AA avoids Bankruptcy?

[Diversion]

All these conflicting news reports are crazier than a message board rumor mill. Which stories are true?

I guess I''ll wait and see what happens tomorrow.

Best of luck to us all.

 

[KCFlyer]

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On 4/24/2003 7:22:58 PM Imagolfer wrote:

AMR stock rose Thursday, as investors held out hope the airline can restore labor peace and avoid bankruptcy. In trading on the New York Stock Exchange, AMR shares rose 24 cents, 6.3 percent, to $4.04. They gained another 31 cents in extended trading.

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When will the business press stop using the word "investors" in their articles? Use the more apt term of "traders" or the term I prefer when trading stocks of a company on the brink of bankruptcy - gamblers. Call me old fashioned, but to me, "Investors" implies that the person "investing" is doing so because of belief in the long term prosperity of a company. These Wall Street Weasles are just playing with the volatility of the stock. They certainly aren''t "investors".

 

[KCFlyer]

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On 4/24/2003 7:34:25 PM RV4 wrote:

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On 4/24/2003 7:29:08 PM KCFlyer wrote:

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" in their articles? Use the more apt term of "traders" or the term I prefer when trading stocks of a company on the brink of bankruptcy - gamblers. Call me old fashioned, but to me, "Investors" implies that the person "investing" is doing so because of belief in the long term prosperity of a company. These Wall Street Weasles are just playing with the volatility of the stock. They certainly aren't "investors".​

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Yes, but trader sounds real close to traitor, which could be confused with management gurus posing as customers on internet bulletin boards claiming they will fly another airline if the union folk wont capitulate.

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Who said anything about capitulating? I just said I tend to avoid airlines that were being routed to bankruptcy court by labor groups who were convinced that anyone in a white shirt and necktie was a management weasle. May all be a moot point anywho - with all the happiness that's been going on this past week, there might not BE an American Airlines to fly anymore. But that won't bother you...you've already got that new job lined up, right?

 

[RV4]

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On 4/24/2003 7:29:08 PM KCFlyer wrote:

----------------
" in their articles? Use the more apt term of "traders" or the term I prefer when trading stocks of a company on the brink of bankruptcy - gamblers. Call me old fashioned, but to me, "Investors" implies that the person "investing" is doing so because of belief in the long term prosperity of a company. These Wall Street Weasles are just playing with the volatility of the stock. They certainly aren''t "investors".​

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Yes, but trader sounds real close to traitor, which could be confused with management gurus posing as customers on internet bulletin boards claiming they will fly another airline if the union folk wont capitulate.

 

[Imagolfer]

This came after the reports that AA will file tomorrow.

http://biz.yahoo.com/ap/030424/american_airlines_12.html
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Associated Press
American Air CEO Quits; Unions Reach Deal
Thursday April 24, 8:12 pm ET
By David Koenig, AP Business Writer
American Airlines CEO Resigns; Unions Reach Concessions Deal in effort to Stave Off Bankruptcy


FORT WORTH, Texas (AP) -- The chairman and chief executive of American Airlines resigned Thursday as labor leaders and negotiators for the carrier agreed to a sweetened package of cost cuts in an effort to keep the company out of bankruptcy.
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Gerard Arpey, the company''s president, will replace Donald J. Carty as CEO, while board member Edward A. Brennan will take over as chairman.

Carty''s resignation came after flight attendants reportedly balked at the new deal, which improves potential bonuses for employees and shortens the length of concessions by one year to five years. The deal would also provide incentives for additional cash compensation, said John Darrah, president of the pilots'' union.

The boards of the pilots and transport workers unions approved the new concessions package, but flight attendants also would have to OK it, as would the company''s board of directors.

A $1.8 billion cost-cutting package that was agreed upon last week unraveled after employees learned of previously undisclosed executive perks, including bankruptcy-proof pensions and huge bonuses.

Carty apologized for not telling workers sooner about the executive benefits. The company canceled the bonuses but not the $41 million in pension funding for 45 executives, which would be paid even in bankruptcy.

Arpey, who will remain as president, said he would work to restore the confidence of all employees in their great company.

It was not clear, however, whether the combination of Carty''s resignation and the sweetened labor deal would be enough to prevent a bankruptcy filing by the world''s largest carrier. AMR board members, who met all day Thursday, declined to comment, referring questions to the company.

Adding to the pressure on Carty was Wednesday''s first-quarter financial report from AMR, which posted a worse-than-expected $1.04 billion loss.

Airlines have been hit hard by a downturn in travel caused by the weak economy, the 2001 terrorist attacks, fear of new terrorism around the Iraq war, and the SARS outbreak. Major carriers like American have also found it difficult to raise prices because of competition from low-fare carriers on many of their routes.

AMR stock rose Thursday, as investors held out hope the airline can restore labor peace and avoid bankruptcy. In trading on the New York Stock Exchange, AMR shares rose 24 cents, 6.3 percent, to $4.04. They gained another 31 cents in extended trading.

 

[Imagolfer]

Yes, but perhaps they can get better service from the "stewerdasses" from the other carriers