Is North Texas-based American Airlines in Permanent Decline ?

[skids929]

Originally Posted by EDS_

They have $4+ billion in cash right now. According to the aviation press US Air and AA would make a really bad fit.

Generally, companies that head into Chapter 11 with some cash and a long term plan that the court sees as viable are allowed to emerge with most of that cash. It will be interesting to see what AA's plan is:

1. Do they want to retrench and emerge smaller
2. Do they simply want to re-set union wages, no one can argue with a straight face that AA's unions haven't been out of line for years, and emerge much as they have been tracking otherwise - buy a bunch of new fuel efficient planes and make money on longer routes etc.
3. Do they look to acquire another airline
4. Do they look to be acquired

It now looks like not filing for Ch. 11 years ago - as the pilots and others began to lose touch with reality - was a mistake.

Another story of union labor ruining another legendary American company.

[JimBaker488]

Gerald Arpey, who retired as American Airlines CEO as part of its Chapter 11 announcement this morning, won't be out of work long.
Effective Thursday, he joins former Continental CEO Larry Kellner's Houston-based private equity firm as a partner. Emerald Creek Group LLC focuses on real estate deals.
Former American CEO joins firm of former Continental CEO - Houston Chronicle

[EDS_]

Originally Posted by skids929

Another story of union labor ruining another legendary American company.

You'd think these folks might read up on how Eastern Airlines pilots/ALPA flat out killed a once awesome airline and learn from it. Guess not.

[loves2read]

people never think THEIR actions are the reason that a company fails--or a Congress...

I read that one of the provisions that prevented the pilots' union from settling their last union agreement earliere with AA was the union wanted it mandated in the contract that the pilots would be GUARANTEED not to have a room next to an ice machine on layovers...
THAT was the type of "gimme" that the union was using as a barrier to reaching agreement--
and remember that when there are layovers--the crew is on company money--meals/room/travel--all per diem...
and I am not saying that is wrong or that AA should not pay since obviously the airline is the one that has put them in that situation--but to guarantee someone won't be next to an ICE MACHINE--

elements like that in the face of everything the company was fighting an uphill battle against makes me think of the line from the adage--"for want of a nail...."
In this case what was "wanting" was good sense on both parties--
Arpey was not a galvanizing leader like Kelleher or even Casey or Crandall
and the new guy -- Horton--watching him speak at his news conference yesterday was creepy--
his mouth looked totally black inside--maybe just my tv picture--but it looked almost supernaturally eerie...

[JimBaker488]

Spirit Airlines appears to be poking fun at the bankruptcy of American Airlines' parent AMR as Spirit promotes its just-announced new routes from Dallas/Fort Worth International.
Spirit on Tuesday announced it would fly to four new destinations from DFW, which is American Airlines' biggest hub and is just a short distance from AMR's headquarters.
RELATED: Spirit adds four new routes from Dallas/Fort Worth
To tout its new service, a Spirit press release noted $11 promotional fares on the upcoming routes to Atlanta, Boston, New York LaGuardia and Orlando. Spirit added the routes "marked a new chapter in Dallas/Fort Worth's (aviation) history."
So, where's the barb aimed at American?
Reporter Terry Maxon of The Dallas Morning News explains, writing:

Get it? If American had filed Chapter 7 papers, Spirit's customers could have saved $4.
Does Spirit promo mock American Airlines' bankruptcy? - USATODAY.com
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Seems like when you're down everybody takes advantage ? It's that kind of world.