Bankruptcy Q Players

[mrholty]

I doubt it you could live on their monthly salary for a year. What do you think it is?

AMR pilots hourly pay is basically in line with their other competitors (DAL, United/Continetal) and all pilots hired since the early 90s have been on a "B" scale in regards to contributing to their pension.

A narrowbody FA is probably around $110k -$125k and to get there he will have had to either be in the military for 6 years or college with serious debt ($80k for Embry Riddle), and then 2-3 years of sub $20k at a local airstrip to get his hours up to get a ride with a regional at $28k starting for a 50seat jet and a captain in the $45-80k range. Its not like it used to be.
http://blogs.wsj.com/middleseat/2009/06/16/pilot-pay-want-to-know-how-much-your-captain-earns/

What they will see in their new contract will be similar wages, remember that AMRs last offer was a 3% rate increase vs the APA offer of 7%. I would expect to see the 3% but reduced scope clause allowing regionals to fly 70 seaters. AMR was going to spin off Eagle earlier as they were paying above market rates. This BK filing will affect them more. Expect to see new regionals on the ground flying 70 seaters, accelerated shedding of the MD-80 fleet (already planning with the massive Airbus/Boeing order announced this summer) and a net reduction of 50-75 planes. The 757s w/ winglets which they should scrap due to age will probably hang around and replace their 762s flying domestic transcons. Getting rid of the 762 fleet could be worth hundreds of millions annually to the company. I would expect a drawdown of planes to kill whatever is left of St. Louis, further shrinking of Los Angeles, and hits to Chicago. Chicago will be brought back up eventaully with the 70s that will hit but there will be a timing disconnect.