Would employees be interested in buying the airline

[texflyer]

Thanks Hopeful for answering my questions honestly. as regards the last point, I was not referring to the executives, though I imagine they are stressed out too since they have mortages too.

I am sure AA employs many single parents who are the bread winner in their family. My compassion goes out to them, cannot imagine how stressful this must be for them.

 

[FWAAA]

Nothing to do with trust but reality...I don't want 80000 owners...i want a good management team who looks beyind blaming labor for all its ills!

If the employees bought the company, the employee-stockholders could replace the board of directors and hire all new management. I presume that the employee-stockholders would make it clear to the new management that they would not tolerate any blame placed on labor.

No! Mergers are nothing but headaches to employees of both carriers. It may help the airlines as it eliminates a carrier, but nothing but discord will exist among all employees!

Really? I get the impression that everything at DL is rainbows and unicorns, except for the anger of the PMNW employees who are losing their union representation.

In this day and age, I don't know any worker who's spouse does NOT work.....You might be referring to the executive class whose spouses play tennis in the morning and head to the gym with their personal trainers in the afternoon. Then go home and prepare the evenings' activities with the other members of exececutive spouses club.

You may be right, but I assume that there's more than a few stay-at-home moms whose husbands make nearly $70k at TULE (before any overtime). That's living large in a low-cost city like Tulsa, Oklahoma. Probably fewer of those families among the mechanics in the high-cost cities. And divorce is common these days, so there are probably quite a few divorced mechanics in Tulsa and the high-cost line cities. If a TULE mechanic's spouse works at a job requiring education and pays well (not a min wage time-filler), that couple could easily make $120k to $150k (depending on his overtime and her income). That level of income would place that hypothetical couple in the top 15% of the USA in income. Not too shabby.

It may just be the circles in which I hang out, but most of the working women I know are the ones who worked hard in school to attain educations so they could get careers they enjoy and wouldn't have to be just stay-at-home moms.

 

[jimntx]

Substantially all aircraft and all valuable routes/slots currently serve as collateral to secure various debt, and that debt likely exceeds the market value of AA's assets. AA has a negative net worth.

Maybe so, but unless the debtor is another airline, they will have no use for the a/c, routes, and slots. The debtor will probably come out pretty good in the sale of these things--particularly, the LHR slots and the deals on the new airplanes.

 

[WorldTraveler]

BoeingBoy,
remember that AMR is deeply in debt... you can't just buy the assets and leave the company with the debt... well, it is possible but highly unlikely it could fly.

Maybe so, but unless the debtor is another airline, they will have no use for the a/c, routes, and slots. The debtor will probably come out pretty good in the sale of these things--particularly, the LHR slots and the deals on the new airplanes.

The reason why airlines usually buy other airlines is because creditors have a better chance of recovery if the assets can be put to use; some of AA's assets can be carted off to other countries and used but most assets have value only in the US (route authorities, terminal leases).
Also, cash is hardly the only way to make a merger work.... some of the largest mergers in the airline industry have been all or largely stock based which means the creditors or board believe there is a very good chance that the acquiring company will be able to profitably use the assets.

 

[FWAAA]

Maybe so, but unless the debtor is another airline, they will have no use for the a/c, routes, and slots. The debtor will probably come out pretty good in the sale of these things--particularly, the LHR slots and the deals on the new airplanes.

You mean "unless the creditor is another airline"? AA is the debtor. Lenders are creditors. Borrowers are debtors.

 

[jimntx]

You mean "unless the creditor is another airline"? AA is the debtor. Lenders are creditors. Borrowers are debtors.

Oops! Just remember, I'm a flight attendant. I'm paid to be cute, not smart. And, sometimes I type faster than I think.

 

[Mr Red]

With AA stock hovering at incredible lows, I believe the company can be bought for less than a billion dollars. Would the unions.........errr......the employees be interested in buying the company? Control your own destiny.

Keeping in mind that UAL employees tried the same a decade ago,and we know how that turned out.

I've said many times that I'd be thrilled to sell the airline to the employees and our guys said no, we'll take all the money, anyway.

— Robert L. Crandall, 1997

 

[ULM148]

I've said many times that I'd be thrilled to sell the airline to the employees and our guys said no, we'll take all the money, anyway.

— Robert L. Crandall, 1997

Mr Red, 14 years has passed since Robert Crandall spoke those words. I remember when and why he delivered those words, and since, the world and the Airline industry has changed like it or not. In AA's current situation there are viable ways for an "employee owned" scenario to not only work, but to return an airline to sustainable profitability for all parties involved. What advise Bob gave then may not be the same advise he would share currently given AA's specific situation today. Things change not only for an airline, but also for it's people, and those who were responsible for successful leadership. I believe the employee's want a successful, viable company for many years to come, it just can't be with those currently holding the reigns. I believe the employee's could come together if they so choose, in a successful purchase of their company.

Robert Crandall is currently 76 years old and still very active. Some say he's beyond his years and incapable of turning around AA's mess. What if there was an employee purchase and he was part of the turnAAround plan. Personally, I think if his name was reattached to AA, the stock would triple at the announcement. Too old? Well, what about Warren Buffet? He is currently 81 years old. How about Bill Marriott who is currently 79 years old. If you'd like an example of a senior CEO from AA's headquarter's in the great state of Texas, how about T Boone Pickens who is currently 83 years old and running strong.

Ask any one of these highly successful leaders if they believe in the same things they did 14 years ago. Heck, Warren Buffet just BEGGED congress for a TAX INCREASE on himself! Think he ever would have thought that at age 67, 14 years later, he would be saying .. I want a TAX INCREASE??? Please tax me more than my secretary!!! Thing's certainly have changed, one should never leave options out.

 

[Barfbag]

Robert Crandall is currently 76 years old and still very active. Some say he's beyond his years and incapable of turning around AA's mess. What if there was an employee purchase and he was part of the turnAAround plan. Personally, I think if his name was reattached to AA, the stock would triple at the announcement. Too old? Well, what about Warren Buffet? He is currently 81 years old. How about Bill Marriott who is currently 79 years old. If you'd like an example of a senior CEO from AA's headquarter's in the great state of Texas, how about T Boone Pickens who is currently 83 years old and running strong. leave options out.

BTW, how old is Carl Icahn ?

 

[damajagua]

How old is Frank Lorenzo?

 

[ULM148]

How old is Frank Lorenzo?

He's 71, and in my opinion, I'm not sure I'd want to touch that one....

 

[ULM148]

BTW, how old is Carl Icahn ?

Carl "Clorox" Icahn is 75 years young

 

[texflyer]

Now the question of an ESOP becomes serious. If not you will be calling Doug Carter your new CEO. Hope for the best for the employees.

 

[eolesen]

Doug Carter?...

There won't be an ESOP. There's no longer any stock to buy, and the creditors have first dibs on any new stock issued, assuming AMR remains publically traded and isn't taken private by someone like TPG.

 

[texflyer]

Just heard on the radio that the unions may.........may take a small ownership stake in the new shares of the company in exchanged for the inevitable pay cuts to come.