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American Airlines Files for Bankruptcy Protection
Fox News ^ | November 29, 201 | Associated Press

Posted on 11/29/2011 4:56:06 AM PST by Skeez

FORT WORTH, Texas – American Airlines and American Eagle's parent companies are filing for bankruptcy protection. AMR Corp. and AMR Eagle Holding Corp. said Tuesday that they filed voluntary petitions to reorganize, saying it's in the best interest of the companies and its shareholders.

(Excerpt) Read more at foxnews.com ...


TOPICS: Culture/Society
KEYWORDS: airlines; americaairlines; bankruptcy; bhoeconomy; chapter11; economy

1 posted on 11/29/2011 4:56:12 AM PST by Skeez
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To: Skeez

American says labor-contract rules force it to spend at least $600 million more than other airlines

U N I O N S? I suppose in defense of unions, one should ask, will it all be better if they were to once and for all, disappear? How would workers “protect” themselves from evil corporations? Yes I could have put the obligatory /s, but the question is legit isn’t it. After all those on the left would ask.


2 posted on 11/29/2011 5:03:41 AM PST by wita
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To: wita

and just imagine how much worse it would have been had the messiah not force-fed us the “stimulus”....bwahahahahaa


3 posted on 11/29/2011 5:05:50 AM PST by raygunfan
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To: Skeez

Merry Christmas flyers. I’m on Southwest


4 posted on 11/29/2011 5:05:57 AM PST by reefdiver ("Let His day's be few And another takes His office")
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To: reefdiver

Aligiant


5 posted on 11/29/2011 5:07:49 AM PST by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: Beagle8U

Toyota :-)


6 posted on 11/29/2011 5:14:04 AM PST by mewzilla (Forget a third party. We need a second one.)
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To: wita

“How would workers “protect” themselves from evil corporations?”

If you don’t like the conditions or the pay, and think you’re better, quit and go work for someone else!

Maybe you will find out you’re not worth a shit and you can lie down in the street and die!


7 posted on 11/29/2011 5:14:27 AM PST by dalereed (uity wise!)
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To: wita
How would workers “protect” themselves from evil corporations?

They would quit and go to work somewhere else. No one has a right to stay at the same job for a lifetime -- made more pleasant by the force of government. I know, I know. Liberals wouldn't be satisfied with that answer.

So, stop trying to convince them. Unions are illegitimate organizations which infringe on the private property rights of citizens. If you don't want to go into business for yourself, you go to work for someone else. And you do what he wants or you leave. Period.

8 posted on 11/29/2011 5:19:16 AM PST by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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To: wita

After all those on the left would ask.

They will also note that the ceo made some 5 million, “earning” a 10-12% increase while his company flails away. Stuff like that is tough to defend but happens all to often.
[Look at wall street bonuses!]


9 posted on 11/29/2011 5:27:05 AM PST by Adder (Say NO to the O in 2 oh 12)
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To: Skeez

We will see more. TSA makes many not want to fly. I used to travel on business 15 - 20 times a year. I have gotten it down to 5 -7. Why? Its just too much trouble and takes too long and is just too much stress. My goal is 3 Max next year but a new job may force me to travel more.


10 posted on 11/29/2011 5:27:20 AM PST by Free_in_Alabama (The average citizen is too lazy to steal from you, instead they are asking the government to do it)
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To: Skeez

INFORMATION ABOUT AMERICAN’S CHAPTER 11 REORGANIZATION
http://www.aa.com/i18n/information/restructuring.jsp?anchorLocation=DirectURL&title=restructuring


11 posted on 11/29/2011 5:36:28 AM PST by nralife (www.fireholder.com)
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To: dalereed

“Maybe you will find out you’re not worth a shit and you can lie down in the street and die!”

Well put, my sentiments exactly. The union mentality to me is disgusting, never understood it, but there are plenty infected by it.


12 posted on 11/29/2011 5:36:42 AM PST by izzatzo ( Anybody but Obamney and Huntsman. Cain looks better and better.)
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To: Skeez

The dirty secret is, like other places that the Government meddles in (think Solyndra or GM-Chevy Volt), the propping up by the feds that has occurred distorts the underlying business enterprise.

In 1979, the Wright Amendment was enacted http://en.wikipedia.org/wiki/Wright_Amendment
which favored American Airlines in order that Representative Jim Wright of Fort Worth could get the new DFW Airport to become the central airport of the metroplex and limit growth at Dallas Love Airport.

It just happened that DFW was dominated by American and Dallas Love by Southwest, an upstart cheap carrier.

American, as seen by the bankrupcy news, could not compete in an honest workplace.

The Piper plays again in the saga of why the public sector should never intefer in the private sector.


13 posted on 11/29/2011 5:38:18 AM PST by bestintxas (Somewhere in Kenya, a Village is missing its Idiot.)
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To: izzatzo
"The union mentality to me is disgusting, never understood it, but there are plenty infected by it."

I agree. The unions had their place once upon a time. They have way outgrown their pants.
14 posted on 11/29/2011 5:40:38 AM PST by lahargis (Perry for Prez)
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To: Skeez

Something is wrong with the bankruptcy system: American Airlines’ current president becomes CEO and the airline continues to operate.


15 posted on 11/29/2011 5:47:47 AM PST by Stingray51
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To: dalereed

Maybe you will find out you’re not worth a shit and you can lie down in the street and die!

Now Dale, don’t try to hide your feelings, behind innocuous comments.


16 posted on 11/29/2011 5:51:17 AM PST by wita
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To: BfloGuy

“Unions are illegitimate organizations which infringe on the private property rights of citizens. If you don’t want to go into business for yourself, you go to work for someone else. And you do what he wants or you leave. Period”.

Somehow, with the passage of time, “workers rights” entered the picture and somehow replaced human rights and those enumerated in the Constitution of the United States of America.


17 posted on 11/29/2011 6:00:46 AM PST by wita
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To: Stingray51

EVERY other legacy carrier had declared bankruptcy in the past 10 years. AA had not and because of that they put themselves at a comptetitive disadvantage relative to DL, NW, UA, US, etc....So, the airline will continue to operate as normal, but some of the rules will get re-written probably. It baffles me that people keep putting money into the airline biz though....Never been much of a return...


18 posted on 11/29/2011 6:02:56 AM PST by BallparkBoys (RESIST WE MUCH! ....We must, and we will much, about that, be committed!)
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To: Skeez

America’s rules are becoming so onerous in so many ways, I am surprised that corporations haven’t started building highly defended enclaves in northern Mexico. Mexico would adore having a major airline hub that Americans would cross the border for, to fly internationally without all the hassle and expense.

For security, they could have a flat as a pancake, 5-mile exclusion zone around the airport. It would provide thousands of good paying jobs for Mexicans.


19 posted on 11/29/2011 6:19:13 AM PST by yefragetuwrabrumuy
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To: Skeez

The Texas-based AMR Corporation, the parent company of American Airlines and American Eagle, announced that the company and certain of its U.S.-based subsidiaries (including both carriers) today filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York, “in order to achieve a cost and debt structure that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience for its customers.”

CBS/AP

I was going to fly American Airlines to Chicago thank goodness I changed the date and will now fly British Airways thru Heath Row - Oh damn they are having a stike there on Wedneasday. Perilous times for travellers.


20 posted on 11/29/2011 6:19:45 AM PST by Cardhu
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To: Cardhu
I was going to fly American Airlines to Chicago thank goodness I changed the date and will now fly British Airways thru Heath Row - Oh damn they are having a stike there on Wedneasday. Perilous times for travellers.

You could always travel by passenger liner. I hear the White Star Line has this new ship that is ready for its maiden voyage.

21 posted on 11/29/2011 6:28:26 AM PST by crusty old prospector
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To: BallparkBoys

“It baffles me that people keep putting money into the airline biz though....Never been much of a return...”

Southwest for 30 years was one of the best return stocks.


22 posted on 11/29/2011 6:29:06 AM PST by woodbutcher1963
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To: Adder
They will also note that the ceo made some 5 million, “earning” a 10-12% increase while his company flails away. Stuff like that is tough to defend but happens all to often.

A good CEO and his or her staff--especially in some industries--have to face realities of the marketplace. Every sector has ups and downs, and although a good CEO can mitigate risks, sometimes market forces work against you.

Removing and managing high operating costs is something all companies have to do occasionally. Sometimes, this means not expanding your business by adding new products or services, doing less research, or holding back raises from employees. Sometimes, this means laying off employees.

Making a salary commensurate for performance and managing a company well, is something that CEOs should expect and receive. Just because they have to lay off employees doesn't mean they're not doing their jobs well.

23 posted on 11/29/2011 6:29:33 AM PST by Lou L (The Senate without a fillibuster is just a 100-member version of the House.)
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To: crusty old prospector
You could always travel by passenger liner. I hear the White Star Line has this new ship that is ready for its maiden voyage.

Been there done that - almost



One of my ships HMS Wave aground in St Ives in 1952. The next tide put us on the rocks

24 posted on 11/29/2011 6:53:02 AM PST by Cardhu
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To: wita

I was on a flight and overheard a Stewardess talking about the contract negotiations. AA wanted to stop pensions for new hires. The Union is against this and had obviously convinced this stewardess that AA had money. The only reason for the UNION not to take the offer was to protect the UNION, i.e., what good is a UNION if you don’t have a pension like the VAST majority of Americans? Now that the company is in bankruptcy the pension could be in trouble. Once again the UNIONS negotiating (or striking) for the Unions and not the members.


25 posted on 11/29/2011 7:05:40 AM PST by 11th Commandment (http://www.thirty-thousand.org/)
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To: wita

How would workers “protect” themselves from evil corporations?


1. Government regulation protects worker safety and other interests.
2. Government enforces laws against employers colluding against workers.
3. Undervalued employees can switch to a competitor of their employer, who will generally value them more accurately.
4. Workers in an abusive industry (implying collusion) can switch to a multitude of alternative industries (the days of the one-option company town are past - and people can always move to another town).
5. It is in corporations best interest to treat employees well, and enough corporations know this to influence the whole market.

Conclusion: Workers should be free to associate with others, and to collectively bargain with their employers, but employers should be free to hire and fire based on such associations and actions.


26 posted on 11/29/2011 7:27:47 AM PST by Atlas Sneezed (Author of BullionBible.com - Makes You a Precious Metal Expert, Guaranteed.)
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To: Stingray51

Something is wrong with the bankruptcy system: American Airlines’ current president becomes CEO and the airline continues to operate.


Uh, the point of this kind of bankruptcy is to keep the company operating.

I certainly hope they do, as I have two seats booked in first class for an international flight next spring, a half million AA miles on my account, and lifetime Gold Elite status.


27 posted on 11/29/2011 7:30:45 AM PST by Atlas Sneezed (Author of BullionBible.com - Makes You a Precious Metal Expert, Guaranteed.)
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To: woodbutcher1963

And sadly for the last 10 years Southwest has been dead money. I own a lot of SWA stock and its going no-where...


28 posted on 11/29/2011 7:46:10 AM PST by ncfool (The new USSA - United Socialist States of AmeriKa. Welcome to Obummers world or Obamaville USSA.)
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To: 11th Commandment; Beelzebubba; Stingray51; wita; Skeez; crusty old prospector
Just received this in my e-mail in Spain.

American Airlines $92 to Los Angeles, Vegas, Miami



That was really QUICK...

29 posted on 11/29/2011 7:47:28 AM PST by Cardhu
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To: Beelzebubba

SOCIALISM!


30 posted on 11/29/2011 7:48:42 AM PST by ncfool (The new USSA - United Socialist States of AmeriKa. Welcome to Obummers world or Obamaville USSA.)
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To: Skeez

The meme in the press will be high labor costs led to Americans demise when in reality it is management failure. Airlines like Southwest who respect their workers do well. American management refers to its workers as “cost units”.

What you will not read in any of the “in depth” articles on the bankruptcy filing is the fact that American Airlines for years had labor cost advantages over the competition and squandered it.

American Airlines initiated the B-scale. For years, all new pilots hired made half what senior pilots made. That cost advantage was squandered. Did that money go to the shareholders, lower the cost of flying to the public, or grow the airline? No, it went in the pockets of AA management as bonuses.

After 9/11 when every other airline was filing for bankruptcy, the AA pilot labor group took a 23% pay cut to keep AA out of bankruptcy. This was on top of up to a 22% decrease in pay due to schedule cuts. THIS ENTIRE PAY CUT WENT DIRECTLY INTO THE POCKETS OF MANAGEMENT AS BONUSES.

How many Americans would take a 45% pay cut on top of inflation eating away their earnings? Imagine how healthy the economy would be if every government worker had their pay cut by 45% or even 23%. If the GM workers had taken a similar cut, a bailout by taxpayers would have been unnecessary.

What did management do with this cost advantage? They took it as management bonuses. Google - American Airlines management bonus - and read all the stories. This airline was done in by the INCOMPETENCE AND GREED OF ITS MANAGERS.


31 posted on 11/29/2011 9:59:12 AM PST by anonsquared
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To: Skeez

Bye-bye contracts and those high salaries. I hope American’s pension plan is independently funded. If not, bye-bye pensions and Hello, Polaroid.


32 posted on 11/29/2011 10:24:10 AM PST by pabianice (")
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