AMR on ICE, shaken not stirred

[The Goose]

And, when that gets pointed out to the average airline executive, they respond with "No, No. That can't be it. They are making money because..." (pick all that apply)

A. Their fuel hedges.
B. The cheap gate rentals at (Love Field, Midway, etc) as opposed to DFW, ORD, etc.
C. Average consumer not interested in value, just a cheap ticket.
D. Their f/as clean the plane.
E. They don't serve meals.
F. They don't have International service.
G. All of the above.

That's what happens when a bean-counter runs a business - no true sense of reality; only numbers.

 

[LGA Fleet Service]

From Jetnews:

The company issued the following response to the FL Group statement. "We have received the letter and value input from our shareholders. Our Board and senior management regularly give careful consideration to the best use of our strategic assets and the impact that those decisions might have in the long run for our shareholders. We generally don't comment publicly on the actions of or our communications with shareholders or what we may or may not do in the future."

Translated into the English, I think they are telling FL group to go jump in the lake.

Well, the Swedish Chef seems to have other ideas:

Smarason told the AP he had discussed the issue with Arpey and other top AMR officials as recently as three weeks ago and found them to be "open to the idea" of selling AAdvantage, "but they need to have a much greater sense of urgency."

"I'm not going to give a deadline, but I want them to respond. Otherwise we'll have to turn up the heat," he said, declining to explain how he might do that.


AMR Shareholder Pushes for Change


Apparently they've increased their stake in the company to 9.14%.

 

[jimntx]

Well, the Swedish Chef seems to have other ideas:

Smarason told the AP he had discussed the issue with Arpey and other top AMR officials as recently as three weeks ago and found them to be "open to the idea" of selling AAdvantage, "but they need to have a much greater sense of urgency."

I'm open to the idea of selling my car and riding DART and TRE to DFW from Oak Cliff. Doesn't mean I'm going to do it.

Beside that, after making their letter to the BOD public, what is he going to say? "They told me that they would sell AAdvantage when hell freezes over and dared me to start a proxy fight."

And, in my quote of Arpey's statement, he said that they were always open to suggestions from the stockholders. Remember every time there is a stockholder proposal to quit doing business with certain companies for one reason or another--environment, support of Israel, opposition to Israel, whatever. They were always open to the proposal. They even put it to a stockholder vote. And, strongly urged the stockholders to vote against the proposal.

"Open to" and "supportive of" are not synonyms.