Goin'' down down down


Dec 21, 2002
AMR, Delta Shares Sink as War Fears Weigh
Tuesday March 11, 10:37 am ET
NEW YORK (Reuters) - Shares of AMR Corp. (NYSE:AMR - News), the parent of American Airlines Inc., and Delta Air Lines Inc. (NYSE:DAL - News) tumbled on Tuesday on concern over how war with Iraq will affect the two carriers.

AMR shares traded Tuesday morning at $2, down 41 cents, or 17 percent, after earlier falling to $1.90. Delta shares traded at $7.42, down $1.28, or 14.7 percent, after earlier falling to $7.35.
American, which is based in Fort Worth, Texas, has begun talks with Wall Street banks about lining up $2 billion in so-called debtor-in-possession financing that it could tap if it sought Chapter 11 bankruptcy protection, people familiar with the matter said.
The Association of Professional Flight Attendants, which represents American''s flight attendants, said it has reason to believe an American bankruptcy might happen sooner rather than later.
Delta, the Atlanta-based No. 3 U.S. airline, said on Monday it expects negative cash flow from operations this quarter, after in January forecasting slightly positive cash flow. It also said it is cutting capacity this quarter by 1.5 percent because war fears are causing fewer travelers to book flights.
UAL Corp.''s (NYSE:UAL - News) United Airlines Inc., the No. 2 U.S. airline, sought bankruptcy protection in December. U.S. Airways Group Inc. (OTC BB:UAWGQ.OB - News), the No. 7 U.S. airline, sought bankruptcy protection in August.
Separately, Travel reservations company Sabre Holdings Corp. (NYSE:TSG - News) on Tuesday cut its first-quarter profit forecast because war fears and Latin American political problems are reducing travel. Sabre shares fell as much as 3.9 percent.
From Today's New York Times:

On Friday, the president of the union, John Ward, told members in a message posted on the association's Web site that the union thought a bankruptcy filing "may be sooner rather than later."

Speculation about the chances of a filing has circulated in the industry for some time, but Mr. Ward's prediction contributed to a 14 percent decline yesterday in the shares of AMR, which closed at $2.41.

Do us a favor John, the next time you feel the urge to open your mouth, resist it.

Rest of the article at:

American Airlines' stock falls after union leader's bankruptcy comment DAVID KOENIG

DALLAS, Mar 10, 2003 (The Canadian Press via COMTEX) -- American Airlines' stock took another hit Monday, falling 14 per cent after the union representing flight attendants warned that the carrier might file for bankruptcy "sooner rather than later."

The president of the Association of Professional Flight Attendants said union leaders expect to negotiate a concessions package to be voted on by the membership. "This certainly is not a position we would choose to be in," union leader John Ward said in a message taped Friday. "However, the situation is what it is, and an AMR bankruptcy filing would only make this difficult situation worse."

American's parent, AMR Corp., raised the possibility that it might seek protection from creditors last month when it asked employees for $1.8 billion US in annual wage and other concessions as part of $4 billion in planned annual cost cuts.

American, the world's largest carrier, has let union leaders and their consultants look over the books to confirm the financial crisis facing the company, which lost $3.5 billion last year.

"APFA has reason to believe that the timing for an AMR bankruptcy may be sooner rather than later," Ward said.

Ward was unavailable for comment Monday, but a spokesman for the flight attendants' union said the comment wasn't based on anything specific in AMR's finances.

"We were trying to convey to our members that bankruptcy is an option - the company has made no bones about it," said the spokesman, George Price. "At no time have we ever been given information that bankruptcy is imminent."

Investors have closely followed American's discussions with its three major unions - representing flight attendants, pilots and ground workers - and were apparently spooked by the most recent comments.

Shares of AMR fell 40 cents, or 14 per cent, to close at $2.41 US each Monday on the New York Stock Exchange. They have lost 92 per cent of their value in the past year to trade near a 52-week low of $2.25.

American said it would not comment on the timing of a possible bankruptcy filing.

"Time is of the essence," said spokesman Todd Burke. "American is committed to working with our union leaders and employee groups to find mutually acceptable solutions to our situation."

After a robust 2000, AMR and most other major U.S. carriers have been losing money since early 2001, as the weak economy and fear of terrorism cut into travel and competition from low-cost carriers undermined prices increases.

American is negotiating on a new contract with pilots, who are targeted for the biggest chunk of labour concessions, $660 million.

Company executives will meet Tuesday with representatives of the Transport Workers Union, which represents mechanics, ramp workers and other ground workers, Burke said. That union recently rejected a planned $620 million in concessions but left the door open to further negotiations.

American has not begun formal negotiations over its requested $340 million in annual cuts from flight attendants, but chairman and chief executive Donald Carty met with the union's directors Monday.

Neither union officials nor company representatives would discuss Carty's comments in the one-hour, closed-door meeting.


As of mid day, AMR was trading at 1.92 after a low today of 1.85
LGA Fleet Service,

Not talking about BK will not make it go away. We are here, and it will happen soon.
This talk is about to get as old as the threats that if IRAQ doesn't disarm we will attack.

How much talk is too much talk?

This reminds me of my Dad threatining to "pull the car over" while on family vacation for discipline.

Don't make me pull this car over.

If I have to pull this car over someone's going to get it.

One more time and I will pull this car over.
On 3/11/2003 4:50:28 PM bagsmasher wrote:

LGA Fleet Service,

Not talking about BK will not make it go away.


I am well aware of that, my point is the leadership of the unions should choose their words a tad more carefully.

Ward's foot in mouth along with the DIP discussions hitting the papers led to the downhill ride.
One more day of this and AMRs stock will be trading at less than a bankrupt carrier...UA!

As of today their stock is officially toilet paper at a low of 1.25 so far, you can buy their stock cheaper than most four packs of Charmin.

I wonder if the paper it's printed on is biodegradeable...or septic tank approved.

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