American Airlines near bankruptcy

geo1004

Senior
Aug 22, 2002
288
0
Unfortunately, AA will, IMO, file chap. 11.

Chap. 11 is becoming the only way airlines can quickly address their costs. Every airline, with it''s labor negotiations, has proven that the long, drawn out negotiation process quite simply does not work. My sincere hope is that US, having gone thru chap. 11 quickly, will be the best-possitioned of the majors to return to profitability.
 

zonecontroller

Advanced
Sep 3, 2002
176
0
WASHINGTON (AFP) - American Airlines, the world''s largest passenger carrier, could seek Chapter 11 bankruptcy protection as early as next week, The New York Times reported.


The New York daily based its report on two unnamed bankers whom it said had been briefed on the airline''s condition. One said that the airline needed 1.5 billion dollars to avoid seeking the protection from its creditors granted by bankruptcy.


Tara Baten, a spokeswoman for American, told the Times that the airline, a unit of AMR, still hoped to avoid a Chapter 11 filing.


We continue to have face-to-face negotiations working around the clock and we remain hopeful that we can restructure the company consensually with our labor groups, rather than in the courts, she told the daily.


Management has been negotiating for weeks with its unions seeking concessions totaling 1.8 billion annually.


Concessions sought from pilots alone would total 600,000 dollars annually, the Times said.


US airlines have been stalling since the September 11, 2001 attacks on New York and Washington. The second-largest carrier, United, filed for bankruptcy last year as did US Airways, the sixth-largest.


The situation became worse with the start of the US-led war on Iraq (news - web sites) eight days ago. American announced a reduction in international flights by six percent even before the fighting began and foresees a reduction of domestic flights by seven percent by the beginning of April.
 

aj04878

Member
Feb 8, 2003
57
0
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On 3/28/2003 8:59:10 AM geo1004 wrote:

My sincere hope is that US, having gone thru chap. 11 quickly, will be the best-possitioned of the majors to return to profitability.

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AMEN!