American Airlines headed for bankruptcy?

[marmar]

WASHINGTON (MarketWatch) -- Shares of American Airlines parent AMR Corp. AMR declined sharply Monday to their lowest level in more than two years on renewed concerns that the troubled carrier was about to file for bankruptcy. More than 200 pilots have retired from the Ft. Worth, Texas-based carrier in the last two months, compared with a typical monthly dozen, according to media reports. Pilots who retired last week were able to cash in company stock at its Aug. 1 price, which was 28% above Friday's closing price. "We are in a down market today, but the exceptional number of American pilots retiring is a sign that they want to protect their pensions and get out before a possible filing further (depresses) the stock price," said Ray Neidl, an analyst with Maxim Group LLC. "I still believe that AMR management wants to avoid filing." No one from AMR or the Airline Pilots Association was available to comment. Shares of AMR fell nearly 18% to $2.42.


http://www.marketwatch.com/story/amr-shares-dip-18-on-new-bankruptcy-concerns-2011-10-03

[rsmith6621]

1. Airline CEO's Use BK...

...to strip employees of their retirement savings..I worked at UAL 2003-2005 and they did the same thing.

[spartan61]

3. The management "talent" threatened bankruptcy in 2003

unless the employees took large concessions. The FAs took a 30% cut in pay along with work rules, etc. and are still at that same level. Amazing how the mgt "talent" made sure to give themselves big bonuses each year with absolutely no snapbacks for employees. All three major unions at AA are in (and have been for a couple of years) negotiations. Needless to say, there isn't much love lost between the unions and mgt.

[FarCenter]

2. All the other major airlines have already been through bankruptcy Chapter 11

So American is at a big disadvantage.

[msongs]

4. top management should only be paid using stock in the company and no cash or benefits nt

[Turbineguy]

5. Could just be the stock manipulation du jour

On Friday it was Kodak. Today American Airlines. Tomorrow ???.

[cpamomfromtexas]

6. It's a management ploy, but swinging out of control

The "Management" has several thousand (no joke) managers more than necessary, but they haven't reduced their numbers any.

Mark my words, if the truth were told, and it might be someday, the top 6 layers of management should be doing the perp walk- especially when it is calculated how much deferred maintenance "savings" were pocketed by management.

This company, as many others, has been treated like the proverbial cookie jar for wayward punk management.

Watch it, it will be "the pilot's fault"---that's what they always say.

The pilots have been at half wages (on average) for going on 8 years. I know, I'm married to one. He hasn't gotten an hourly raise for over 20 years! Oh and if an airplane is broken, and the flight doesn't go, we might not make the mortgage that month. Divorces, bankruptcies and suicides are off the charts for them.

My husband and I say "fuck it", we'll go do something else. People with their talent can do something else and be home every night. Oh, and by the way, they won't have to deal with being felt up by the TSA while in uniform or with bomb threats on their airplanes either.

If Obama is truly on the side of workers, he would have dumped the RLA (railway labor act), it is so skewed toward management and allows much criminal behavior (not an exaggeration) to be hidden away from scrutiny. And yes, I could prove it, over 20,000 pages of two client's documents are in my house. It has allowed AMR to drag their heels and not negotiate in good faith.

The RLA doesn't allow unions to walk off when their contracts expire. The contracts simply become amendable and allows people to suffer while management drags their heels. Going on 5 1/2 years in negotiations for the pilots and the NMB (national mediation board), won't release them to self-help.

And yes, I've begged my husband to run for office. He says he would go to jail for the pilots of AA.