Amr 2003 Annual Report

[twuer]

AA was not near bankruptcy simply because it owes billions of dollars and is on the hook for billions of dollars of aircraft orders; AA nearly filed for bankruptcy last year because at March 31, the unrestricted cash balance was just above $1 billion. AA's loan covenants provided that it would be in default if that cash balance fell below $1 billion. That would trigger defaults in most all of AA's debt - which might have been cured with a bankruptcy filing, and might not have been.

As to the RJs on order? They were ordered years ago, and your numbers appear larger than the actual number of orders:



http://www.amrcorp.com/investor/amr10K02.pdf (page 35 of 10-K, page 37 of PDF)

Since the RJ manufacturers have agreed to finance most of the RJ purchases, their purchase does not require that AA pay cash. In fact, the only lenders willing to lend to AA last year were the airplane makers.

As to the shuttle bid? As I predicted over a year ago, the concessions allowed AA to borrow more money; AA borrowed over $2 billion last year. The concessions have helped AA turn cash flow positive and allowed AA some breathing room. Are you against the bid for USAir's gates and slots?

Are you against new airplane deliveries? Prefer to shrink your way to profitability? Not too many successful examples of that ever happening.

FWAAA,

Dave just doesn't want to admit that the concessions that all three unions took was the right thing to do and that it is working!! That would mean that he would have to say that he was wrong!! That just ain't gonna happen!!

 

[Buck]

FWAAA,

Dave just doesn't want to admit that the concessions that all three unions took was the right thing to do and that it is working!! That would mean that he would have to say that he was wrong!! That just ain't gonna happen!!

And I cannot believe you are a union man to even begin to consent to these concessions, but you are most likely one of those who voted for the SRP classification or the two tier pay scale.

 

[Bob Owens]

Bob you have just explained why AA is as it is.

NO ONE tells you to turn off the lights, shut down the APU, (did you need it anyway or was it a convenience becasue of the weather?),and so forth, SO YOU DON'T DO IT.

You are making assumptions little boy. Dont say what I do or dont do because you dont know.

You my friend are part of the problem and the union you belong to won't make a difference. The union brothers are not supposed to tell you what to do, and management is either inept, or not looking over your shoulder giving you detailed intructions. And if your boss does look over your shoulder, you get upset because "he does not trust me or is bird dogging ".

More assumptions. I have no problem if the Boss wants to watch. I treat them the way I expect to be treated.

Like your complaint regarding the MELs cleared at international stations: it is easier and safer just to placard, the other fellow said that most of the items are small stuff that any meachanic should and can clear. Experience should tell that if the item gets cleared fine, if not no harm done and the overnight will then get it anyway.

And how would you know? The fact is that its the companys policy to placard in order to avoid a delay. Obviously things do get fixed but if time is short, sometimes even easy things are placarded especially if there are multiple items of higher priority that needed to be accomplished first.

Stick to bragging about how the TWU is structured like a corporation.