American Can Do It.

Doc

Veteran
Jul 15, 2003
783
4
www.usaviation.com
Dave & Dave are spending way to much time trying to find ways to get at EMPLOYEES instead of running an airline. When will the BOARD say enough is enough............




AMR Optimism Sends Shares Up 15%




What a difference a year makes.

Last year Wall Street was concerned that AMR (AMR:NYSE - commentary - research), parent of American Airlines, would be forced into bankruptcy, but on Thursday, analysts said the airline would be profitable in 2004, thanks in part to massive cost cuts.


In reaction to the carrier's fourth-quarter results, which were released Wednesday and topped Wall Street expectations, brokerages were busy boosting their price targets and earnings expectations. On Thursday, shares of American closed up $2.30, or 15.8%, at $16.85 on volume of 28.8 million shares, more than six times the daily volume.

"We are upgrading the shares of AMR from hold to buy," said Susan Donofrio, analyst at Deutsche Bank. "This is due to not only the airline's impressive cost performance, helped by savings from labor, strategic initiatives and relief from vendors, suppliers and creditors, but also from the company's willingness to not rest on its laurels."

Before the tide turned for American, shares had slumped to a low of $1.41 on March 12, as the U.S. headed toward a war in Iraq that the Air Transport Association, an industry trade group, said could leave much of the airline industry bankrupt if it dragged on too long. With unions unable to agree to wage concession and with a SARS outbreak sapping lucrative international traffic, the outlook for American was seen as grim.

In the last year, AMR's four-pronged approach to restructuring its business has not only helped the carrier avoid bankruptcy, but has also helped it trim billions in expenses. What AMR needed in order to right its ship came about nine months ago, when CEO Don Carty left the company following a disclosure that executives would retain their bonuses and pension plans in the event of bankruptcy.

With Carty out of the picture, the unions quickly agreed to $1.8 billion in annual wage concessions, helping the carrier avoid bankruptcy and line up another $2 billion in cost reductions due to efficiencies, with another $200 million in relief from creditors. All told, American's plan to streamline operations has trimmed $4 billion in expenses, giving it some of the lowest unit costs among the network carriers.
 
Well DOC,

Bronner "owns" the BOD with 8 out of the 15 seats. So I wouldn't wait for any objections from them in regard to how the company is being ruined.

As far as the unions holding BOD seats?? They are merely token memberships to make the employees think that they have a say in matters. It's a complete farce!! If you refuse to believe this fact then you are simply being foolish.

8 votes to 7 votes. Guess who wins EVERY time??? Bronner :down: :down:

Just strap in and hold on while this ride runs it's course. Then feel free to vomit when the ride is over.

Corporate America SUCKS!!!! :angry: :angry:

Filthy, miserable RATS!!!!! :down: :down: