Posted on 11/29/2011 12:24:54 PM PST by 2ndDivisionVet
FORT WORTH, Texas (AP) — American Airlines' parent company is seeking Chapter 11 bankruptcy protection as it seeks to unload massive debt built up by years of accelerating jet fuel prices and labor struggles.
The nation's third largest airline also said its CEO Gerard Arpey will step down. He's being replaced by Thomas Horton, currently the company's president....
(Excerpt) Read more at news.yahoo.com ...
How to solve union problem. Avoid strike, agree to anything, then declare chapter 11.
I read somewhere this morning that it was costs driven by the unions.
in 1999 we owned a ton of AA stock. I need a new car, so I sold like 600 shares and bought a Nissan Maxima in cash. Those were the days...good thing I didn’t hang on to the stock...car’s gone too! LOL!
in 1999 we owned a ton of AA stock. I need a new car, so I sold like 600 shares and bought a Nissan Maxima in cash. Those were the days...good thing I didn’t hang on to the stock...car’s gone too! LOL!
While there is a LOT of AMR history that has led to them going broke, there is a key line in the bankruptcy filing that needs to be repeated over and over, and if needed, beaten in to the skulls of today’s liberals.
“the key to profitability is a competitive cost structure”
DUH...
Why do so many on the left not understand this?
The have an old fleet and crappy customer service.
Frankly, with what is taking place in our airports today, I can’t see how any airline is staying in business.
This homeland insecurity thing is way out of control.
Watch for them to merge with either British Airways or US Air.
“Watch for them to merge with either British Airways or US Air.”
There is a guy in the desert named Doug Parker, who is likely thinking that exact same thing, at the moment.
Wonder if Branson would look at buying them?
even uber-liberal CNBC said/inferred this was caused by union greed earlier today...
“Wonder if Branson would look at buying them?”
Not without a complete overhaul of the non-US ownership rules...
I bet that AA will be using chapter 11 to either break or win big concessions from their unions.
You can bet the SCOPE clauses in the union contracts will be the FIRST thing that AMR gets rid of.
These have kept AMR uncompetitive for TWO DECADES now, and has strapped them with a huge fleet of unprofitable 50-passenger jets, for years.
Now they can go get a bunch of mid-range 70-100 pax jets, and turbo-props. Bombardier is probably licking their chops right now.
Without SCOPE, AMR might well have survived it all.
Did TSA fondle them going to the court house when they filed it?
Being a lay-person in aviation union terms....can you explain to me what SCOPE is?
I definitely have noticed that AA’s fleet is old.....older than its competitors. They still primarily fly the MD-80s, which are over 30 years old.
SCOPE covers what the airline can fly. Since the unions demand that those that fly bigger aircraft get paid more, they limit the types of planes that can be flown by the parent company.
For instance, AA’s SCOPE Clause has been, for two decades, that non-AA pilots couldn’t fly anything larger than 50 seats, because they feared regionals would take jobs from mainline pilots. That would make having AA-pay scale pilots flying smaller planes an unprofitable proposition.
It was amended in recent years to allow 70 seaters, but just a VERY FEW.
This was the major point of contention in many of the Airline Strikes of the Late 80’s/Early 90’s.
Now there is a company that won't be pushing those 99%ers around any more!...even if those 99%ers are American Airline workers.
More good news for Obama. He will now “bailout” AA like he did GM. Protect union contracts and bosses, dictate what kind of planes to fly, dictate what airports to fly to, and all the rest of “centrally planned” AA.
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