AA parent company AMR Corp files for Ch. 11 Bankruptcy

[Blackadder]

American Airlines to cut 13,000 workers - Handling Hard Times : The Orange County Register

 

[serfty]

This letter was sent to all AA employers:

.
​

• Change - A necessity, not a choice

 

[TonyHancock]

American Airlines announces 13,000 job cuts

Following AMR going into chapter 11 I suppose cost reductions had to come.

BBC News - American Airlines announces 13,000 job cuts

American Airlines announces 13,000 job cuts

 

[drron]

An interview with Tom horton,CEO,gives a lot more info-
http://aviationblog.dallasnews.com/archives/2012/02/horton-answers-questions-about.html

 

[cove]

AAMRQ shares have ranged between 20 cents and 72 cents since they filed for Chapter 11.
Shooda bought them earlier when they were cheap for a quick turn.
You can look them up on Bloomberg.com but this is no recommendation.

 

[drron]

And an updated list of planes that AA intends to keep,may keep and definitely get rid of-Sorry but the tables wont stick when copied so go to the blog below
For a list of the aircraft it is here-
Our latest count on American Airlines airplanes | Airline Biz Blog | dallasnews.com

 

[drron]

And some tongue in cheek accounts of the bankruptcy-
Message to American Airlines Flight Attendants About Restucturing - YouTube
Be sure to read the captions.
And this-
Aluminum Lady - YouTube

 

[Danger]

American agrees with unsecured creditors to consider a merger | ATWOnline

 

[kamchatsky]

American agrees with unsecured creditors to consider a merger | ATWOnline

Load up US Airways miles with 100% bonus now!

 

[serfty]

American agrees with unsecured creditors to consider a merger | ATWOnline

Meh ... they have to consider a merger as part of the CH11 process but to quote Horton: (AMR’s Horton Willing to Weigh Acquisitions After Bankruptcy Exit - Businessweek)

AMR’s Horton Willing to Weigh Acquisitions After Bankruptcy Exit
February 07, 2012, 12:59 PM EST

By Mary Schlangenstein
Feb. 6 (Bloomberg) -- AMR Corp.’s American Airlines, whose bankruptcy made it a possible takeover target, may try to buy a rival after leaving Chapter 11 as the U.S. industry shrinks, Chief Executive Officer Tom Horton said.
“It’s not hard to envision how we could be a force in the industry and, potentially, a consolidator,” Horton said in a Feb. 3 interview at Bloomberg’s New York headquarters. “I don’t think we need to combine with anybody, but I think there will be ample opportunities to.

Horton has said numerous times since they filed for chapter 11 that any discussions of mergers/consolidations would ONLY take place after the company emerges from chapter 11. He never said he was against consolidation.

The lead counsel for the UCC (creditors committee) said yesterday, the protocol agreement is an acknowledgment by all parties to consider all viable alternatives - that is they are exercising their fiduciary responsibilities in the chapter 11 process.

As from the article quoted:

"The actions contemplated by the agreement include developing potential consolidation scenarios, but the agreement is not an indication that the company intends to pursue a transaction of any kind,” AA said in a statement.

 

[drron]

And here is the Unsecured Creditors committee release-it still thinks a stand alone AA is the best result on emerging from bankruptcy-
Jack Butler, attorney for the unsecured creditors committee, gave this statement after AMR announced that it and the UCC have agreed to explore potential consolidatoin:

"Much has been said in AMR's chapter 11 cases and in media reports regarding consolidation matters and potential strategic alternatives, including the role of the Official Committee of Unsecured Creditors in such a process. "The Committee believes that its consideration of all reasonable and viable strategic alternatives is a core responsibility under its statutory mandate, and indeed the Debtors have acknowledged the Committee's role in this process.
"But as the Committee earlier noted in hearings before the Bankruptcy Court, the Committee supports the Debtors' business judgment in pursuing a robust, stand-alone business plan on a path that could lead to an early emergence and against which strategic alternatives can be vetted before any reorganization plan is formulated or prosecuted.
"The important point is that both the Debtors and the Committee are in alignment that it is incumbent on them to explore strategic alternatives on a collaborative basis as part of this chapter 11 case. As evidence of this alignment, the Debtors and the Committee

UCC attorney: We support AMR's plan, even as we consider alternatives | Airline Biz Blog | dallasnews.com


​

 

[codash1099]

The wheels grind on:

American to begin evaluating merger options after labour ruling

 

[drron]

Well seeing the ruling has not been handed down this report makes no sense.AMR has come to agreement with the majority of TWU members and the pilots are putting the last offer to the vote.If only the flight attendants are still holding out I dont think they have much hope of a ruling in their favour.

And I found the article I was looking for-hope the AA unions read this-
http://www.swelblog.com/articles/us-airways-and-american-and-the-elephants-in-the-room.html

 

[drron]

The CEO of AMR has now said AA will consider merger proposals soon though he does say that they will be looking at taking over another airline.
American Airlines, creditors ready to begin looking at mergers, other

 

[serfty]

This is part of the CH 11 process - i.e. look at all options.

I get the impression it's more of a cross the t's and dot the i's type of process than a serious look at merging.

Some good reading on FT: US Airways & AMR / AA Takeover Rumors and Discussion (consolidated) - Page 86 - FlyerTalk Forums

 

[serfty]

"AMR posts record revenue in Q2"

AMR Corporation Reports Second Quarter 2012 Results - Jul 18, 2012:

AMR Corporation Reports Second Quarter 2012 Results

$6.5 Billion in Quarterly Revenue, Highest in Company History

Net Profit of $95 Million, Excluding Reorganization and Special Items, a $381 Million Improvement Over a Year Ago

Net Loss of $241 Million; Operating Income of $142 Million


FORT WORTH, Texas, July 18, 2012 /PRNewswire/ -- AMR Corporation, the parent company of American Airlines, Inc., today reported second quarter revenue of $6.5 billion, an increase of 5.5 percent year-over-year and the highest quarterly revenue in company history.

http://www.forbes.com/sites/tedreed/...rtner=yahootix

http://www.bloomberg.com/news/2012-0...tml?cmpid=yhoo


Whith the operating profits, it's a good result along with the strong revenue growth. (Of course the lawyers fees are significant )

When those MD80 and E135 depart and AA finally get their contracts approved then the results should be substantially better.

It's an awkward position for the flight attendants and others so obsessed in a merger now with first profit in Q2 since 2007.

 

[Danger]

Re: "AMR posts record revenue in Q2"

American earns $135 million net profit for July | ATWOnline

 

[QF WP]

Woo hoo, perhaps there will be no merger and AA will re-emerge ...

Am I being a tad too positive

 

[drron]

The judge in the bankruptcy court allows AA to rescind pilots contract-
Judge lets American Airlines toss out its pilots contract | Airline Biz Blog

And AA has all FAs on furlough back in harnes meaning they may be able to have new hires.Maybe some younger faces on AA in the future?
:shock:
American Airlines to recall last of its furloughed flight attendants | Airline Biz Blog

 

[serfty]

AA unit revenue up 4% in Septermber (would have been 4.4% if not for "challenges")

If not for the issues like the unofficial Pilot IA, unit revenue would have increased by 4.4% in September.

AA announced this morning that its unit revenue increased by a 4.0% last month compared to Sept 2011. That was better the numbers posted by DL, UA, and US already . Unit revenue at DL was up just a half a percent, at UA it was down 3.3% and was flat at US.

• AMR Corporation Reports September 2012 Revenue And Traffic Results - Yahoo! Finance
• AMR Unit Revenue Leads Industry, Thanks to International - TheStreet
• American Airlines: Key revenue number rises - Yahoo! Finance
• UPDATE 3-American Air Sept. revenue up despite fewer passengers | Reuters