AMR Said Ready to Study Sale Among Options in Bankruptcy

[Show me the money]

I hope people around the system are watching as the company is moving towards a merger. They see this vote going south. This gets rid of their savings at our cost. Is US Air management any better? At this point it is a different management and there CEO is saying the employees need to be onboard to move forward. Is he telling the truth? All I know is that no one here is going to trust our current management. They have so poisoned the waters that it is impossible to move the process or the airline forward. They have two choices, take the Continental route and replace the entire management and start with fresh qualified people or merge. A merger fixes not just one problem for us but our second. The TWU needs to go away, we need find (what ever union we decide on) a system where our structure at the top is held accountable and can be removed with poor preformance. We need to stand firm and vote NO! and push this process ahead. With a no vote we have options, the alternative is to give the TWU and the company control over EVERYTHING!!!!!!! I hope on the 15th the company and the twu realize the status quo is no more and they have only themselves to blame.

 

[eolesen]

All I know is that no one here is going to trust our current management. They have so poisoned the waters that it is impossible to move the process or the airline forward. They have two choices, take the Continental route and replace the entire management and start with fresh qualified people or merge.

Maybe I'm reading too much into what you're saying there, but the "replace management with new management" didn't actually happen at CO.

But at EA, the bankruptcy judge kicked out Lorenzo, and put a trustee in place.

After that, Lorenzo either saw the writing on the wall or figured it wasn't worth sticking around, and he essentially negotiated his own exit after finding a buyer (SAS) for the stock held by him and Texas Air.

The board then did an executive search, and found Bethune. He brought in a few of his own picks; for the most part, most of middle management and upper management rode out the second bankruptcy and stayed with them into the late 90's. A few may still even be there.

Don't get too excited about a trustee kicking out Horton, though. Putting a trustee in place for a Chapter 11 proceeding is quite rare. It's more common in liquidation cases, especially when there's been gross negligence, fraud, or other actions which would prompt the judge to question whether or not leaving the current CEO in place is detrimental to the creditors, or would greatly improve the chances of either restructuring or settlement of the estate.

http://www.bernstein.../howwhywhen.htm

 

[Frank Szabo]

I hope people around the system are watching as the company is moving towards a merger. They see this vote going south. This gets rid of their savings at our cost. Is US Air management any better? At this point it is a different management and there CEO is saying the employees need to be onboard to move forward. Is he telling the truth? All I know is that no one here is going to trust our current management. They have so poisoned the waters that it is impossible to move the process or the airline forward. They have two choices, take the Continental route and replace the entire management and start with fresh qualified people or merge. A merger fixes not just one problem for us but our second. The TWU needs to go away, we need find (what ever union we decide on) a system where our structure at the top is held accountable and can be removed with poor preformance. We need to stand firm and vote NO! and push this process ahead. With a no vote we have options, the alternative is to give the TWU and the company control over EVERYTHING!!!!!!! I hope on the 15th the company and the twu realize the status quo is no more and they have only themselves to blame.

It's an unfortunate fact, but nobody is going to show or prove anything to anyone. The laws are set up to prevent that very thing - ie, those with the gold make the rules and we become cannon fodder.

All we can do is make personal decisions to help ourselves and families while remembering that none of those decisions have a thing to do with American Airlines, its pets, actions, games, or tricks.

 

[BoeingBoy]

Bankruptcy law is based on the theory that the creditors will be better off if the company reorganizes successfully than they would if the company liquidates. While the validity of that theory could certainly be argued, that's the reality that employees are facing when their employer enters bankruptcy. While there are certainly limits on what management can do in bankruptcy - paying everyone minimum wage with no benefits if the competition pays significantly better and gives benefits is unreasonable - within reason management will get pretty much what it wants. The secured creditors are the only parties having more leverage in some ways than management - if they're willing to get their collateral handed to them. For example, if AA wants to reduce the lease payments on 738's but also wants to keep the aircraft the aircraft leasors don't have to agree to lower lease rates if they don't mind the possibility of getting the airplane lease rejected so would have the upper hand in negotiations. Employees, on the other hand, only have two options - work for the wages/benefits offered or look for another job because at the end of the day management will surely get the employee cost cuts it wants.

Jim

 

[Hopeful]

Employees, on the other hand, only have two options - work for the wages/benefits offered or look for another job because at the end of the day management will surely get the employee cost cuts it wants.

Jim

Methinks you will see the former option occur.

 

[BoeingBoy]

Well, I'm on record as saying that if AA gets the 1113 relief it wants that 95% plus of those that still have a job at that point will show up for work as usual and generally do as good a job as they can. It's just human nature to complain about things that are out of your control yet not change how you act when any of those things happen.

Jim