BUT! Will the stock become VALUELESS and be reissued to start all over again--Take a LOOK at KMART--That is a PERFECT example. Too big to fail????------ Re organize w/ NEW issue stock! THAT is the MILLION DOLLAR question. ( or should I say BILLION) This is our risk--we do not know-anything can happen. The courts will decide. We do NOT know what they are thinking-W/that said, changing their mind is a possibility too. IMO AMR will not dissolve-( like Panam). REISSUE of stock is realistic possibility. Not what I want--but very possible!!!!!!!
I lived through such one of those big name Brand demise, Eastern Air Lines. A definite Union busting move that felt after 80n years of buisness, they felt it wasn't too big to disapear. But that was at the beginning of merger mania.
Whats left? AA UsAir Jet Blue South West Air trans Alaskan Air??? Playing field is getting thin. Only two make sence.
It's amazing how the uninformed can and will pull things from the air and turn them into fact.
While this is true, it does not mean that a company is not too big to fail.
Anyone can talk about facts and yet they dont get listened too or read. Just because a company is "too large to fail" does not mean they should not be allowed to fail. GM is/was the perfect example.
This is amusing as most on here are trying to pretend they are something they are not.
The so called "too big to fail" group.
I fully understand your point of view be it flawed or not.
Ohh someone trying to educate others on how to do things. So kind of you.
What is amusing here are these so called strategics that management is trying with these unions. Calling out bankruptcy because they dont want to give into a demand or finalize a 5 year argument over contracts. It is not the Union demands or the Union that is killing AA.
I do recall that AA unionized members took a two billion dollar pay cut in 03 then the 24 VP's at AA; the CFO, CEO, along with countless high level managers got huge pay and cash bonuses whilst the company suffered financially.
But again I digress....
yes they would have. Pilot costs are 6% of expenditures. Compare that across the industry.
Pilot wage/salary % of Operating Revenue Southwest -- 10% Alaska -- 8% Jetblue -- 7% AirTran -- 7% Delta. -- 7% United/Continental -- 6% US Air -- 6% AA -- 6%
1. How much did AMR agree to pay JAL to stay in the OneWorld Alliance? 2. How much revenue from trans Atlantic operations goes to the Joint Business agreement with BA and Iberia? 3. How is the Corner post strategy, which focuses most of AA flights out of four cities, different from the hub system of the 90s? The Avondale group does an analysis of a few of AMR's routes which show that, for example, one can fly from LA to London for $1000 (as an arbitrary figure), or fly from LA to ORD to LHR for $800. This in effect pays the passenger $200 to connect, and removes a $600 dollar seat from the LA to ORD domestic leg. The outcome is that AA is shuttling passengers all over the system so they can enjoy a reduced fare. One should know from past experience that extraneous connections require doubling the effort to sell a reduced fare ticket. The exigencies multiply with weather, delays, lost bags, limited excess capacity to accommodate the misconnects and accommodations which result on the last flights of the day.
4. AMR management has vowed for years to reduce capacity to drive prices up. However, the Cornerpost plan actually increases capacity in some of the most competitive markets on the planet while removing service from traditionally revenue rich markets (like Boston, San Juan and San Francisco).
Did you know that AA does not break down expenses from Eagle?
However all the data points to the fact that AMERICAN EAGLE HAS DRIVEN AMR TO FILE CH11.
You know...the little jets that haven't made a penny ever..ever.
ALSO who used 2 billion PER YEAR in concessions from 2003 to flood the market with more Eagle Jets?????....wait for it....
The same idiots who fleeced the company for half a billion dollars in executive bonuses during that period...
Not the Union.
It is the Unions fault isn't it?! Sheesh
Thank god I never went to college and can only hope you're not a teaching economics/finance or anything of the like.
First and foremost the union had little to do with the issues at Eastern. While it was a Union Busting move it was not the reason for the BK. Does the name Frank Lorenzo mean anything. It should he raped Eastern by transferring it's assets to Continental (which he also owned) illegally. Then he raided all the pension plans. I do recall that he was found guilty and forced during Continental's bankruptcy to make amends.
But alas I digress.
BTW: I hate unions always have and always will. BUT what I hate more is how people care to place blame on something without fully understanding what is going on.