AMR Gets Concessions from Suppliers/Creditors/Lessors

[Oliver Stone''s Apprentice]

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On 5/16/2003 7:16:07 AM bigbusdrvr wrote:

I hate to be the bearer of bad news, but....

AA is just 2 billion dollars short of their target 4 bil. in annual savings....

Any idea where this willcome from??

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$2.0B was pulled out last year (depeaking, retiring aircraft, schedule adjustments, other non-labor cost savings).

$1.8B was pulled out with the labor agreements.

$175M was pulled out with the most recent supplier concessions

Total so far is $3.975B and I'm sure there's another $25M that we'll find as a ruboff savings from some of the other changes that have been put in place.



Hopeful, if bankruptcy were the plan all along, why bother negotiating with the suppliers and creditors? We could have just screwed them by filing, which is what UA and US did. Why go thru the motions of negotiating with labor, when we could have simply requested to arbrogate the contracts and get another $500M or more in savings? Why risk more long term damage with employees, suppliers, and creditors?

Bankruptcy has been considered a measure of last resort for AMR. At UAL and US Airways, some believe it was a measure of least resistance.

It might still happen, but the chance of that happening is shrinking on a daily basis.