When will AA Declare Bankruptcy?

[NewHampshire Black Bears]

When will AA declare bankruptcy ???????

"The Very next day -AFTER- I retire" !!!!!!!!!!!

Jeez, I never thought I'd be glad I was "OLD" enough to walk out the door with,
1. A monthly check
2. Retiree health benefits
and
3. Full flight bennys,
on (almost)"MY" timetable !!!!!!!!!!!!!!!!

NH/BB's

 

[NewHampshire Black Bears]

767jetz,
"IF" your 4/7/03 rumor is correct(and for what it's worth, it sounds fairly resonable to me), then if the "weak sister" TWU does'nt give our 3/1/03 raise away, then It's reasonable to assume that a lot of other TWU folks will be joining me on (approx.) 3/"2"/03, heading out the friggin' door, NEVER to look back !!!!!!!!!! "EVER" !!!!!!!!

NH/BB's

 

[767jetz]

Just a rumor here, but heard from a friend (furloghed TWA pilot), who heard from another friend (Former TWA now an AA Captain), who heard from the St. Louis Chief Pilot, that AA will be CH11 on April 7th.

Carty wants to enter with as much cash as possible to be competitive with US and UA.

Who Knows???????????????!!!!!!!!!!!!!!!!!!!!!!!

 

[Rob]

Bears, are you watching what is happening to US Airways pension plan? Living happily ever after isn't as assured as it once was.

 

[flyhigh]

...and yes, i've noticed nobody has any solutions to offer to really avoid any further deterioration of AA's cash position other than things like executive compensation, which again, is not a problem for any airline.

 

[iflyjetz]

[blockquote]
----------------
On 1/18/2003 11:08:20 AM 1AA wrote:

How do you figure CAL before AA???
----------------
[/blockquote]

In Dec's Flight Ops Leadership meeting at Delta, one of the speakers stated that CAL had "Just raised $200M secured
> > by spare parts. (they can't use them - they must keep a certain level of
> > inventory to keep the loan secure). Liquidity challenged. I.e.: nothing
> > else to borrow against.."

Basically, CAL is completely tapped out. AMR at least has additional assets that can be used as collateral. I've heard for quite a while that CAL was heavily leveraged, even before 9/11.
If this is, in fact, true, I'd expect CAL to declare chap 11 sometime in the first quarter. However, I don't think that AMR is too far behind in declaring chap 11; the purchase of TWA is proving to be an albatross around AMR's neck.

 

[flyhigh]

So let me get this straight, a guy not working right now (the furloughed pilot friend) heard from another pilot about AA bankruptcy plan. I assume it was from the flight where Carty sat in the cockpit and shot the breeze with the boys? Seriously...AA still has options. One thing being floated between Worldspan partners regarding a possilbe sale of the entity. There's a lot of value locked up in that entity alone that could air all partners (AA, DL, & NW). Maybe enough to make up for the entire purchase of TWA...

As for the arena, I've never heard it on tv news, during a game, or seen it in print as anything other than the American Airlines Arena in Dallas or Miami.

 

[flyhigh]

A couple points about CAL that your argument fails to recognize:
1)CAL maintains a 53% ownership stake in ExpressJet (dba. Continental Express). Given ExpressJet's recent profit, and the likelyhood of future profits, there's tremendous value in that entity that can be sold to increase liquidity. In reality, CAL is waiting to sell that at a higher level.

2)Chealsea catering. While the value of this entity is not tremendous, the severing of the costs associated with Chelsea, might be the greater benefit here.

Given these two assets, I'd estimate that CO has sufficient liquidity to continue to operate.

 

[767jetz]

[blockquote]
----------------
On 1/19/2003 2:59:12 AM flyhigh wrote:

So let me get this straight, a guy not working right now (the furloughed pilot friend) heard from another pilot about AA bankruptcy plan. I assume it was from the flight where Carty sat in the cockpit and shot the breeze with the boys?
----------------
[/blockquote]

I don't know aboput Carty being on the jumpseat. I'll ask.

Remember, I did say this was just a rumor. I thought I'd throw it in with all the other speculation going on here.

Just to clarify, the supposed CH11 by 04/07/03 started with the STL Chief Pilot, to an MD80 Captain, to my friend, to me. I'm not exactly claiming to be a reliable source.

Good Luck To All!

 

[WingNaPrayer]

Sounds reliable enough to me!

 

[AAmech]

[blockquote]
----------------
On 1/18/2003 11:12:05 AM 1AA wrote:

If American is serious then why not open or eliminate the contracts with the arena in Miami, Dallas and the theatre in New York? How many millions of dollars are being pumped into these non airline ventures? Why not concentrate on airline issues and start treating its most important asset (US) with respect instead of crying that all of a sudden we make too much money----------------
[/blockquote]

It would cost untold MILLIONS to terminate those deals. Especially with Dallas. The entire arena would have to be gutted to remove all the Eagle logos in the carpets, seats, walls ect, ect. Its hard to convince a lot of people of the value of advertising.

 

[will fix for food]

[blockquote]
----------------
On 1/19/2003 12:17:23 PM flyhigh wrote:

A couple points about CAL that your argument fails to recognize:
1)CAL maintains a 53% ownership stake in ExpressJet (dba. Continental Express). Given ExpressJet's recent profit, and the likelyhood of future profits, there's tremendous value in that entity that can be sold to increase liquidity. In reality, CAL is waiting to sell that at a higher level.

----------------
[/blockquote]

Why would you sell ExpressJet if it is making money? For the short term profit? If I were a shareholder I would be S------G a golden brick if that was proposed.

 

[RV4]

[BR]If "Cost is King" to the customer, they need give up some of that advertising.[BR][BR]Where is the Southwest Airlines arena?

 

[FA Mikey]

I think its short term survival, not short term profit.

 

[flyhigh]

The reason CO would sell express jet is because of the profit. The profit is driven by the contract written to spin it off. In the long term, COEX would become unprofitable had it stayed a part of CO...so part of it was spun off. The remainder will be spun off to generate cash for CO...at the right time of course.