AMR Fights To Quell Bankruptcy Fears

[NewHampshire Black Bears]

Evidence would suggest that you probably save money that way. Look at what it took to get Tilton away from the oil business to be TOTALLY useless at UAL. He can't even make the shareholders and other big money folks happy. Arpey probably has AMR is the perfect position. If they file bankruptcy and wipe out debt, there's no chance that forgiving debt will result in a future payoff as UAL/DAL/NWA creditors expected.

This bankruptcy talk is as amazing as AMR's spokesperson makes it sound...a few weeks ago these same people said AMR had too much cash and it was a bad thing, now it's not enough. Yes oil has gone up and the economy is going bad but we've been saying that about the airline economy for 6 months at least.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>


NO SWEAT...flyhigh !

Because the(only) 2 BK threads were started by chucky ........and luv2fly(one, possibly 2 Deltoids)...were Financial Peril is a very real threat.

 

[FWAAA]

4) The delivery of 23 737-800's during 2009, while AMR is holding +6B in cash, creates a "knuckle" in the water we can use for cover while events develop around us.

Not quite that much cash. AMR is holding about $4.4 billion of unrestricted cash as of 3/31:

Liquidity: We expect to end the first quarter with a cash and short-term investment balance of approximately $4.8 billion, including approximately $430 million in restricted cash and short-term investments.

http://www.shareholder.com/aa/EdgarDetail....0&SID=08-00

The restricted cash primarily secures workers comp and other obligations.

EETCs? To secure promises in the new CBA? What promises? You're optimistic. My prediction is that AA "promises" raises of 1.5% to 2.0% per year. Doubt anyone is gonna pay the legal bills to arrange EETCs to secure such small dollar "promises." Besides, the lenders that put up the purchase money will demand (and get) the first position. The best you could hope for is a second lien - and as Bow Owens has said, who wants to own depreciating metal in an aviation downturn?

 

[luv2fly]

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>


NO SWEAT...flyhigh !

Because the(only) 2 BK threads were started by chucky ........and luv2fly(one, possibly 2 Deltoids)...were Financial Peril is a very real threat.

All I did was post an article. In case you didn't notice, I didn't write it.
You see Bear, I don't subscribe to the "fear mongoring and my airline is better than yours" philosophy you practice.
Your AA, RA RA crap has grown old, not because you take pride in AA wich is admirable, but because of your prejudices towards others.
"Prejudices are what fools use for reason." Voltaire

 

[Bob Owens]

And please spare me the "need to retain the key talent."

If they had "talent" they wouldnt be in bankruptcy.

 

[The Goose]

True to date, but the changes in the bankruptcy law passed in 2005 also changed the playing field as far as retention bonuses go. Some of the hurdles for a retention bonus include proof that there's a competing offer for the employee; otherwise, it has to conform to standards and limits that can't exceed 10 times the amount paid to other employees. In the cases where "KERP's" (Key Employee Retention Program) have been approved by the court, the standards and targets were such that simply showing up to work wouldn't trigger a payout. You actually had to do something. AA's current stock price scheme wouldn't pass muster from what I've seen.

The new law has already been tested and bonuses denied to a few non-airline bankruptcies.

Haven't paid much attention to other industries but I'm happy to hear the new BK law has been tested and somewhat works.

The part I find scary is the push now to spin off Eaglet (maintenance was also mentioned in an article I read yesterday). Could a spin-off, collecting bonuses (for a job well done), then filing for Chapter 11 protection be part of the plan? It seems to get around the "rentention" (read failure) part of the new law.

Could this be the scenario some analysts are seeing?

 

[TIME FOR CHANGE]

...sad how Wall Street thinks today. As the spokesperson says:
Says Goulet, "We restructured the company the right way: We've paid our debt, funded our pension plans, funded obligation to creditors, our employees are highest paid in the industry, and our equity didn't become worthless. That's what we are paid to do."

You avoid wiping investors out and you do so while keeping relative pace with key competitors (UA specifically) yet you still get beat up.

That is a false statement. According to the AA smoke and mirrors web site CO makes more than we do


http://www.aanegotiations.com/MechanicsWagesACMech.asp

 

[NewHampshire Black Bears]

All I did was post an article. In case you didn't notice, I didn't write it.
You see Bear, I don't subscribe to the "fear mongoring and my airline is better than yours" philosophy you practice.
Your AA, RA RA crap has grown old, not because you take pride in AA wich is admirable, but because of your prejudices towards others.
"Prejudices are what fools use for reason." Voltaire

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
YES, luv2fly..............your right. You did NOT create the thead, which makes me Incorrect !!

 

[North by Northwest]

...sad how Wall Street thinks today. As the spokesperson says:
Says Goulet, "We restructured the company the right way: We've paid our debt, funded our pension plans, funded obligation to creditors, our employees are highest paid in the industry, and our equity didn't become worthless. That's what we are paid to do."

You avoid wiping investors out and you do so while keeping relative pace with key competitors (UA specifically) yet you still get beat up.

Welcome to American capitalism, where you are only respected if you cheat lie and steal (NW,UAL, and the other BK theives). Run a successful business and get put through the grinder. Remember Northwest's hoard of cash and spotless balance sheet before that rape of the LBO in 1989. This government is about allowing well run companies to be destroyed if there are hundreds of millions to be made by the "connected".

 

[eolesen]

Would you prefer Chavezism or Castroism, where succesful companies are simply taken over by the government who then holds onto all the money and does the bare minimum for the citizenry?

Yep, all those people in Cuba and Venezuela are livin' the dream compared to you, sitting at a computer, chatting on the internet Al Gore invented, while in your climate controlled house with at least one car guaranteed to be less than 10 years old...

Yep. Capitalism sure sucks.

 

[Hopeful]

Would you prefer Chavezism or Castroism, where succesful companies are simply taken over by the government who then holds onto all the money and does the bare minimum for the citizenry?

Yep, all those people in Cuba and Venezuela are livin' the dream compared to you, sitting at a computer, chatting on the internet Al Gore invented, while in your climate controlled house with at least one car guaranteed to be less than 10 years old...

Yep. Capitalism sure sucks.

What great examples you give....How about in Europe where there is no Chapter 11...Your company fails, the doors close...No bankruptcy to give creditors cents on the dollar and no judge to give executives their greedy and inflated compensation....
How about a country like Japan, where an executive is looked at with scorn and shame if he or she does what is common practice in this country.


Say what you want about unionism, Eric...At least with unions there is no inequality with pay and compensation regarding sex, religion, race or sexual persuasion.

 

[Boomer]

Would you prefer Chavezism or Castroism, where succesful companies are simply taken over by the government who then holds onto all the money and does the bare minimum for the citizenry?

Yep, all those people in Cuba and Venezuela are livin' the dream compared to you, sitting at a computer, chatting on the internet Al Gore invented, while in your climate controlled house with at least one car guaranteed to be less than 10 years old...

Yep. Capitalism sure sucks.

Capitalism, Wikipedia

Capitalism refers to an economic and social system in which the means of production are predominantly privately owned,[1][2] are operated for profit,[3] and in which investments, distribution, income, production and pricing of goods and services are determined through the operation of a market economy. It is usually considered to involve the right of individuals and corporations to trade, using money, in goods, services (including finance), labor and land.

Capitalism doesn't suck, lately it just hasn't been practiced much. One could argue that it has never been practiced given the operation and structure of the US airline business.

 

[ual777fan]

There are three airlines that have managed to avoid the bankruptcy wringer over the past decade; American, Continental and Southwest. These three airlines are still viewed as the strongest in the industry and have managed to remain competitive despite the advantages that bankruptcy gave their competitors (shedding debt and retirements and pensions and contracts etc.) That's fairly impressive. What's so incredulous is the fact that analysts are still hammering these airlines for not declaring bankruptcy, as if Chapter 11 is a good thing for anyone.

(I'm not sure how much Continental actually counts considering the number that Lorenzo did on that airline through its (two?) bankruptcies...)

 

[L1011Ret]

There are three airlines that have managed to avoid the bankruptcy wringer over the past decade; American, Continental and Southwest. These three airlines are still viewed as the strongest in the industry and have managed to remain competitive despite the advantages that bankruptcy gave their competitors (shedding debt and retirements and pensions and contracts etc.) That's fairly impressive. What's so incredulous is the fact that analysts are still hammering these airlines for not declaring bankruptcy, as if Chapter 11 is a good thing for anyone.

(I'm not sure how much Continental actually counts considering the number that Lorenzo did on that airline through its (two?) bankruptcies...)

Got to agree with you. Despite all the whining here about wages and benefits, the three above named airlines have been quite successful in avoiding major financial distress while maintaining descent wages and benefits for their employees. They should get gold stars for doing so.

 

[777 fixer]

What great examples you give....How about in Europe where there is no Chapter 11...Your company fails, the doors close...No bankruptcy to give creditors cents on the dollar and no judge to give executives their greedy and inflated compensation....
How about a country like Japan, where an executive is looked at with scorn and shame if he or she does what is common practice in this country.


Say what you want about unionism, Eric...At least with unions there is no inequality with pay and compensation regarding sex, religion, race or sexual persuasion.

Regarding Europe do not forget the only thing keeping Alitalia in operation is the Italian government. Or that in its entire history Sabena almost never made a profit and yet still managed to stay in business thanks to the Belgium government.

 

[North by Northwest]

Would you prefer Chavezism or Castroism, where succesful companies are simply taken over by the government who then holds onto all the money and does the bare minimum for the citizenry?

Yep, all those people in Cuba and Venezuela are livin' the dream compared to you, sitting at a computer, chatting on the internet Al Gore invented, while in your climate controlled house with at least one car guaranteed to be less than 10 years old...

Yep. Capitalism sure sucks.

You have sung this same song so many times the cob webs are old. You LOVE to ignore the CAPITALISM of Europe/Japan where they actually have a REAL middle class that doesn't live on credit (money they don't have). Or is it that you can't stand the fact that they wouldn't put up with the kind of unchecked piggish GREED that flows like the stench of an open sewer in corporate America.

Dispute the earnings ratio of European Labor to management vs. the VAST disparities in America. It is sickening when people only believe what they WANT to believe vs reality, then attempt to present the alternative is the Third world.

Well, with 25 MILLION illegal aliens in this country (thank you very much Corporate America Capitalism and the political lackeys they own) we will not be far behind. You then, will get no argument from me.