Bankruptcy Today !

WingNaPrayer

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I think they''ll give BK another 30 days at least. They need to see what the unions do (chances are a YES vote will prevail again) and they also need to look at the fall out from their Q1 reports. Personally, I can''t see how AMR could sit there and bleed nearly 12 million a day and not say anything, or allow it to continue. The wage concessions Carty was focusing on aren''t going to do a bit of good if the bleed is really that deep.
 

Airlines9

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Apr 22, 2003
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WNP,

Agreed. They wont file today, but with a Billion dollar loss in just one Q they will have to. Everyone should realize that even if the employees vote yes, I hope not, that would not stop AMR from filing. AMR will lose between 3-4 Billion this year if they dont change their business plan. The 1.8 Billion in employee give backs will just cut it in half. It still way too high of a loss. Management has to figure out how to save at least another $2 Billion a year. The only way is in bankruptcy. A prepackage one is the way to go.

#9
 

Airlines9

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CNN is reporting that there is an emergency meeting at 9am this morning of the BOD. They will decide the fate of Carty & bankruptcy. With a BILLION dollar lost in the 1Q there isnt really any choice. Even with all the employees concessions in place AMR would have lost well over $600 million in just 3 months. Still way to much. The loss isnt the employees fault. Its just really bad management. Time for a change!

The way to go is a prepackage bankruptcy. Sit down with the new management team, the Unions, and the creditors and hammer out new agreements with everyone. Reinvent the business model of air travel. Do a reverse split on the stock or just wipe it out. This is the only way AMR can be competitive in todays market. Even with the current employee give backs the AA cost per mile will be 9.5 cents- 10 cents. While SWA is a little over 7 cents and JetBlue is just over 6 cents. AA can not compete with cost that are 50% higher than competitors.

Today will be the turning point for AMR. One way or the other.

#9
 

WXGuesser

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I believe the following will happen today...

The BOD will meet. A press conference will be held announcing the following:

Don Carty will step down as CEO. Someone from the BOD will serve as interim chairman (my guess would be Boren) until a new CEO can be selected/appointed.
The union leadership will sign off on the T/As as written.
AMR will file for Ch. 11 bankruptcy of the "pre-packaged" variety, to restucture vendor contracts, etc.

We will see who is right....

TANSTAAFL
 

WXGuesser

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On 4/24/2003 9:52:28 AM FWAAA wrote:
You are probably correct, except for one thing:

Why on earth would AA spend hundreds of millions filing Ch 11 if the employees willingly sign the TAs as a result of Carty''s (hoped-for) departure?

You really don''t understand just how expensive a trip to the bankruptcy aisle can be, do you? Think Lawyers, Bankers, Accountants, Consultants, etc. They don''t all work for free, you know. They take their money off the top, adding to the already crushing expenses.

But hey, maybe you''re right.

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Because the company won''t have to fight with the most contentious folks of all, labor.

I believe the company will say "OK, we''ve gotten our concessions from labor, let''s try to reorganize the rest of the airline." There may be some additional protection afforded the unions by the company in order to make that happen, if possible under a BK filing.

AMR is already paying BK lawyers, and has been for a couple of months. Might as well get some use from them.

When you look at the situation as a whole, this is the simplest and most logical course of action. By the principle of Occam''s Razor, that is the course they will choose.

TANSTAAFL
 

FA Mikey

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Aug 19, 2002
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On 4/24/2003 9:52:28 AM FWAAA wrote:


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You are probably correct, except for one thing:

Why on earth would AA spend hundreds of millions filing Ch 11 if the employees willingly sign the TAs as a result of Carty''s (hoped-for) departure?

You really don''t understand just how expensive a trip to the bankruptcy aisle can be, do you? Think Lawyers, Bankers, Accountants, Consultants, etc. They don''t all work for free, you know. They take their money off the top, adding to the already crushing expenses.

But hey, maybe you''re right.

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Maybe AA could try to cram a POS offer to them and expect them to all come running for the shear joy of working here. Maybe they would be willing to bear the burden of or companys failures, like the employees are expected to.
 

FWAAA

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Jan 5, 2003
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On 4/24/2003 9:39:11 AM WXGuesser wrote:

I believe the following will happen today...

The BOD will meet. A press conference will be held announcing the following:

Don Carty will step down as CEO. Someone from the BOD will serve as interim chairman (my guess would be Boren) until a new CEO can be selected/appointed.
The union leadership will sign off on the T/As as written.
AMR will file for Ch. 11 bankruptcy of the "pre-packaged" variety, to restucture vendor contracts, etc.

We will see who is right....

TANSTAAFL

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You are probably correct, except for one thing:

Why on earth would AA spend hundreds of millions filing Ch 11 if the employees willingly sign the TAs as a result of Carty''s (hoped-for) departure?

You really don''t understand just how expensive a trip to the bankruptcy aisle can be, do you? Think Lawyers, Bankers, Accountants, Consultants, etc. They don''t all work for free, you know. They take their money off the top, adding to the already crushing expenses.

But hey, maybe you''re right.
 

Flyboy4u

Veteran
Oct 6, 2002
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On 4/24/2003 9:45:29 AM twaokc wrote:

Boren will make Crandall and Carty look like angels.

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Boren is an Angel. He was a great Governor, Senator, and President of the University of Oklahoma, which he has a proven track record. It would be nice to see some new blood in a company that needs a transfusion.