OT: Another airline bites the dust… AMR files for Chapter 11

[briansd1]

flyer, it seems like the glory days of the airlines are past (probably started with Reagan’s firing of the air traffic controllers).

From a labor union standpoint, for decades the airlines provided good jobs and allowed many employees to reach middle to upper middle class status (even perhaps wealthy) — opportunities which would not have been otherwise available.

The young guys and gals starting in the industry will not enjoy the same opportunities as those who have retired or are now about to retire.

This latest bankruptcy is just a way for management to get concessions from the unions, especially the pilots.

[Coronita]

http://finance.yahoo.com/news/amr-american-airlines-file-bankruptcy-121926586.html;_ylt=Amr8ADFR6Pr3bWRA5Slw72uiuYdG;_ylu=X3oDMTQzc2gwZGFvBG1pdANGaW5hbmNlIEZQIEp1bWJvdHJvbiBMaXRlBHBrZwMwNDMyZTg2MS0zZGRmLTM3YjMtYmJhMi01NGQ5Mzg1NTVhM2QEcG9zAzEEc2VjA2p1bWJvdHJvbgR2ZXIDOTRlY2RjNDAtMWE4Yy0xMWUxLWIyN2YtOTc3ZjMzZjg3NWZk;_ylg=X3oDMTFvdnRqYzJoBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3

AMR, American Airlines file for bankruptcy

(Reuters) – American Airlines and its parent company AMR Corp filed for bankruptcy protection on Tuesday after failing to win a deal with pilots earlier this month to pare its labor costs.

AMR had been the only major U.S. carrier to avoid bankruptcy proceedings in the past decade, a move its rivals had used to restructure their labor agreements and cut costs.

[Hobie]

.35 now. How much did you buy today flu? 😉

[flyer]

Sad, but not unexpected. Many saw this coming, based on labor costs and fuel alone. Lots of our friends who were with AMR cashed out in anticipation of this day, and have no regrets.

Seems like a merger might be a consideration, but only time will tell.

Although we were with another airline, my wife and I are very glad to be out of that game,and enjoying life with our family.

[Coronita]

[quote=Hobie].35 now. How much did you buy today flu? ;)[/quote]

you laugh… It’s $1 today….If only I DIDN’T read your post and didn’t think that would have been stupid that day. 🙂

[Hobie]

I know, I know! I was actually serious about buying but I chickened out. Next time I will go with my gut feeling.

[briansd1]

A merger of USAirways and American Airlines would be good for passengers.

There will be more choices of routes for passengers who belong to the two mileage programs.

[pfflyer]

A merger between AA and US would be a nightmare. The hubs and routes don’t fit well together. The labor issues between America West/ US Air/ TWA and American would erupt like a volcano. I believe AA went in with $4BILLION to control their destiny. They will emerge with cheap and efficient labor, new fuel efficient jets, new stock, and record profits. A transfer of wealth will have occurred……

[briansd1]

I hear you, pfflyer. Operationally it could be a nightmare.

I know people who work at USAirways where there still unresolved issues and lawsuits involving East and West labor contracts.

However it seems like Wall Street likes the management at USAirways and they might want to push that upon American.

[Coronita]

[quote=briansd1]A merger of USAirways and American Airlines would be good for passengers.

There will be more choices of routes for passengers who belong to the two mileage programs.[/quote]

I don’t think so… I’m actually against the ATT/ TMobile merger because with less carriers, I think there would be less competition.

Same would be said for airlines imho.

Imho though, I don’t think AMR will get acquired. They seem to have a decent cash position. Probably are doing this to get out of their retirement obligations.

AMR use to be one of my favorite airlines. My how times have changed.

[pfflyer]

I agree that there will be pressure to merge. In reality it appears we are heading towards an era similar to deregulation where there were only a few major carriers. It would reduce seats allowing prices to rise and ensure company profitability. But make no mistake the golden era of aviation is looooooong gone…….

[Author]

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