Mybe that is why WN did not bid to high for the LGA and DCA slots and lost. Bigger prize to win on the horizon?
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Mybe that is why WN did not bid to high for the LGA and DCA slots and lost. Bigger prize to win on the horizon?
US Oringinal
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- Jun 24, 2008
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I think you are underestimating Parker's financial resources and his desire to play with the big boys. CNBC as recently as 3 months ago callss him the smartest CEO in the airline industry....I disagree. But he does know how to arrange financing and has a long history with BK courts and judges.....
Well company news info states that AA has enough cash to finance own its own BK. No need for outside cash.
My thoughts exactly!!
WorldTraveler
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- Dec 5, 2003
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I don't doubt Parker's connections or abilities... but the simple fact is that other carriers and other connections have not only as good as and possibly better finances but also better airlines or companies standing behind them. Parker is only as good as the company he leads... you could list a half dozen carriers that have better financials than US, all of which could very well be interested in all or part of AA.
Also, Parker has been outsmarted in some key strategic initiatives so I wouldn't at all say that he has done the best job strategically... I would rank him fairly high in terms of his strategic abilities WITHIN THE AIRLINE INDUSTRY, but let's face it that there are other industries that have alot better execs on average than the airline industry.
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and yes, WN could well acquire a whole lot more slots than the piddly spin offs from the DL-US slot deal...
nycbusdriver
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I'm surprised that AA declared with so much cash, but I am happy that they did. It may give them the ability to escape the clutches of the Tempe brain trust.
Now, if only the AA management and employees can be successful in convincing the referee and the creditors (a la Delta) that a merger with US Airways would not be in their best interest. I hope you can.
Be warned: RUN as far away, as fast as you can, from any proposals from Tempe.
I sincerely wish you all at AA the best of luck in this uncertain process, and that you emerge independent of influence by "less than desirable" outside sources.
Now, if only the AA management and employees can be successful in convincing the referee and the creditors (a la Delta) that a merger with US Airways would not be in their best interest. I hope you can.
Be warned: RUN as far away, as fast as you can, from any proposals from Tempe.
I sincerely wish you all at AA the best of luck in this uncertain process, and that you emerge independent of influence by "less than desirable" outside sources.
767jetz
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- Aug 20, 2002
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E - none of the above. But that won't stop Doug from trying. JMO
I predict AA will emerge much like UA did... Intact, but smaller with no pensions. They have too many assets and too wide a reach for investment to not be forthcoming. Unfortunately there will be significant pain for all. Hopefully with this administration the employees will take less of a hit and the creditors more. (Like GM/Chrysler and the auto workers.) I also think they will find sufficient exit financing and avoid selling their soul to private equity investors. It will probably take 1.5 to 2 years due to the new BK laws. (Not the 3 or so that UA took) A merger will only happen if Doug makes a run for it, or if AA decides it is a strategic advantage to absorb a competitor and make the post BK airline world a little smaller. There are many who believe that there should be one more round of consolidation to support a healthy US Airline industry. One thing is certain. AA will shrink and there will be upward pressure on fares due to supply and demand that will help all airlines stay profitable, even AA when its all said and done.
On a side note, this will also change the plans of many former TWA pilots. I have many friends from my TWA days who stuck it out to the bitter end. They have all moved on to other careers or other airlines. Some went corporate. All those still flying said they would only go back to AA if recalled for the pension. Most likely that will be history, or at best frozen.
traderjake
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Desire and ability are not the same thing.
Phoenix
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Real tired
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As others have stated, and having been through this twice, I feel sorry for these folks. It's not going to be pretty. Especially in this economy. In short, you might want to watch expenses and put off those major purchases until the dust settles on this thing, which could be a while.
It will probably work like our BK's did. Give up the pensions and the wages, which will be the first on the chopping block, then it's bonuses for management because they have to keep those people happy or else they will run to other companies and AA will lose the talent. Remember those words?
From a Maintenance standpoint, AA was a big operation and they did most of their work in house from what I understand. They also did a lot of contract work for other companies. I sure hope they can keep that. But most importantly, I hope they can keep their scope. But with the rubber stamp, management friendly bankruptcy judges, anything is possible.
Good luck to all of them, merger or not.
It will probably work like our BK's did. Give up the pensions and the wages, which will be the first on the chopping block, then it's bonuses for management because they have to keep those people happy or else they will run to other companies and AA will lose the talent. Remember those words?
From a Maintenance standpoint, AA was a big operation and they did most of their work in house from what I understand. They also did a lot of contract work for other companies. I sure hope they can keep that. But most importantly, I hope they can keep their scope. But with the rubber stamp, management friendly bankruptcy judges, anything is possible.
Good luck to all of them, merger or not.
http://www.boston.com/Boston/businessupdates/2011/11/american-airlines-bankruptcy-have-little-local-impact/0La5DO5izSg6oYsgXUWpsN/index.html
Herbst hit the nail on the head ..... the government has nearly destroyed this profession as a career over the past 15-20 years. And they wonder why there is no middle class left in America?
Art at ISP
Veteran
I don't find it strange at all...in fact it would be expected. I personally think that Arpey was the one obstacle to a CH 11 filing, and he resisted it as long as he could. When he got overruled or outvoted on the BOD to make this step, I think it was understood he would "retire".......so to that extent this was orchestrated.
While they did issue a separate press release, the change in command is minimized and barely mentioned in the BK announcement.
With $4.1 B in available cash, short term, AA will be okay, but the real losers here will be the employees and the shareholders.....I have one friend who has been with AA since '68 or '69--hope she had the good sense to retire before they can mess with the pensions.....
While nothing would surprise me, Parker's ego is too big not to make a play for some part of AA -- I don't think he'll get the whole company--but if he did, that would be just one bigger airline for Scooter and him to ruin....
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