American Airlines Parent Files for Bankruptcy

[admin]

The AMR Corporation, the parent company of American Airlines, said on Tuesday that it had filed for bankruptcy protection in an effort to reduce labor costs and shed a heavy debt burden: http://dealbook.nytimes.com/2011/11/29/ ... ankruptcy/

[Pipeline]

Union labor may be this, and other country's undoing. Unions had their place, in another long ago era. It is time to sweep them under the rug.

[Uther]

In the case of AA, you can't solely blame unions. Sure, no arguments that they contributed greatly, but AA had a crappy culture, their cabin crew were generally sucky and infused with that "big corporation" culture and attitude. And they were top of the class for nickel-and-diming their passengers to death. I think it is finally a merciful thing to do. Unfortunately, the same guys are still going to be at the helm - and that means they are not going to change in any fundamental way. I'd rather they go the way of Pan-Am and then in 20 years or so we all don't have to watch the TV series. I for one am not going to cry. I still recall how, just for one example, they drove Legend Airlines out of business with legal suits before Legend even flew one single flight.

And really, I know what I am talking about. I had racked up more than 300k airmiles on American. I'll never fly them again, unless they are the only option.

[JKTex]

Actually, Arpey is already out. But Horton has been around the block with a few big companies besides AMR and American so only time will tell.

[Common Sense Al]

I was wondering how a company that loses money every quarter* can stay in business.

Another bad stock buy I made years ago.

*With rare exception

Here's a good article:

For American, a blemish on a distinguished history

Though once an innovative airline, they started going backwards in various ways in the last decade. I think their newest 'innovations' were mostly about how to squeeze more money from passengers by nickel & diming them.

[JKTex]

AMR has made a lot of traders a lot of money. I've made money on them but have stay away for quite some time; I think my "gut" is finally getting it right.

Today there was a lot of $$ made. That 20 cent swing since yesterday and almost 150 million shares was very productive for the big players.

[admin]

26-year union AA pilot from Argyle debates bankruptcy situation with Rush Limbaugh: http://www.rushlimbaugh.com/daily/2011/ ... ines_pilot

[admin]

More competition at DFW!

JetBlue To Add DFW Airport Flights In May

[Brian]

Continental went through this in the 90's. Before that, they were a really terrible airline to fly, and living in Houston, I was forced to fly them. They are now one of the better airlines. I would imagine AA will go through this same cycle and look forward to a better airline.

[Common Sense Al]

Unbelievable... AMR lost over $900 million in December alone???

UPDATE: Just read that AMR has lost more than $11 billion since 2001.

[admin]

American Airlines to cut 13,000 jobs

[Brian]

The pension and union model just does not work....especially in a tight economy.

[Uther]

The pension and union model just does not work....especially in a tight economy.

Pity that so many American companies didn't figure it out in the '60s, the 70s and even well into the 80s and 90s.


What is a model of probity becomes a fallacy for a future generation. No cart can carry all luggage.

[Common Sense Al]

Pity that so many American companies didn't figure it out in the '60s, the 70s and even well into the 80s and 90s.

I think the problem is that it's a "we'll promise it now and figure out the solution later" type of deal... the same crap the gov't pulls, and now it's time to figure it out, but they can't figure it out or there is no solution.

When one company starts making such promises that they really have no idea of whether they can keep, other companies feel 'forced' to make the same promises to be competitive and attract good employees.

Very similar to politics... make a bunch of promises to get elected, then try to figure it out later or kick the can down the road to someone else.

[admin]

US Airways files with SEC for potential takeover of American