Things you think will happen in BK court
- Thread starter Hopeful
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RevThruster
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[scenario one] Bought by USAIRWAYS, the name AA kept, the livery changed, scope gone, pensions gone, pay slashed, routes downsized, HQ in DFW,
[scenario two] liquidated and the pieces purchased by the remaining carriers.
Hopeful
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true....I wonder if he's still fighting to be released from mediation...
JFK Fleet Service
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What will happen?
Pensions gone, scope gutted,wholesale outsourcing,pay and benefit cuts across the board.
Pensions gone, scope gutted,wholesale outsourcing,pay and benefit cuts across the board.
WorldTraveler
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AMR has a fairly short period to devise a new business plan so changes will happen very quickly. There will also likely be alot of incentive on AA's part to cut deeply to ensure they have a viable plan.
Fasten your seatbelts.
Fasten your seatbelts.
Hopeful
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Cabin service GONE...Maybe all of fleet service as well......
JFK Fleet Service
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Cabin gone is not even a question, I don't know if Fleet will be gone entirely,small stations for sure,the larger ones may remain but the junior F/T'er will probably be early to mid 90's seniority now.
Good times.
Good times.
Overhaul AND line maintenance, cabin, fleet service all outsourced--current employees guaranteed only an offer of job with outsourcers
Pilot and FA hours scheduled to near FAA max, huge work rule changes in all remaining groups resulting in layoffs of 5-10K and maybe more, swift disciplinary actions for inappropriate activities, heavy emphasis on customer service--no smile no job, supervisory check seat riders galore
Frozen pensions if not defaulted and handed entirely to PBGC meaning your pension estimates will not be met if underfunded
Downsizing to reduce MD80 impacts in short tern 2-3 year period causing additional layoffs, awaiting delivery of competitive replacement ac
B-judge ripping up contracts--removal of scope OR drastic changes allowing AMR to own/operate more than a single airline, new contracts trotted out with additional reductions in benefits--medical, retiree medical to 65 only all groups, b scale in ALL work groups, pay plan introduction of variable pay plans depending on prifitability
Renegotiate airport leases, aircraft leases. many supplier contracts
Blistering competition for trancon, ord hub
And to think some of you guys were daring the company to do just this.
Pilot and FA hours scheduled to near FAA max, huge work rule changes in all remaining groups resulting in layoffs of 5-10K and maybe more, swift disciplinary actions for inappropriate activities, heavy emphasis on customer service--no smile no job, supervisory check seat riders galore
Frozen pensions if not defaulted and handed entirely to PBGC meaning your pension estimates will not be met if underfunded
Downsizing to reduce MD80 impacts in short tern 2-3 year period causing additional layoffs, awaiting delivery of competitive replacement ac
B-judge ripping up contracts--removal of scope OR drastic changes allowing AMR to own/operate more than a single airline, new contracts trotted out with additional reductions in benefits--medical, retiree medical to 65 only all groups, b scale in ALL work groups, pay plan introduction of variable pay plans depending on prifitability
Renegotiate airport leases, aircraft leases. many supplier contracts
Blistering competition for trancon, ord hub
And to think some of you guys were daring the company to do just this.
WorldTraveler
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accurate assessment....
the following information to AA's aircraft lessors provides a likely indication that the AA fleet will shrink fairly quickly... perhaps in part removing some of the "slack" that is in the fleet plus the non-operating aircraft.
"We cannot afford to retain all the aircraft currently in the American and American Eagle
fleets at their current rates, and so we have no choice but to make substantial
reductions in the cost of the aircraft which we retain. Moreover, in view of the large
number of aircraft we have on order from Airbus and Boeing, we also seek to accelerate
our fleet renewal strategy and, as a result, we do not require the use of all aircraft
currently in our fleets. Additionally, to conserve our liquidity, subject to the
requirements of the U.S. Bankruptcy Code, during the 60-day Section 1110 period, we
plan to make payments when due of aircraft rent and mortgage principal and interest
payments only on certain aircraft in our fleets."
autofixer
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Here is what could happen, because it has happened to me:
1. Pension to PBGC (Very likely. You should have bolted while you could.)
2. Pay cuts.
3. Vacation cuts.
4. Duty rigs--nearly non-existent.
5. Sick leave cut.
6. You pay for things that you are not now, i.e., long term disability in my case.
7. Training changes for the worst.
8. Everything will be for the worst. (You should have left while you could.)
9. Aircraft leases terminated, i.e., MD-80s and massive furloughs. You have no contracts to speak of now, the judge decides your fate.
10. You have just lost control. A judge is your CEO now. You don't think someone else can buy you? What is your stock at? Who is going to provide your D.I.P. financing? Your company is very much in play now. Good luck. It sucks, I know, been there done it.
1. Pension to PBGC (Very likely. You should have bolted while you could.)
2. Pay cuts.
3. Vacation cuts.
4. Duty rigs--nearly non-existent.
5. Sick leave cut.
6. You pay for things that you are not now, i.e., long term disability in my case.
7. Training changes for the worst.
8. Everything will be for the worst. (You should have left while you could.)
9. Aircraft leases terminated, i.e., MD-80s and massive furloughs. You have no contracts to speak of now, the judge decides your fate.
10. You have just lost control. A judge is your CEO now. You don't think someone else can buy you? What is your stock at? Who is going to provide your D.I.P. financing? Your company is very much in play now. Good luck. It sucks, I know, been there done it.
PhatSappy
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For starters....
- Prepaid medical account GONE Wait with all the other creditors for payback from BR court.
- Sick leave bank GONE btw / Thanks for the loyalty, Mr. 1150 hours!
- Paid holidays GONE
- Paid vacation GONE
- Overhaul SPUN OFF and yes, a lot of line maint. too. Goodbye, CL2 stations.
- $12k layoff payment? GONE
- Sick leave policy GONE
"You want the plane fixed, ... when"?
That'll work once.
Hello, contractors. :blink: :unsure:
You might want to get out your survival kit and do a contents check.
- Prepaid medical account GONE Wait with all the other creditors for payback from BR court.
- Sick leave bank GONE btw / Thanks for the loyalty, Mr. 1150 hours!
- Paid holidays GONE
- Paid vacation GONE
- Overhaul SPUN OFF and yes, a lot of line maint. too. Goodbye, CL2 stations.
- $12k layoff payment? GONE
- Sick leave policy GONE
"You want the plane fixed, ... when"?
That'll work once. Hello, contractors. :blink: :unsure:
You might want to get out your survival kit and do a contents check.
RevThruster
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I also wonder if LAN/TAM will now go with STAR, since AMR is Bankrupt and their future is shaky at best.
PhatSappy
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I'm wondering ... how many ways the banksters and BR court will collude to raid the $4.1 BILLION Mr. Horton thinks he will use to run the company...? :huh:
