AMR is next...

a320av8r

Veteran
Aug 20, 2002
1,429
2
www.usaviation.com
Pilots Warn of American Bankruptcy
The Associated Press
AMR Corp., parent company of American and American Eagle airlines, could be forced into bankruptcy as soon as May, its pilots'' union warned.
An analysis of AMR''s finances by the Allied Pilots Association found the Fort Worth-based company has just three months'' worth of cash reserves.
American Airlines pleaded with employees earlier this month to accept steep cuts in wages and benefits to save $1.8 billion annually. The pilots'' analysis concluded that might not be enough.
Realize that the $1.8 (billion) is a minimum figure, a posting on the union''s Web site says. There is no guarantee that AMR won''t ask for more. AMR states the alternative is bankruptcy.
American spokesman Bruce Hicks said the airline would not comment on specifics of the union''s findings, but said talks with unions were productive.
They understand the sense of urgency that we need, he said.
Most major airlines have struggled financially since the Sept. 11 terror attacks and two - United Airlines and US Airways - have sought bankruptcy protection.
AMR chief financial officer Jeff Campbell said in January that American was losing about $5 million a day and would continue to do so during the winter, the weakest part of the travel season. Based on that, the pilots calculate American would need to file for bankruptcy May 25.
The union said it hopes to take only two months to reach a contract, present it to members and obtain approval. If talks take much longer, the union said, American''s chances of filing for bankruptcy are 100 percent.
American''s flight attendants and ground workers have contracts in place that make them among the best paid in the industry. Contracts for the Association of Professional Flight Attendants and the Transport Workers Union are up for revision in 2004.
The Transport Workers Union began intensive contract discussions this week. The flight attendants'' union said they would also begin discussions if the situation becomes urgent.
Last modified: February 26. 2003 6:55AM
 

PITbull

Veteran
Dec 29, 2002
7,784
456
www.usaviation.com
Here it goes...

They should be burning major cash now, as I am sure they want to fly into BK quicker than lightening so that they can "hammer" their employees.

My crystal ball says NW is next followed by DL and then CO, in that order. Reason? I believe CO, will go last to "save face", since they have done this twice before, and their "Great Oz" is now at U.

You know, I wrote about this way back in September. My Crystal ball is alive and working very well.

 

RJStud

Member
Aug 20, 2002
50
0
No BK for DAL unless they cannot get the mainline pilots to take wage concessions. They are saying they have enough cash and assets to operate with our current loses for 13 years.
 

PITbull

Veteran
Dec 29, 2002
7,784
456
www.usaviation.com
Thanks for reply Stud,

But, that's my prediction from way back in Aug. I wrote this to our management and MEC about the "Domino Effect. I knew what this was all about in the summer. This was about Labor cost reduction in great magnitude.

There IS NO WAY, that DL will not take advantage of the present economic situation to bring their costs way down.
They will have no choice but to burn the CASH as they cannot maintain lease agreements negotiated when times were at their peak, and present labor costs, in light of the fact that the other majors will be able to compete with the "lowest of cost carriers". The "mainline" pilots will not give the kind of concession needed to compete, unless they are forced. It's human nature. No other way but to implement the "plan".

They have no choice now. Regarding the "plan" and in line with Corporate thinking: "What's good for one; is good for all"
 

BDLDFW

Advanced
Aug 21, 2002
112
0
[blockquote]
----------------
They should be burning major cash now, as I am sure they want to fly into BK quicker than lightening so that they can hammer their employees.

My crystal ball says NW is next followed by DL and then CO, in that order. Reason? I believe CO, will go last to save face, since they have done this twice before, and their Great Oz is now at U.
----------------
[/blockquote]

I guess w/ all these other carriers headed to Ch11, then will US lose all it's competivitve advantages it hoped to achieve in Ch11?
 

Slam&Click

Member
Aug 24, 2002
90
0
"[a href="http://www.miami.com/mld/miamiherald/business/5271090.htm"]Delta & Pilots News Article[/a]"
 

jj

Senior
Aug 20, 2002
290
0
What i find amazing is if AA goes bk.More than 43% of the air traffic in the US will be under bankruptcy protection- scary!
 

delldude

Veteran
Oct 29, 2002
28,242
5,881
Downrange
www.youtube.com
[blockquote]
----------------
On 2/27/2003 8:54:43 AM tug_slug wrote:

[blockquote]
----------------
On 2/26/2003 10:43:45 PM BDLDFW wrote:

I guess w/ all these other carriers headed to Ch11, then will US lose all it's competivitve advantages it hoped to achieve in Ch11?

----------------
[/blockquote]

BD thats when we see how good Dave really is. Right now he cant make a bad decision but once U is out of BK he wont have a bankrupcty judge making sure he gets what he wants.

----------------
[/blockquote]
yeah,even after we emerge theres still going to be a cash bleed rate for a year or so.
 

tug_slug

Veteran
Sep 9, 2002
550
0
www.usaviation.com
[blockquote]
----------------
On 2/26/2003 10:43:45 PM BDLDFW wrote:

I guess w/ all these other carriers headed to Ch11, then will US lose all it's competivitve advantages it hoped to achieve in Ch11?

----------------
[/blockquote]

BD thats when we see how good Dave really is. Right now he cant make a bad decision but once U is out of BK he wont have a bankrupcty judge making sure he gets what he wants.
 

tug_slug

Veteran
Sep 9, 2002
550
0
www.usaviation.com
[blockquote]
----------------
On 2/26/2003 7:01:37 PM RJStud wrote:

No BK for DAL unless they cannot get the mainline pilots to take wage concessions. They are saying they have enough cash and assets to operate with our current loses for 13 years.
----------------
[/blockquote]

RJ once UA, AA & NW lower their operating cost's thru BK those numbers at DAL will change and they'll be forced into BK.
 

PITbull

Veteran
Dec 29, 2002
7,784
456
www.usaviation.com
[blockquote]
----------------
On 2/26/2003 10:43:45 PM BDLDFW wrote:

[blockquote]
----------------
They should be burning major cash now, as I am sure they want to fly into BK quicker than lightening so that they can hammer their employees.

My crystal ball says NW is next followed by DL and then CO, in that order. Reason? I believe CO, will go last to save face, since they have done this twice before, and their Great Oz is now at U.
----------------
[/blockquote]

I guess w/ all these other carriers headed to Ch11, then will US lose all it's competivitve advantages it hoped to achieve in Ch11?

----------------
[/blockquote]

You betchya. When this shake out is all over, we will all be just competing against one another as "low cost carriers". No advantage, no one will have an edge unless of course, you can get your employees to pay for all their Medical and work for free.


 

luv2fly

Veteran
Aug 21, 2002
1,187
0
www.usaviation.com
[blockquote]
----------------
On 2/27/2003 8:54:05 AM DELLDUDE wrote:

to keep the playing field level all the other majors will have to go bk......or else.
----------------
[/blockquote]
And I suppose that when all the majors declare bk, WN,JB, and Airtran will have to declare bk to compete with the majors, and then the majors will have to cut costs again in order to ........
Idiotic line of thought.
The market should have been allowed to correct itself. There is too much capacity for the demand. Instead, in a futile attempt to save one or two airlines in the form of the ATSB, the government has created an industry that rewards poorly run airlines with government loans. Flame away, but US should have been allowed to fail, but it wasn't so now US will drag all other carriers down with it. I guess misery really does love company.
 

luv2fly

Veteran
Aug 21, 2002
1,187
0
www.usaviation.com
[blockquote]
----------------
On 2/27/2003 1:50:57 PM dfw79 wrote:

Hmm...US Airways doesn't have any the loan money from the ATSB guaranteed/backed loan - please get the idea out of your head that the fed is giving cash to U.


----------------
[/blockquote]
US's planned emergence from BK is contingent on obtaining the government loan isn't it? In order to get the loan, employee benefits, compensation, and pensions are being sacrificed. Meanwhile your management is being rewarded financially for sticking with a sinking ship.
The rest of the industry will suffer while US Airways continues to die a long slow death.