American looking to "right-size" the company and staffing levels for the Fall and 2021

[La Li Lu Le Lo]

As one of the naysayers who summarily dismissed the possibility that it would be American if one of the Big 4 went into bankruptcy, let me be the first to say "Gee, I mighta been wrong.
I'm not familiar with the quoted publication, but judging from name and content it's a stock market analysis magazine.

Here is a quote from the article which 1AA linked in. (You cant really argue with the math.)
"It’s worth noting that the U.S. airline industry didn’t return to overall profitability until 2007 after the Sept. 11, 2001 attacks. Airlines earn single-digit profit margins when things are going right. Running a negative 50% or negative 75% profit margin for a year destroys profits from many good years, and often forces an airline through Chapter 11 reorganization or a total liquidation."

I tried to tell you the situation was serious.

 

[eolesen]

I'm not familiar with the quoted publication, but judging from name and content it's a stock market analysis magazine.

It's a gathering place for sure. Sadly, I'm more inclined to believe research from folks who are actually investing *their* money in AAL and have more of a vested interest in looking after their money than management (who is being given their stock) does. It's a bit problematic that the guy who wrote this had the stock shorted, but it's also hard to argue that there wasn't already enough good reason to short AAL compared to their peers.

 

[V.O. Reason]

As one of the naysayers who summarily dismissed the possibility that it would be American if one of the Big 4 went into bankruptcy, let me be the first to say "Gee, I mighta been wrong.
I'm not familiar with the quoted publication, but judging from name and content it's a stock market analysis magazine.

Here is a quote from the article which 1AA linked in. (You cant really argue with the math.)
"It’s worth noting that the U.S. airline industry didn’t return to overall profitability until 2007 after the Sept. 11, 2001 attacks. Airlines earn single-digit profit margins when things are going right. Running a negative 50% or negative 75% profit margin for a year destroys profits from many good years, and often forces an airline through Chapter 11 reorganization or a total liquidation."

I’m trying to be optimistic as I don’t believe AA will file before 2022.
However that all depends on this spring into the summer if traffic returns.
I think liquidation is most unlikely, chapter 11 certainly is possible.
I’m just so pissed though that as I near the end of my career that we are even having this conversation.
Yes I blame government, I blame China and the WHO for this meltdown in our economies.
Now we have to deal with the damn media and their constant fear stories over the virus.
I just have to go about my business and live one day at a time

 

[CremaDiLimone]

the man shorted the stock...he's looking to make as much as he can on the short. he's hoping aa filed yesterday.

airline analysts at investment banks who have actual clients, have told their clients (and the public) that they doubt aa will file in the near future.

no fliers, bans and quarantines and no vaccine, no therapeutic drugs by next spring?? different story.

 

[La Li Lu Le Lo]

I’m trying to be optimistic as I don’t believe AA will file before 2022.
However that all depends on this spring into the summer if traffic returns.
I think liquidation is most unlikely, chapter 11 certainly is possible.
I’m just so pissed though that as I near the end of my career that we are even having this conversation.
Yes I blame government, I blame China and the WHO for this meltdown in our economies.
Now we have to deal with the damn media and their constant fear stories over the virus.
I just have to go about my business and live one day at a time

As someone who was hospitalized with COVID and is still recovering in my opinion we have taken this shutdown far too far.

After they treated me with Remdesivir and convalescent plasma I felt better within 5 to 6 hours. However they did NOTHING (besides put me on oxygen) to treat me for about 30 hours before that. Granted it took several hours for the COVID test results to get back but they could have done SOMETHING to relieve symptoms.

I wonder how many people have died waiting for those test results........

 

[CremaDiLimone]

well, they came out with apprx. numbers..

2,225 fsc and 800 M&R.

like these numbers and other laid-off staff will save the company(ies) and aa and other airlines will tread water in the 4th quarter?

the company is hoping for a clean extension of the current act. we'll see.

 

[1986Mekanic]

So... now the company will announce geographical locations of the layoff with numbers?

 

[richardhead]

Hearing closing maintenance in FLL and SJU.

 

[Insp4]

Sorry to convey this!
American Airlines to Cut 19,000 Jobs by Oct. 1 When Federal Stimulus Ends
https://www.wsj.com/articles/american-airlines-to-cut-19-000-jobs-11598367869?mod=hp_lead_pos2&fbclid=IwAR0ZvvpTKCIG5vOuHV5wAfatxjWxhkS0qcjRJvukKvGwoQFL5dCPCUfDUjw

 

[eolesen]

I'd say the likelihood that people will be cut is higher with every passing day.

The House appears pre-occupied with the postal service, not unemployment, and the Senate is officially on recess until September 7th. The actual budget for 2021 is due on September 30th, and I doubt Pelosi and Schumer would push for a shutdown a month away from voting. If history is any indicator, both parties will punt the budget to next March with a continuing resolution.

https://www.rollcall.com/2020/08/25/congress-faces-tough-call-next-month-on-stopgap-funding-length/

Whether or not they actually work on COVID relief that helps the airlines seems to be low on the list.

 

[AMFAinMIAMI]

So... now the company will announce geographical locations of the layoff with numbers?

With the new layoff and bump we NO LONGER do it the TWU way. It will be done per our contract that you can pick anywhere there is a Jr. guy to you and bump him/her. The old way of the TWU telling you what stations you can select is OVER.

 

[swamt]

With the new layoff and bump we NO LONGER do it the TWU way. It will be done per our contract that you can pick anywhere there is a Jr. guy to you and bump him/her. The old way of the TWU telling you what stations you can select is OVER.

That's the way it should be, you go wherever your seniority takes you and let the bumping and trickle downs go as needed.

 

[swamt]

WoW!
These numbers are staggering. Wasn't expecting this many. I was thinking more like 15-20K after the voluntary ones were done. But now AA is saying after 21,000 took retirements and leaves they still need 19,000 more? That's 40K employees. What ever happened to the 20-30K AA originally said??
Man, with all these big numbers flying out, I hope that Congress will get active. But of course we all know the dems want the economy to crash even harder just so they can try and pin the blame on Trump for the upcoming election. For them to use other peoples lives as a tool for their agenda speaks volumes and they all need to be removed.
Unions need to get a little louder like the companies have started.

https://r.search.yahoo.com/_ylt=Awr...674.html/RK=2/RS=90haE4Zl0oByeztNV9GJKUX5YUQ-

 

[Rogallo]

WoW!
These numbers are staggering. Wasn't expecting this many. I was thinking more like 15-20K after the voluntary ones were done. But now AA is saying after 21,000 took retirements and leaves they still need 19,000 more? That's 40K employees. What ever happened to the 20-30K AA originally said??

"Based on current demand levels, we at American now plan to fly less than 50% of our airline in the fourth quarter, with long-haul international particularly reduced to only 25% of 2019 levels."

$hit's worse than they thought I guess!

 

[jimntx]

I can't find it now, but the company made a formal disclosure in the paper that there would be 19,000 (involuntary) additional furloughs. EEE YIKES!!! And flying only a fourth of the international schedule? That's tiptoeing along the edges of bankruptcy. How can they stay alive with so little income. Cutting flights and reducing schedules are good for cost savings, but do absolutely nothing toward generating income. What business do you know of that could survive any length period with no income?