Skip to comments.American Airlines Files for Bankruptcy Protection
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 ...
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.
and just imagine how much worse it would have been had the messiah not force-fed us the “stimulus”....bwahahahahaa
Merry Christmas flyers. I’m on Southwest
“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!
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.
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!]
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.
INFORMATION ABOUT AMERICANS CHAPTER 11 REORGANIZATION
“Maybe you will find out youre 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.
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.
Something is wrong with the bankruptcy system: American Airlines’ current president becomes CEO and the airline continues to operate.
Maybe you will find out youre 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.
“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.
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...
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.
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.”
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.
“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.
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.
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
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.
How would workers protect themselves from evil corporations?
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.
Something is wrong with the bankruptcy system: American Airlines current president becomes CEO and the airline continues to operate.
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.
And sadly for the last 10 years Southwest has been dead money. I own a lot of SWA stock and its going no-where...
American Airlines $92 to Los Angeles, Vegas, Miami
That was really QUICK...
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.
Bye-bye contracts and those high salaries. I hope American’s pension plan is independently funded. If not, bye-bye pensions and Hello, Polaroid.
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