokkers and a couple dozen worthless MD-11s, among many other now-worthless AA management mistakes. And of course execs can't possibly have to stay in a hotel with the commoners - they have to have a luxury residence at their disposal.

Purchased in 1992 for 2.85 million pounds (about $6 million at the time). The great god Crandall was in charge back then, no?

http://www.bloomberg.com/news/2011-12-14/amr-s-luxury-london-townhouse-may-go-in-airline-bankruptcy-sale.html?cmpid=yhoo

If it's now worth $20 million or perhaps $30 million, that was an outstanding investment compared to most of AA's other costly mistakes.

 

[Frank Szabo]

It's freakin hilarious, Frank. Of all of AA's costly blunders, this is the one that has appreciated since it was purchased in 1992, unlike 75 worthless Fokkers and a couple dozen worthless MD-11s, among many other now-worthless AA management mistakes. And of course execs can't possibly have to stay in a hotel with the commoners - they have to have a luxury residence at their disposal.

Purchased in 1992 for 2.85 million pounds (about $6 million at the time). The great god Crandall was in charge back then, no?

http://www.bloomberg.com/news/2011-12-14/amr-s-luxury-london-townhouse-may-go-in-airline-bankruptcy-sale.html?cmpid=yhoo

If it's now worth $20 million or perhaps $30 million, that was an outstanding investment compared to most of AA's other costly mistakes.

Looking at it that way, yes - it is pretty damned funny. All they made money on was an item they didn't dare tell the rabble about. Real Estate, regardless of locale, does tend to appreciate (except, perhaps, downtown Kabul). Market pressures and inflation drive it. Cars, aircraft, or anything else on the machinery side tend to depreciate.

No matter - many at American would be rather elated to spend a few minutes in a locked room with these liars that, with the help of their wholly owned subsidiary (the TWU), lied through their teeth and talked most into granting concessions in 2003.

 

[frontline]

This hits me about like the Carty shennanigans. Everyone should be slack-jawed at this revelation. Disgusting!

Slack-jawed? I am slack-jawed that they bought it for a few million and will sell it for 30! We should shake their hands on this one!

 

[WorldTraveler]

It's freakin hilarious, Frank. Of all of AA's costly blunders, this is the one that has appreciated since it was purchased in 1992, unlike 75 worthless Fokkers and a couple dozen worthless MD-11s, among many other now-worthless AA management mistakes. And of course execs can't possibly have to stay in a hotel with the commoners - they have to have a luxury residence at their disposal.

Purchased in 1992 for 2.85 million pounds (about $6 million at the time). The great god Crandall was in charge back then, no?

http://www.bloomberg.com/news/2011-12-14/amr-s-luxury-london-townhouse-may-go-in-airline-bankruptcy-sale.html?cmpid=yhoo

If it's now worth $20 million or perhaps $30 million, that was an outstanding investment compared to most of AA's other costly mistakes.

if AA were in the real estate market, then this would be a great accomplishment... and if their success w/ this "house" benefitted the airline operation, it would be even easier to agree w/ you.
But given that it is an asset on the same books w/ a company that has billions of dollars of pension underfunding and it doesn't benefit the airline operation, then it is legitimate to ask why the asset was not sold earlier and the cash used to bolster AMR's cash reserves - which could have avoided borrowing a couple billion more.
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And the core question remains "is it really necessary to put even a high level executive in an expensive home... could something a bit more humble not have accomplished the same thing?"
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sorry but this is one of those things that come up in BK that the company legitimately has to face the critics about, no matter how good of an investment it might have been.