AMR loses $389 million in 2010, excluding special items
- Thread starter FWAAA
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TWU informer
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- Nov 4, 2003
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AA has only had 2 or 3 profitbale quarters since the "Lawyers were on the Bankruptcy Court Steps" in 2003.
Pretty damn amazing when you think about it.
Lawyers are on the steps, we are about to go Bankrupt in 2003, yet AMR can still survive 7 1/2 more years while losing billions and only 2 or 3 profitable quarters in that time frame.
Give those Boys more Bonus Awards and Retention Pay we wouldn't want them to go to work for the competition.
This should actually be the next episode on Ripley's Believe It or Not.
Pretty damn amazing when you think about it.
Lawyers are on the steps, we are about to go Bankrupt in 2003, yet AMR can still survive 7 1/2 more years while losing billions and only 2 or 3 profitable quarters in that time frame.
Give those Boys more Bonus Awards and Retention Pay we wouldn't want them to go to work for the competition.
This should actually be the next episode on Ripley's Believe It or Not.
Hopeful
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- Dec 21, 2002
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Gee, I really hope the executive PUPS aren't affected too badly!
April's right around the corner. My guess is we will all have contracts by the end of february so they can get larger pups in Apr.
jimntx
Veteran
From your lips to God's ears, but I wouldn't bet the rent money on it. The company is saving over $1 million/day with the 3 major unions working under the 2003 RPA. Now, granted that $1 million is what they are saving by not paying us what we would have been making if it weren't for the RPA. But, do you think that any of us would ratify a new contract that didn't at least restore us to the pay rates we lost in 2003? And, I'm not sure that would suffice either. It would for me, but then I don't have children to support. A friend at SLT (soon to be a DFW friend, we both got our transfers home to DFW) is a single parent with 3 small children. The last number I saw from the proposed health insurance rates would put her monthly premium at over $1000! She's flying high time just to keep a roof over their heads. How could she possibly be expected to pay that kind of health insurance premium?
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The amount of executive variable pay (Performance Share Plan) to be distributed in April was fixed on 12/31/10 as the PSP amounts depend on the performance of AMR stock over the past three years compared to the other companies (peer group). Net income or net loss has no bearing on the PSP payouts, nor does the existence of new contracts for represented employees. As much as AMR stock has lagged during 2008-10 (previous three years), the PSP payouts will again be very small (like it was last year) compared to the big years a few years ago.
Compared to what Arpey and the others had hoped to loot in the way of executive compensation, this year represents yet another very large paycut for them (not that many of you will agree).
Hopeful
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- Dec 21, 2002
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Ohhhhhhhhh,.......So not getting what they think they SHOULD get is a very large paycut?
Tell me FWAAA, does that defense apply to us union folk?
8 years and counting with no increase.....How large would you say our paycut is?
Frank Szabo
Veteran
In reality, who would want the "talented" SOBs? I'm sure if the present infestation of (mis)management is so much in demand, there would have been many offers for their "services" by now and at least one or two would have been lured away by the dollar'$ siren song.
Just like the "lawyers on the steps" and a host of other lies put forth by both the company and their "subsidiary", the TWU, I find the gullibility factor of American's workforce off the charts, in general, as the "true believers" are still saying the company would have filed for bankruptcy.
In truth, we may have made a good decision at the time. Now that the Chapter 11 of the US Code has changed somewhat, it may make a filing now extremely unpalatable to Centrepork - nobody really knows as a filing of the magnitude of AMR hasn't happened since October 2005. If it isn't that bad (as will, no doubt, be said by the pro-company forces here), why the rush to file by Delta and Northwest, getting in under the wire?
I'll not vote to subsidize the company any longer and hopefully others feel the same way.
Expecting our old contract to be restored is a pipe dream. The union will definitely not agree to sign anything that has such a steep increase in health care costs that would offset our pay increase. Other than that, which is stupid math, I'm not so sure what they wouldn't agree to.
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- #10
Actually, AMR has had 11 profitable quarters since the concessions were imposed. Perhaps you were thinking of profitable years? AMR has had but two profitable full years since the concessions.
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- #11
Yes, not receiving the compensation that your contract allows you to get (if the stock performs well relative to the competitors' stock) can result in a huge paycut, just like the huge paycut you and your colleagues have neen laboring under since May 1, 2003.
Arpey's compensation package is designed to pay him about $6 million a year (if relative performance of AMR stock price is in the top half of the peer group) and recently, he has received only a fraction of that. Given the poor performance of AMR, it's the right result, if you ask me. Just like his huge payday when AMR stock hit $41/sh in early 2007 after hitting just $1.25 just four years earlier.
And over $10,000,000,000+ loss in the last 10 years. Informer, it is amazing. Very creative AAccounting indeed.
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- #13
As even Bob Owens understands (and has previously posted), most of AMR's losses over the past decade consisted of non-cash deductions (like amortization and depreciation, primarily representing the deduction of airplane purchases) and non-cash writedowns/writeoffs of assets (goodwill, route authorities, slots and airplanes that lost their value faster than expected). Creative accounting? Hardly. Fairly standard Accounting 101.
By selling billions of dollars of new stock, by issuing billions of dollars of new debt and by selling billions of dollars of non-core assets (like Hotwire, Orbitz, Beacon, ARINC, etc), AMR has managed to continue as a going concern despite billions of dollars of losses since 2001.
By selling billions of dollars of new stock, by issuing billions of dollars of new debt and by selling billions of dollars of non-core assets (like Hotwire, Orbitz, Beacon, ARINC, etc), AMR has managed to continue as a going concern despite billions of dollars of losses since 2001.
Ok, I retract "creative" and insert "routine".
There are no steps for them to have been on. Its a strreet level entrance. Thats was a lie, one of many others.
Heres the thing, if the shareholders agree to pay bonuses to the executives without profits then obviuosly profits dont matter. If it doesnt matter to them why should they matter to us?
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