AA's London townhouse going, going, gone?

[PHL]

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!

We may have never heard about it were it not for the BK filing. Would it have only been reported back in 1992 when purchased? It has to be on a company filing somewhere. But yes, the appreciation plus the savings in hotel expenses that the execs saved on (5 star suites, no doubt) over the years are nice, although I wonder how much it cost to maintain it each month/year.

 

[Mach85ER]

Run the cumalitve UK/London tax bill, maintenance and staffing costs for 20 years, as well as the opportunity costs 2011 dollars and tell me how ###### brilliant keeping this place was.

And I've flown around in airplanes that were duct taped for 11 months because they couldn't afford to buy new fasteners?


Also, provide us with a list of those who stayed in the past, two copies of course, one also for the IRS in D.C. Maybe a couple more for the ex-wives.

 

[Buck]

I am sure that the employees of American Airlines, unlike the real estate purchase have not appreciated.....

Maybe Mr. Crandall can enlighten us as to the particulars of this transaction?

Thank goodness the company filed bankruptcy, it is early yet maybe there will be other items suddenly pop up.

 

[PHL]

Also, provide us with a list of those who stayed in the past, two copies of course, one also for the IRS in D.C. Maybe a couple more for the ex-wives.

Why does the IRS need to know who specifically stayed there? If an employee was there, it can be easily argued it was business travel. Do you tell the IRS when/where you stay when you are at a hotel on company travel? No. They, presumably, reimburse it or pay it outright, so there's nothing for you to report as an employee.

If they don't reimburse you, then you have unreimbursed business expenses to claim on your 1040 and you get the write off. The execs staying at a corporate owned house, apartment, condo, or whatever it may be have no obligation to report it as long as the stay(s) can be proven to be incidental to the business. We all know that's easy to do. AA has significant business operations in London, UK and all of Europe. Just because they owned a house to put their top execs in versus springing for 5 star luxury accommodations at posh hotels really doesn't make a difference, and I doubt anyone in the roaring 90's would have made a stink about it.

 

[flyastrojets]

It is not unusual for a multi-billion dollar corporation to own a home or an apartment in a city where senior managers might spend an awful lot of time doing things like lining up financing, and doing the day to day "politicking" that any business needs to do. I wouldn't be surprised to find out that AA owns a home or apartment in NYC either, but have seen nothing to indicate that they do. Ironically, when AA sells this puppy, they'll actually make a little money for the enterprise. That said, it's easy for me to see how this might appear to the rank and file, and I empathize with the negative sentiment. While I don't personally feel this is the worst thing AA has ever done, I expect this is one appreciating asset that will be sold very soon.

 

[gizmo_sc]

Old Bob Crandall must have had alot of money. He bought the LHR routes from TWA from ICAHN (####) for over 1 billion dollars cash. About the same time he purchased this with his big buildup in LHR. AMR must have had alot of extra cash at the time.

 

[FWAAA]

Old Bob Crandall must have had alot of money. He bought the LHR routes from TWA from ICAHN (####) for over 1 billion dollars cash. About the same time he purchased this with his big buildup in LHR. AMR must have had alot of extra cash at the time.

TWA sold the LHR routes to AA for $445 million in cash.

http://www.nytimes.com/1990/12/17/business/american-airlines-agrees-to-buy-london-us-routes-from-twa.html?pagewanted=all&src=pm

AA then squandered another $6 million on this extravegant residence.

 

[Buck]

TWA sold the LHR routes to AA for $445 million in cash.

http://www.nytimes.com/1990/12/17/business/american-airlines-agrees-to-buy-london-us-routes-from-twa.html?pagewanted=all&src=pm

AA then squandered another $6 million on this extravegant residence.

I am not so sure about squandered, the redsidence could have been used to make some very lucrAAtive transactions.

Maybe Bob Crandall should have been granted Knight Commander (KCVO).

 

[DallasConehead]

It's no surprise to me. The execs get perks that are far beyond a working mans wildest dreams. This one they had to report due to the BK. Whats interesting is no one saw it in the filing? You had to wait for Rueters to report it? Hows about you all go educate yourselves and read everything in the filing before you sit here on this bb and read President Bo's dribble.

 

[Hopeful]

It's no surprise to me. The execs get perks that are far beyond a working mans wildest dreams. This one they had to report due to the BK. Whats interesting is no one saw it in the filing? You had to wait for Rueters to report it? Hows about you all go educate yourselves and read everything in the filing before you sit here on this bb and read President Bo's dribble.

As much as i would just looooovvvveeee to get on this bandwagon, I have to say that since it appears the property was purchased during the "good old profitable " times of AA, before any concessions, I am more ticked off that it was kept secret, just like the SERPS...Why the hush hush? I suppose corporate actions should be kept secret but the airing of labor costs and pension and other benefits can and will be open to the public.

I wish AA had bought a few oil fields way back.

 

[MCI transplant]

<_< ------ Than comes the question? Are there any other properties AA might have that the employees, and the BK court, are unaware of?----- Say in Paris?

 

[chris perry]

I just wonder if they are on the swiss bank list? This Moral high ground is looking a little thin Arpey and company.

 

[FWAAA]

I heard that Carty had a hidden vault filled with riches that makes Al Capone's vault look pedestrian. Someone call Geraldo.

 

[1AA]

<_< ------ Than comes the question? Are there any other properties AA might have that the employees, and the BK court, are unaware of?----- Say in Paris?

One article I read mentioned eight other properties listed under AMR. It did not say where they were located and how much they are worth.

 

[eolesen]

Who ever said this was a secret? Didn't know where it was, but I knew AA had corporate owned housing in LON. There may also still be owned housing in TYO as well. It is a bit unreasonable to expect someone to live in a hotel for 12-36 months, and if you run the cost of leasing out a house or hotel rooms over 19 years, you're probably close to the same costs as owning the house, especially if there are tax benefits for owning the property...