Who wants a merger with US?

[wings396]

If they were losing money by the millions before, I'm hard pressed to believe that they are now making money. What's the point of any givebacks? The company has show they can make a profit as is, right?
I'm sure that AA is paying sky high prices for their fuel just like everyone else. I won't go along with you on this one without seeing some official numbers

 

[FWAAA]

If they were losing money by the millions before, I'm hard pressed to believe that they are now making money. What's the point of any givebacks? The company has show they can make a profit as is, right?

Nope. Read my post above (we were posting at the same time). Cash growing does not equal profits. AA isn't making money (in the profit sense). Cash balance is growing as I explained immediately above.

 

[mike7863]

ok as a x twa enployee let me say this. you dont want a merger, aa is in the same situation at twa was just with a little bit more money. look how it has turned out for the twa employees, it was good until times got bad. the same thing will happen to the aa employees if a merger would to happen.

 

[FWAAA]

I'm sure that AA is paying sky high prices for their fuel just like everyone else. I won't go along with you on this one without seeing some official numbers

You don't have to go along with me - the facts are easy to find. I mistakenly assumed that you were aware of the "official numbers" that are published with the bankruptcy court each month. Someone posting so authoritatively as you about the cash balance "dwindling" should review the facts. Here's a link to the most recent monthly operating report showing that AA's unrestricted cash balance grew by several hundred million dollars in Feb compared to January:

http://www.amrcaseinfo.com/pdflib/2071_15463.pdf

 

[wings396]

Thank you, I will check it out. If I'm wrong, I have no problem owning up.

 

[700UW]

I think a US combination would be the worst for AA employees as you'd end up giving three rounds of concesions-the RPA, bankruptcy, and a third time if the IAM prevails as the collective bargaining agent. The IAM will be giving extra concessions as gifts to the company.

Josh

You are truly ignorant, the IAM is the only union on the property at US that has a Defined Benefit Plan, and got gains in the transition agreements and not losses.

What is your hard on for the IAM at US?

Your not a US employee, never an IAM members and have no clue to what has transpired at US.

Prior to two chapter 11 filings the IAM had some of the best CBAs in the industry.

Your need to get some therapy, sounds like you have IAM/Union Envy.

And ALPA and the TWU have been taking concessions for years before the IAM, the TWU agreed to the first "B" scale in the industry, and have unlicensed OSMs in the hangars overhauling airplanes and are paid less than A&Ps.

The IAM members dont pay fund their retirement healthcare, unlike the TWU at AA.

It took three rounds of concessions in two bankruptcies and one CBA abrogation for the IAM to give concessions at US, can you say the same about 2003 at AA, where all the unions gave concessions outside of bankruptcy?

Once again, dont let the facts get in your way.

 

[700UW]

Agree 100%. US Air is a trAAshy airline, and despite it's flaws AA is much better.

Josh

Who is making a profit and who is losing billions and is in bankruptcy?

 

[Overspeed]

Read this yet?

US Airways Labor Pacts Could Hinder AMR Merger Effort

http://www.thestreet.com/story/11491540/1/us-airways-labor-pacts-could-hinder-amr-merger-effort.html

 

[FWAAA]

Read this yet?

US Airways Labor Pacts Could Hinder AMR Merger Effort

http://www.thestreet.com/story/11491540/1/us-airways-labor-pacts-could-hinder-amr-merger-effort.html

Not only do the US contracts contain snapbacks - but the APA also takes the position that adding new pilots thru purchase or merger or otherwise causes those new pilots to rise to the APA rates. Unless the APA contract is abrogated and AA imposes some different terms, it will be the same result as the purchase of Reno Air. AA moved slowly to raise the pay of the Reno pilots, arguing that as a subsidiary, it didn't have to increase their pay to APA rates - the APA disagreed and began their sickout.

Either way, the huge cost advantage enjoyed by US would disappear if AA and US combine. A merger will cause massive raises to be due the US pilots which would plunge the US side into losses.

That's what happens when you merge a low-wage airline (US) into a higher wage airline (AA).

 

[wings396]

You are truly ignorant, the IAM is the only union on the property at US that has a Defined Benefit Plan, and got gains in the transition agreements and not losses.

What is your hard on for the IAM at US?

Your not a US employee, never an IAM members and have no clue to what has transpired at US.

Prior to two chapter 11 filings the IAM had some of the best CBAs in the industry.

Your need to get some therapy, sounds like you have IAM/Union Envy.

And ALPA and the TWU have been taking concessions for years before the IAM, the TWU agreed to the first "B" scale in the industry, and have unlicensed OSMs in the hangars overhauling airplanes and are paid less than A&Ps.

The IAM members dont pay fund their retirement healthcare, unlike the TWU at AA.

It took three rounds of concessions in two bankruptcies and one CBA abrogation for the IAM to give concessions at US, can you say the same about 2003 at AA, where all the unions gave concessions outside of bankruptcy?

Once again, dont let the facts get in your way.

Maybe you are refering to the M/R side of the IAM CBA. The fleet side blows to be kind about it. Gave away profit sharing and snapvacks during the transition agreement.
They already informed us that the spectacular pension contribution is getting scaled back in 2014.

 

[737823]

Who is making a profit and who is losing billions and is in bankruptcy?

US is barely profitable and the reason they are is theyve slashed your pay, cut benefits, outsourced positions, and imposed work rules.

Josh

 

[Bob Owens]

AA is going to sell about $21 or $22 billion worth of tickets this year (plus about three billion of cargo and other revenue). As you know, not everyone shows up at the airport and buys a ticket for the next flight. Billions of dollars of AA's ticket sales are for advance purchase fares. In the early part of the year, vacationers buy tickets for spring and summer travel. That cash shows up in AA's bank account even though AA hasn't provided any service to them yet. Their flights don't depart for weeks or months in the future.

If ever.
I know I'd be reluctant to book on an airline thats in BK and looks like its headed towards the rocks with its labor groups. They may not liquidate but they may go on strike, legally or otherwise.

Bottom line: Cash balance can grow even though AA is losing money - just like before bankruptcy when cash would sometimes grow even though AA was losing money. Accounting losses for accrual basis taxpayers don't always equate to cash out the door. Individuals are usually cash-basis taxpayers and expenses generally match the cash out the door. Not always the case under the Generally Accepted Accounting Principles (GAAP).

In other words its GAAP smoke and mirrors.

 

[robbedagain]

if there were to be a merger I believe the AA folks given their high seniority over US employees would most likely be better off than a lot of us younger US folks. US has also stated repeatedly that their fees make more money than the pay cuts we have had for yrs. As for IAM we are the only group with a pension while the other dont have one atleastIve been told that by a shop steward. If there were to be a merger I would imagine the US mgmt team would probably be favored to run the airline but I also have my doubts about how that would be integrated given AA's history of dismantling other airline employees TWA comes to mind

 

[wings396]

Bob, I think that passengers have seen that while in bk airlines seem to be business as usual. One would think that it would cause some to book away, but in most cases it doesn't. I'm sure if this was one of the first airline bk's it would be different as they wouldn't know what to expect.

 

[737823]

If ever.
I know I'd be reluctant to book on an airline thats in BK and looks like its headed towards the rocks with its labor groups. They may not liquidate but they may go on strike, legally or otherwise.

So it appears you're threatening illegal job action.

In other words its GAAP smoke and mirrors.

Hardly, IFRS (accounting standards used outside the US) is very similar in terms of revenue and cash recognition. Suppose you prepay Comcast (or anyother service provider) for a year of internet service they don't recognize the revenue upon receipt of cash, rather when they fulfill the service. This situation is no different, people book flights weeks and months ahead and although AA has received payment they can't acknowledge the revenue and related expense.

Josh