The World's largest airline, American Airlines and it's parent AMR Corp. is currntly burning $5 million/day with little or no relief.
Industry Experts are now very nervous that it could ended up like it's rival UAL and Us Airways: entering bankruptcy court.
Unlike UAL, AMR's financial problem is very simple: Money takes from pax downs sharply, and the company unable to cut expenses fast enough to keep up.
...For the moment, the company's saving grace is the $2 billion in unrestricted cash it has on hand. But even chief executive Don Carty has repeatedly said that American, which lost a record $3.5 billion in 2002, is operating at a level that is "unsustainable."
Without combined savings of about $2 billion, or 25 percent a year, from its various labor groups, AMR "could be in bankruptcy by next winter, or even sooner," Neidl said...
AMR has been set up various of meetings with it's staff about the crisis. AMR's employee do not believe the airline has done much as it could without their help.
For instance, labor leaders remain unconvinced that the company followed through with a promise to shrink the size of management by 22 percent.
Another cruicial problem is whether employees agrees 3% salary raise this year.
There are only 2 "hopeful" scenario for AMR: either economy rebounds in 2003, or UAL collapses.
Besides the labour problem, War on Iraq is another focus. High fuel prices plus air travel declines could force UAL to collapse and sell its assets.
3rd problem is the low-cost carriers.
For full article (not in my own words):