Is AA heading for Chapter 11 bankruptcy?

[drron]

Strong rumours that AA and their pilots may be about to settle their differences.
Deal may be near between American Airlines, its pilot union | Airline Biz Blog | dallasnews.com

 

[NM]

Okay. Is it time to use up the AAdvantage miles?

I consider my QFF points at higher risk tham my AA miles.

 

[reductionist]

Anyone have any theories on what will happen to the partnership with QF (if anything) if the bankruptcy does eventuate?

Business as usual?

 

[serfty]

Anyone have any theories on what will happen to the partnership with QF (if anything) if the bankruptcy does eventuate?

Business as usual?

With Ch 11 there should be no real change as far as QF/oneworld go.

 

[drron]

Anyone have any theories on what will happen to the partnership with QF (if anything) if the bankruptcy does eventuate?

Business as usual?

Absolutely.

 

[straitman]

Trading in American Airlines parent AMR halted again

Trading in American Airlines parent AMR halted again

By Charisse Jones, USA TODAY


Trading in shares of American Airlines was temporarily halted on Monday for the second time this month.

The halt, triggered automatically when the share price of American parent company AMR fell dramatically, came after the airline and its pilots union failed over the weekend to agree on a new contact.

Trading also paused on Oct. 3 when the price fell amid speculation about the airline possibly restructuring under bankruptcy protection. AMR said that wasn't what the airline intended or wanted to do.

The volatility points up concerns about the airline's future.

"I think there's just a lot of concern about what's going to be the fate of the company," said airline analyst Basili Alukos of investment research firm Morningstar. "The thinking is if there is no deal (with pilots), that increases the likelihood it is going to look at bankruptcy or some other means to renegotiate those contracts."

 

[openseat]

The pilots will really lose out if it ends in bankruptcy. It may well be the only way AA can restructure successfully.

 

[drron]

Though to be fair a week after the shares dropped in early October they had regained all that loss.

 

[cove]

Will American Airlines File Bankruptcy?

Tonight I looked at American Airlines share price and noticed the whole company is now valued at around 2 big planes at just over 600 million $USD.
Fifteen per cent of the company has been short sold which means the seller has sold first and is hoping to buy the shares back at a lower price a bit later to complete the trade.
AMR shares are currenly a shadow of their former self at around $1.91 and it looks like they may need to file for a bankruptcy re-organization to fix some of their cost structures and pay rates.
American Airlines will keep flying even if they file to re-organize their business but it is an example of how tough the airline business is if you cannot be competitive with your cost structure.

 

[elbarto]

Yes. They're hoarding cash at the moment to get them through chapter 11 protection.


Sent from an Apple wireless device

 

[UP4014]

Perhaps Alan Joyce could relocate and help them.

 

[Duffa]

Oh dear. It would seem so according to the email I received this am reassuring me that my points would be safe. To fly on what? Memories of Ansett loom large.

 

[cove]

Currently that means you will be flying on their older planes but you will still be flying so it is not Ansett.
Last night the stock market valued AMR at about $100 million as the shares continue to trade so if anyone has a spare amount of back pocket money you could become an owner of the number 3 airline in America.

 

[serfty]

Unlike Korda-Mentha with Ansett, AA are "doing it themselves" and will continue to operate.

AMR and American Airlines File for Chapter 11 Reorganization to Achieve Industry Competitiveness - Nov 29, 2011

AA are basically doing it themselves and will operate as normal. The main group of people to be affected are employees and some creditors.

This post summarises that nicely:

Originally Posted by TWA Fan 1
There may be changes obvious to the customer, but, judging from previous Ch 11 filings of the other legacies, they are highly unlikely to be a direct result of the filing.

Creditors and employees will suffer, that is definite, but, if anything, AMR and AA will not only vigilantly protect all products and services to customers, but as soon as their debt burden and operating costs are lowered, they will entice customers by making products and services more appealing.

Although creditors and employees will suffer in the short term, AMR's ability to align its debt and operating costs with its competition ought to result in a better airline that will ultimately benefit everyone, including creditors and employees, not to mention customers.

 

[serfty]

The speculation is over!

Please continue discussion here:

• http://www.australianfrequentflyer....parent-company-amr-corp-34784.html#post523150