Just out of curiosity, what happens with the court verdict against AA? Does it roll over to US as well? I'm sure it depends on how the transaction is structured. If the new AA/US is responsible for the back pay, do they pay and continue the flight? Or cut and run? I know it is unknown at this point, just looking for opinions. Does anyone remember how much it was? Did it have continuing interest on it?
AA/US and TLV
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There is no judgment against AA. The TWA employees obtained a judgment in Israel against TWA for severence and attempted to collect against TWA in its liquidation in US Bankruptcy court in Delaware following the sale of assets to AA.
Nevertheless, if Isreali courts believe that AA is liable, then that liability will of course remain once US and AA merge and someone will have to get out a checkbook and pay them. With interest, their judgment may be worth $40 million or more by now, but remember that CO paid more than $40 million per LHR slot in 2008, so it amounts to a pesky cost of doing business.
Nevertheless, if Isreali courts believe that AA is liable, then that liability will of course remain once US and AA merge and someone will have to get out a checkbook and pay them. With interest, their judgment may be worth $40 million or more by now, but remember that CO paid more than $40 million per LHR slot in 2008, so it amounts to a pesky cost of doing business.
Thanks. I was under the maybe mistaken idea that the Israeli courts moved the judgement onto AA as well. I guess if it is that amount, they will just pay it. Probably depends on how the route is doing and what their future plans are for it. Like adding JFK. They plan on giving the USAPA pilots $40 million anyway, what's another $40 million?
robbedagain
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would the 2nd flight also be phl to tlv or clt to tlv?
Comprehension problems?
We all have been talking about when more A332s come into the fleet that US has been talking about adding a second daily PHL-TLV flight.
And who cares you flew LH to TLV?
Want a trophy or a medal?
Glad to see you are spending your money with foreign companies than US based companies, NOT!
We all have been talking about when more A332s come into the fleet that US has been talking about adding a second daily PHL-TLV flight.
And who cares you flew LH to TLV?
Want a trophy or a medal?
Glad to see you are spending your money with foreign companies than US based companies, NOT!
[sup]I used to only drive foreign made cars. Now I have a 2012 F150. What did the "global economy" and free trade give us? My neighbors and friends out of work because the same product could be made cheaper in asian sweat shops. I'll pay more and buy domestic from now on. [/sup]
eolesen
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If the restructuring or a merger results in AMR Corporation ceasing to exist as a legal entity (quite possible given past bankruptcies), it's possible there'd be nothing to attach a claim to.
But that's under our laws. A foreign court can do whatever they wish... just as they've tried to say that the claim against the TWA estate was portable over to AMR, even though AMR had nothing to do with it.
But that's under our laws. A foreign court can do whatever they wish... just as they've tried to say that the claim against the TWA estate was portable over to AMR, even though AMR had nothing to do with it.
WorldTraveler
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In all likelihood, AMR won't cease to exist because it possesses huge tax assets because of AA's losses over the past several years that require a connection w/ the previous company.
Every US airline that has gone thru bankruptcy has dealt with the issue and been able to retain its tax assets... not likely that will change with AMR.
The whole issue of tax assets is a very significant issue that hasn't been addressed much on here - but which argues for AMR remaining as the controlling entity in a merger - at least legally.
Kilofinal,
good on you for buying made in America... the US automakers have done a very good job of turning themselves around but few products as complex as an automobile - let alone a passenger aircraft - are built with parts from just one country.
It also doesn't hurt that Detroit is the global leader in light trucks, esp. for consumer use.
Every US airline that has gone thru bankruptcy has dealt with the issue and been able to retain its tax assets... not likely that will change with AMR.
The whole issue of tax assets is a very significant issue that hasn't been addressed much on here - but which argues for AMR remaining as the controlling entity in a merger - at least legally.
Kilofinal,
good on you for buying made in America... the US automakers have done a very good job of turning themselves around but few products as complex as an automobile - let alone a passenger aircraft - are built with parts from just one country.
It also doesn't hurt that Detroit is the global leader in light trucks, esp. for consumer use.
