WeAAsles
Veteran
- Oct 20, 2007
- 23,543
- 5,263
19th October, 2011Bob Owens said:"Your side" being those who somehow buy into the idea that the value of our labor is dependent upon the profits that our management is able to make with that labor. AA does not get a discount on landing fees because they don't make as much as UPS, why should they expect a discount on our labor?
Airlinefinancials.com Bob Herbst is one saying bankruptcy is inevitable, predicting it within the next two or three quarters, despite the cash on hand. Analysts are also suggesting such a move would help the entire industry since it could clear the way for more consolidation. Of course, US Airways was mentioned as the usual suspect especially since American’s market cap is now so low. But it would take a court-supervised reorganisation to make that happen, said Herbst.
"A Seeking Alpha analysis pointed out the mountain of debt and pension obligations the carrier must surmount, adding it does not have the cash flow to do so."
http://centreforaviation.com/analysis/expectations-too-high-on-american-airlines-pilot-deal-as-bankruptcy-concerns-continue-60827