New Concessions By Oct. 17?

[nbmcg01]

AA may try to get some concessions, but no CHPT 11. The company would not risk having to make payouts with almost $4BB in the bank. I think AA and CO are safe, but anything can happen. Just my thoughts............

[post="302044"][/post]​

AA won't file for BK..They don't want to open the books and besides the pilots will sell their first born and current wife to protect their pensions. And if concessions are "requested", a vote won't be necessary. Why bother with the expense? Look what happened last time.

 

[Hopeful]

All of you are way off base on AMR and CH.11!


AS LONG AS THE TWU IS AROUND, THERE WILL BE NO BANKRUPTCY!

THE TWU WILL HAVE US WORK FOR EVEN LESS AS LONG AS THEY CONTINUE TO RECEIVE UNION DUES!

 

[B.O.B.]

All of you are way off base on AMR and CH.11!
AS LONG AS THE TWU IS AROUND, THERE WILL BE NO BANKRUPTCY!

THE TWU WILL HAVE US WORK FOR EVEN LESS AS LONG AS THEY CONTINUE TO RECEIVE UNION DUES!

[post="302074"][/post]​

Likewise with the APFA!

 

[Wretched Wrench]

AS LONG AS THE TWU IS AROUND, THERE WILL BE NO BANKRUPTCY!

[post="302074"][/post]​

But there are advantages of BK that cannot be granted by the TWU. The TWU will give away our wages, benefits and pension first. Then, if AA's straits are dire enough, there will be a BK. But AA may not reach dire straits until after the oct 17 changes, so BK will not be quite as attractive.

.

 

[Emil.Howes]

Don't worry......

You Folks at AA will be fine!
Just because the rest of the industry is in BK does not mean you will be.
After everyone else has been raped, you all have a 'heads' up on the process and know how to prostrate yourselves for minimal pain.
(My Rape Hurt because I did not expect it!!!)

Take Care,
-BigE

 

[AMFAMAN]

Don't worry......

You Folks at AA will be fine!
Just because the rest of the industry is in BK does not mean you will be.
After everyone else has been raped, you all have a 'heads' up on the process and know how to prostrate yourselves for minimal pain.
(My Rape Hurt because I did not expect it!!!)

Take Care,
-BigE

[post="302152"][/post]​

Believe me, after 3 twu specials: the 89, 95, 03 contracts, it's all numb down there, I won't feel a thing. :blink: :mf_boff:

 

[aafsc]

AA could only make BK by OCT 17 through a massive payment to the PBGC of the amount they are underfunded: almost $3 Billion Dollars.

If that was done, almost no one in Congress could say boo because they are too busy pontificating about the current funding status of airline pensions.

[post="302029"][/post]​

Why would AA pay anything to the PBGC? Our pensions are not terminated. They are 80% funded.

 

[B.O.B.]

Why would AA pay anything to the PBGC? Our pensions are not terminated. They are 80% funded.

[post="302175"][/post]​

For now they're. But, time will tell.

 

[WorldTraveler]

You might remember that DL and NW both had alot more cash in March/April of 2003 when AA was pleading poverty and threatening BK if its unions didn't capitulate.

And there is no threshold of money that a company has to not have in order to file for bankruptcy. There are many reasons why companies file for bankruptcy and cash position is only one of them.

Finally, don't kid yourself that AA will not move very quickly to shore up its costs if DL and NW look like they are going to cut employee costs dramatically (which I expect they will). AA simply cannot compete when DL, NW, and UA all have lower compensation than AA. For UA, it hasn't been as much of a threat because UA has been less efficient with people than AA; DL and NW have a pretty long track record of being more efficient so when they lower costs and are more productive, AA is in trouble.

 

[will fix for food]

You might remember that DL and NW both had alot more cash in March/April of 2003 when AA was pleading poverty and threatening BK if its unions didn't capitulate.

And there is no threshold of money that a company has to not have in order to file for bankruptcy. There are many reasons why companies file for bankruptcy and cash position is only one of them.

Finally, don't kid yourself that AA will not move very quickly to shore up its costs if DL and NW look like they are going to cut employee costs dramatically (which I expect they will). AA simply cannot compete when DL, NW, and UA all have lower compensation than AA. For UA, it hasn't been as much of a threat because UA has been less efficient with people than AA; DL and NW have a pretty long track record of being more efficient so when they lower costs and are more productive, AA is in trouble.

[post="302262"][/post]​

I truly hate the mindset that the airlines have that they have to cut costs so that they can cut the ticket price lower than the competitor.

 

[Bagbelt]

As far as compensation, as someone familliar with industry CBA's, we are still below UA. And outsourcing maintenance costs a fortune, even the LCC'S do quite a bit of their own. The stereotype is huge money with great workrules, that has been fading for 15 years and is gone allready. I believe AA will use the pension as the carrot to grab what they can, but outside vacations and medical, there are few things left that add up to real money.

 

[kiowa]

gotta agree with the princess. concesions were so easy last time, aa would be foolish not to try it a second time. 50/50 that the employees will roll over again.

 

[Wretched Wrench]

gotta agree with the princess.  concesions were so easy last time, aa would be foolish not to try it a second time.  50/50 that the employees will roll over again.

[post="302287"][/post]​

Blackmailers ALWAYS come back.

.

 

[MCI transplant]

Why would AA pay anything to the PBGC? Our pensions are not terminated. They are 80% funded.

[post="302175"][/post]​

<_< aa---- You just don't know how the PBGC works! Where do you think they get their money? And no! It's not from Uncle Sam! Not yet at least!!!

 

[aafsc]

<_< aa---- You just don't know how the PBGC works! Where do you think they get their money? And no! It's not from Uncle Sam! Not yet at least!!!

[post="302308"][/post]​

Perhaps I should have worded my respose to Boomer's post better. I know that AA has always paid the PBCG the required premiums for our pensions. It appears to me that Boomer was saying that for AA to get rid of a lot of cash in order to file BK before Oct 17, they would have to pay the pension underfunding. If this is the case, the money for the underfunding would go to the pension plans themselves, not the PBGC.