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aa777flyer
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AA To File CH11?

Tue Oct 04, 2005 9:02 am

I have spoken to several friends still at AA over the past few days and the strong rumor is AA will file CH11 before the 10/17 deadline. AA does have strong cash position, but the filing will be for competitive reasons. AA will also shrink about 10% and cut wages by around 10% as well.
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mrstl
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RE: AA To File CH11?

Tue Oct 04, 2005 9:12 am

Why couldn't they achieve the same cost savings out of bankruptcy?? If I was a creditor I would be very willing to negotiate considering the industry's current state. As for the employees I can only hope that one day they will reap the benefits of the cost savings- of all carriers those employees at American stand the strongest chance IMHO.
 
commavia
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RE: AA To File CH11?

Tue Oct 04, 2005 9:18 am

Quoting Aa777flyer (Thread starter):
I have spoken to several friends still at AA over the past few days and the strong rumor is AA will file CH11 before the 10/17 deadline.

Not going to happen. Not only is AA's management truly, deeply, committed to not putting AA in bankruptcy, but I truly think that AA's unions are going to get the picture. They see that even though they may be disgruntled and pissed, they have -- in the scheme of things -- done generally quite well relative to counterparts at other airlines.

Quoting Aa777flyer (Thread starter):
AA does have strong cash position, but the filing will be for competitive reasons. AA will also shrink about 10% and cut wages by around 10% as well.

The cash position is the key. I highly doubt that AA is going to file for bankruptcy with $3.6B in cash. They'd end up wasting most of it in bankruptcy, as it would get disbursed to creditors. As for the 10% shrinkage -- maybe domestic, but not overall. AA has actually been increasing capacity lately, but it's because they have been steadily shifting more and more flying to longer flights. As to the 10% wage cuts -- I'd expect those to happen anyway -- they're inevitable -- with or without bankruptcy.
 
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jfklganyc
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RE: AA To File CH11?

Tue Oct 04, 2005 9:20 am

This is a Bullsh*t thread and should be deleted. There is no basis for this statement!

AA is nowhere near bankruptcy . . . and there are NO repeat NO rumors in the ranks that would even come close to suggesting that.

PJ
 
ikramerica
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RE: AA To File CH11?

Tue Oct 04, 2005 9:26 am

My friend said that CO is going to file for super-extra-unbankruptcy! He heard it from a vagrant in downtown Houston. It will come with a big 747Adv order!  Wink
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aa777flyer
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RE: AA To File CH11?

Tue Oct 04, 2005 9:29 am

The truth of the matter is that with fuel prices so high, it could put a serious pressure on AA to file sometime in 2006 (mid), and with the laws changing it may be more beneficial for AA to file sooner than later. That would be the basis of an expedited filing.
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FlyPNS1
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RE: AA To File CH11?

Tue Oct 04, 2005 9:31 am

Quoting Aa777flyer (Thread starter):
AA does have strong cash position, but the filing will be for competitive reasons.

You can't file BK simply for "competitive" reasons. AA has plenty of cash on hand and has enough cash to fulfill all of its obligations at this time. If AA filed BK, they'd get sued big time by shareholders and probably the unions too.
 
klkla
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RE: AA To File CH11?

Tue Oct 04, 2005 9:32 am

Quoting Aa777flyer (Thread starter):
I have spoken to several friends still at AA over the past few days and the strong rumor is AA will file CH11 before the 10/17 deadline. AA does have strong cash position, but the filing will be for competitive reasons. AA will also shrink about 10% and cut wages by around 10% as well.

I would be surprised if they did at this point. If they did it would be for strategic reasons, not because they're near the point of collapse as Delta, Northwest, USAir and United were when they filed.

Their only real reason for filing would be to dump their pensions. If Delta and Northwest are successful in their efforts to dump their pensions it would place American (and Continental) at a serious cost disdavantage.

IMHO Continental is more likely to file BK before American because their cash situtation is much more of a problem.
 
N908AW
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RE: AA To File CH11?

Tue Oct 04, 2005 9:34 am

AA has a lot of pride. I'm thinking they know well enough that Chapter 11 isn't all it's cracked up to be.
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commavia
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RE: AA To File CH11?

Tue Oct 04, 2005 9:38 am

Quoting N908AW (Reply 8):
I'm thinking they know well enough that Chapter 11 isn't all it's cracked up to be.

Exactly.

AA777flyer -- don't believe all you read in the 'conventional wisdom media.' Chapter 11 is way overrated.
 
aa777flyer
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RE: AA To File CH11?

Tue Oct 04, 2005 9:41 am

Like I said it was a rumour. I really hope it is just "Cockpit Chatter" and not true. AA is a GREAAT airline with a VERY proud legacy, it would be a VERY sad day to see it in CH11.
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ikramerica
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RE: AA To File CH11?

Tue Oct 04, 2005 9:42 am

Quoting Klkla (Reply 7):
IMHO Continental is more likely to file BK before American because their cash situtation is much more of a problem.

And CO is not exactly itching to go there a third time in 15 years, especially since condemning other airlines for doing it.
Of all the things to worry about... the Wookie has no pants.
 
7e72004
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RE: AA To File CH11?

Tue Oct 04, 2005 9:45 am

Like stated before, you can't file for bankruptcy just to be more competitive. Your assets have to be less than your liabilities.
The next generation of aircraft is just around the corner!
 
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flashmeister
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RE: AA To File CH11?

Tue Oct 04, 2005 10:09 am

AA has a lot of pride.
Last I saw, there wasn't a spot for pride on a balance sheet.

The cash position is the key. I highly doubt that AA is going to file for bankruptcy with $3.6B in cash.
Oh? Northwest entered with $1.7B in cash. If you examine relative size as compared by ASMs, the equivalent cash level for an airline of AA's size is about $3.2 billion (based on fiscal year-to-date traffic as of the end of the second quarter: NW had roughly 46.5B ASM year-to-date, AA had roughly 87.9B).

AA has to buy more fuel, pay more rent, and fund more pensions than NW does... enough to support 80% more capacity than NW. Therefore, the cash level at which it becomes sensible for AA to file is much higher than it is for NW.

Like stated before, you can't file for bankruptcy just to be more competitive. Your assets have to be less than your liabilities.
The measure isn't purely total assets vs. total liabilities. Now, I'm not a lawyer, but as far as I've read, the measure is available current assets (e.g. cash and negotiable instruments) vs. current liabilities. Part of the current liability measure is the "background noise" of keeping the lights on, the tanks full, and the people paid.

So, when you add a pension payment on top of that (which come due quarterly, I believe), it's not at all difficult to show insolvency. In the long term, if AA is going up against DL, NW, US+HP, and UA, all who have shed their pension obligations, plus B6, WN, F9, FL, who use defined-contribution plans (meaning no pension mess), AA is at a critical competitive disadvantage, and they know it.

So, pride? What's worse? A quick trip through Chapter 11 to get on the same playing field as your peers? Or eternally higher costs (translated to lower profits) in the long term?
 
7e72004
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RE: AA To File CH11?

Tue Oct 04, 2005 10:12 am

You also have to figure in the creditors...i think many creditors would want to salvage the airline before any bankruptcy because if AA goes into bankruptcy then the creditors know they are going to get next to nothing.
The next generation of aircraft is just around the corner!
 
jc2354
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RE: AA To File CH11?

Tue Oct 04, 2005 10:13 am

Quoting JFKLGANYC (Reply 3):
This is a Bullsh*t thread and should be deleted. There is no basis for this statement!

Why should it be deleted? It is an interesting discussion.
If not now, then when?
 
greasespot
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RE: AA To File CH11?

Tue Oct 04, 2005 10:15 am

I guess we will find out in 16 days...

GS
Sometimes all you can do is look them in the eye and ask " how much did your mom drink when she was pregnant with you?"
 
7e72004
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RE: AA To File CH11?

Tue Oct 04, 2005 10:15 am

JFKLGANYC simply made an immature comment...if he thinks it is a "bullsh*t thread" then he should not read it. it is very simple.
The next generation of aircraft is just around the corner!
 
N908AW
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RE: AA To File CH11?

Tue Oct 04, 2005 10:18 am

Quoting Flashmeister (Reply 13):
Oh? Northwest entered with $1.7B in cash. If you examine relative size as compared by ASMs, the equivalent cash level for an airline of AA's size is about $3.2 billion (based on fiscal year-to-date traffic as of the end of the second quarter: NW had roughly 46.5B ASM year-to-date, AA had roughly 87.9B).

You forgot the more important factor which doesn't quite match up ratio-wise. NW lost $225 million in Q2. AA gained $52 million.
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ckfred
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RE: AA To File CH11?

Tue Oct 04, 2005 12:27 pm

Chapter 11 is not cheap. A debtor has to pay lawyers, consultants, other experts, etc. Between AA's cash position and its improved relationships with its unions, it doesn't need to file.

Whether it will file in the future depends on a number of issues, including the price of jet fuel, whether NW and/or DL drop their pension plans, how aggressive DL and NW are in terms of fare sales, etc.

If jet fuel comes down, and there are observers of the oil industry that think, in the long run, prices will come down, then AA will be positioned very well for the future.
 
jetdeltamsy
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RE: AA To File CH11?

Tue Oct 04, 2005 1:03 pm

It is highly probable that AA will file. While AA enjoys relative good labor relations, the cuts that are necessary for AA to be competitive would be hard to secure at the bargaining table.

However I expect AA management will be much more employee-friendly in bankruptcy than NWA or UAL.
Tired of airline bankruptcies....EA/PA/TW and finally DL.
 
ikramerica
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RE: AA To File CH11?

Tue Oct 04, 2005 1:08 pm

Quoting Jetdeltamsy (Reply 20):
However I expect AA management will be much more employee-friendly in bankruptcy than NWA or UAL.

What management? Doesn't AA management lose effective control under BK as a court approved management team can be brought in to replace them?
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TACAA320
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RE: AA To File CH11?

Tue Oct 04, 2005 1:21 pm

Quoting JFKLGANYC (Reply 3):
This is a Bullsh*t thread and should be deleted. There is no basis for this statement!

Ask for it. You know how.
'Science without religion is lame, religion without science is blind'. Albert Einstein
 
buddymagoo
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RE: AA To File CH11?

Tue Oct 04, 2005 2:18 pm

At a recent employee meeting there were rumblings of trouble but no real threat of Chapter 11 filings. There was mention that the competition was extremely difficult given that most of ours is currently in bankruptcy. Although, fuel costs remain our highest problem there are already operational programs being implemented to reduce the amount of money leaving to pay for jet A.
That'll happen!
 
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jfklganyc
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RE: AA To File CH11?

Tue Oct 04, 2005 2:29 pm

"JFKLGANYC simply made an immature comment...if he thinks it is a "bullsh*t thread" then he should not read it. it is very simple."

The reason I said what I said is because the following statement, which is the basis for the thread, is inaccurate garbage put in this forum for no reason but to get a reaction:

"I have spoken to several friends still at AA over the past few days and the strong rumor is AA will file CH11 before the 10/17 deadline."

There are no rumors circulating like this at AA. If "several" people have said it, it also implies that it is a large, well-circulated rumor . . . ASK ANYONE WHO WORKS THERE: THERE ARE NO RUMORS! (large or small) regarding a bankruptcy filing in the next two weeks.

Now if the thread were to say "do u think" or "what if" AA files then it would be a different story.

But the thread is based on rumors at AA that do no exist! Therefore the whole thread is based on a topic that is false.

Just my two cents.

PJ
 
kevi747
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RE: AA To File CH11?

Tue Oct 04, 2005 6:06 pm

Quoting JFKLGANYC (Reply 24):
There are no rumors circulating like this at AA. If "several" people have said it, it also implies that it is a large, well-circulated rumor . . . ASK ANYONE WHO WORKS THERE: THERE ARE NO RUMORS! (large or small) regarding a bankruptcy filing in the next two weeks.

I agree, I work here too and haven't heard anything like that going around. I do think about it though. There are major changes going on in this industry and I don't know how it will affect us.  scared 
"Reality has a well-known liberal bias." --Stephen Colbert
 
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RE: AA To File CH11?

Tue Oct 04, 2005 6:27 pm

Quoting JFKLGANYC (Reply 3):
AA is nowhere near bankruptcy . . . and there are NO repeat NO rumors in the ranks that would even come close to suggesting that.

Welcome to the club chief. Why cant we talk about this? So far this forum has Delta selling it's 764's to AC, getting rid of all it's 757s, and merging with NW! Nothing is too outlandish for the kids here!

B
 
qqflyboy
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RE: AA To File CH11?

Tue Oct 04, 2005 6:37 pm

Here's another AAer with no wind of a pending bankruptcy filing. The consensus seems to be we've still got a lot of hurdles to jump, but we're positioned well enough to clear them in the short term, i.e. within next year. Fuel prices remain the only real hurdle... one many experts think will collapse within the next 12 months. Under $50/barrell is expected.
The views expressed are mine alone and do not necessarily reflect my employer’s views.
 
UAcosCS
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RE: AA To File CH11?

Tue Oct 04, 2005 6:42 pm

Quoting JFKLGANYC (Reply 3):
This is a Bullsh*t thread and should be deleted. There is no basis for this statement!

AA is nowhere near bankruptcy . . . and there are NO repeat NO rumors in the ranks that would even come close to suggesting that.

BREATH! HEE,HEE,HEE,HEE

Quoting Aa777flyer (Reply 10):
Like I said it was a rumour. I really hope it is just "Cockpit Chatter" and not true. AA is a GREAAT airline with a VERY proud legacy, it would be a VERY sad day to see it in CH11.

There is no way this is cock pit chatter. You have to be under 2 billion i believe to file. AA isnt even close. Like it was mentioned earlier, you cant enter chap.11 for competitive reasons.
We had dreams and songs to sing, It's so lonely round the fields of Athenry.
 
AeroWesty
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RE: AA To File CH11?

Tue Oct 04, 2005 6:54 pm

After all the bankruptcy threads recently, a lot of these topics have already been covered.

Quoting Commavia (Reply 2):
I highly doubt that AA is going to file for bankruptcy with $3.6B in cash. They'd end up wasting most of it in bankruptcy, as it would get disbursed to creditors.

It would go mainly to pay for the related costs of a bankruptcy. Unsecured creditors are last in line after priority and secured creditors, and the cost of the bankruptcy itself. Also, Chapter 11 is not a liquidation, only a reorganization.

Quoting 7E72004 (Reply 12):
you can't file for bankruptcy just to be more competitive. Your assets have to be less than your liabilities.

Do you have debt? You may file bankruptcy. It may be rejected, but you may file.

Quoting FlyPNS1 (Reply 6):
If AA filed BK, they'd get sued big time by shareholders and probably the unions too.

There's no requirement for stock to be cancelled in a bankruptcy. Stock is cancelled most of the time, but it is not a requirement.

Quoting Ckfred (Reply 19):
Chapter 11 is not cheap. A debtor has to pay lawyers, consultants, other experts, etc. Between AA's cash position and its improved relationships with its unions, it doesn't need to file.

Plus it could not hedge fuel. A truly expensive option depending upon where oil prices might go.
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tockeyhockey
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RE: AA To File CH11?

Tue Oct 04, 2005 10:22 pm

ok, this thread is completely nuts. you can file for bankruptcy at any point, regardless of how profitable you are, but you are not guaranteed that the government will accept your filing! i highly doubt that a profitable company will be allowed to file for bankruptcy.
 
vv701
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RE: AA To File CH11?

Tue Oct 04, 2005 10:33 pm

Quoting Aa777flyer (Thread starter):
the filing will be for competitive reasons

The US airline industry is so protected that although they benefit from laws that stop foreign investment and do not allow Federal government employees or US armed forces personnel to fly by non-US airlines, it would be logical for both AA and CO to file for Chapter 11 Protection before 10/17. Otherwise they will not have the same competitive advantage that the other US legacy carriers have in international markets.
 
PRAirbus
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RE: AA To File CH11?

Tue Oct 04, 2005 10:49 pm

According to FA Union's Publication sent yesterday (SKYWORD), there are no plans for AA to file for CH11 in the immediate future. It is very unlikely a date (OCT17) was mentioned on the rumor mill and the unions not notified. Anything can happen w/the fuel crisis but CH11 for AA on/before OCT17 is unrealistic. Rumors are circulating about a loss for the last quarter for obvious reasons (hurricanes, fuel, other airlines' crisis, etc), that is likely. The AA rumor mill does indicate there might be another reduction of personnel on the Front-Line Management side, they also had paycuts and even make less ($$$) than most unionized employees. On repeated occasions, AA CEO (Arpey) has told employees AA will not file for CH11 unless it is absolutely necessary. They rather keep things in-house than handing everything on a plate to a Bankruptcy Judge, the Unions are singing the same tune in that aspect.
 
airbazar
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RE: AA To File CH11?

Tue Oct 04, 2005 10:53 pm

Quoting Qqflyboy (Reply 27):
one many experts think will collapse within the next 12 months. Under $50/barrell is expected.

LOL, keep dreaming. Where these the same experts that said oil would never go above $60? As long as we can afford to buy it, there's no reason for oil to ever go down. And as of right now, I see no indication that we can't afford the current prices. Also, look at the trend over the last 10-15 years. When was the last time you saw the price of oil drop by a whooping $10/barrel? Never!
 
Greasemonkey
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RE: AA To File CH11?

Tue Oct 04, 2005 10:56 pm

What about double-secret bankruptcy?

-GM  Silly
It's usually a good idea to know what all the buttons do...before you push them.
 
Tornado82
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RE: AA To File CH11?

Tue Oct 04, 2005 11:41 pm

Quoting N908AW (Reply 18):
You forgot the more important factor which doesn't quite match up ratio-wise. NW lost $225 million in Q2. AA gained $52 million.



Quoting Jetdeltamsy (Reply 20):
It is highly probable that AA will file. While AA enjoys relative good labor relations, the cuts that are necessary for AA to be competitive would be hard to secure at the bargaining table.

Can't file just to be competitive.

Quoting AeroWesty (Reply 29):
It may be rejected, but you may file.



Quoting Tockeyhockey (Reply 30):
regardless of how profitable you are, but you are not guaranteed that the government will accept your filing! i highly doubt that a profitable company will be allowed to file for bankruptcy.

That attempted filing will cost millions itself. If AA wants to piss away millions on something... why not buy more 50 seat RJ's. It's the same concept, there won't be an ROI.

Quoting Airbazar (Reply 33):
Also, look at the trend over the last 10-15 years. When was the last time you saw the price of oil drop by a whooping $10/barrel? Never!

After Iraq War I (Desert Storm)
After 9/11
About 3 weeks ago it went from nearly $72 to about $62 briefly before Rita stirred things up again.

September's demand domesitcally for gasoline has even dropped 3% compared to last year's September (from CNN.com.. no time for the actual link but it's on there today in the money section). Growth in foreign markets is slowing, etc. Take away a few hurricanes, and we'd be in the $50's already.
 
jetdeltamsy
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RE: AA To File CH11?

Wed Oct 05, 2005 1:11 am

Quoting Tornado82 (Reply 35):
Quoting Jetdeltamsy (Reply 20):
It is highly probable that AA will file. While AA enjoys relative good labor relations, the cuts that are necessary for AA to be competitive would be hard to secure at the bargaining table.

Can't file just to be competitive.

Oh..most certainly they can. That's how they would end their pensions, etc...
Tired of airline bankruptcies....EA/PA/TW and finally DL.
 
commavia
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RE: AA To File CH11?

Wed Oct 05, 2005 1:21 am

Quoting Jetdeltamsy (Reply 36):
Oh..most certainly they can.

But again -- we keep hearing this drumbeat that the only way for AA to be competitive with their bankrupt competitors is to file. I still don't quite understand, though, from those who advocate this position -- how exactly they think AA will be more competitive if it follows Delta, Northwest, United and USAirways into bankruptcy? All of those airlines either have been in the last three years, or currently are, in bankruptcy, and yet American -- which hasn't filed for bankruptcy since 9/11 nor ever -- still has lower costs, and is at least marginally more profitable (or less unprofitable) than all of them. In essence, American has stayed out of bankruptcy, and is far more competitive than any of these airlines.
 
777STL
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RE: AA To File CH11?

Wed Oct 05, 2005 1:26 am

Quoting Aa777flyer (Reply 5):
The truth of the matter is that with fuel prices so high, it could put a serious pressure on AA to file sometime in 2006 (mid), and with the laws changing it may be more beneficial for AA to file sooner than later. That would be the basis of an expedited filing.

No. There is no basis for this. You don't just file bankruptcy for competitive reasons, aka "because all the other kids are doing it".

That is an abuse of the system were AA to attempt to file bankruptcy.

Contrary to what most people believe here, there are actually consequences to filing bankruptcy. And AA filing bankruptcy, with them trying so hard to stay out and were successful, NO WAY. That and the fact that this came from someone's brother's friend who heard rumors circulating AA, haha no.
PHX based
 
ltbewr
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RE: AA To File CH11?

Wed Oct 05, 2005 1:28 am

Let us not forget that other crises could put them (and many other companies including airlines) into BK, including a major 9/11 level terror attack, if the 'bird flu' starts infecting significant numbers of people (like SARS in Asia a few years ago), another Class 4 hurricane in a populated area with attendent serious problems upon the US economy.
 
AADC10
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RE: AA To File CH11?

Wed Oct 05, 2005 1:41 am

Quoting Tockeyhockey (Reply 30):
ok, this thread is completely nuts. you can file for bankruptcy at any point, regardless of how profitable you are, but you are not guaranteed that the government will accept your filing! i highly doubt that a profitable company will be allowed to file for bankruptcy.

AA has just barely been profitable and if jet fuel stays in the $2/gallon range, that will kill any sign of profits in the future. They are also deeply in debt, although not as far as the other "big three."

Quoting PRAirbus (Reply 32):
Anything can happen w/the fuel crisis but CH11 for AA on/before OCT17 is unrealistic.

There will probably not be a filing before Oct. 17 because there would be some hints, as there were for DL and NW. However, if they do eventually have to file for Ch. 11, they will not have as much time to reorganize after the new rules take effect Oct. 17. That could leave them in very bad shape.
 
ATA767
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RE: AA To File CH11?

Wed Oct 05, 2005 1:43 am

Lets not forget. AA I am sure is seeing an increase in traffic as they are the only carrier in the US that people fell confident about as they are not in BK. That alone gives them a competitive edge that will be lost if they join the party. I agree that they can get the reductions out of BK and not incur the cost and stigma attached with filing.
 
Tornado82
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RE: AA To File CH11?

Wed Oct 05, 2005 1:52 am

Quoting ATA767 (Reply 41):
as they are the only carrier in the US that people fell confident about as they are not in BK.

Once Again...

Continental is NOT in bankruptcy, and USAirways has emerged, therefore they are NOT in bankruptcy.

Likewise, there are some Southwest cheerleaders here who'll point out that they are not either. Likewise for Airtran, Jet Blue, and Indepedence Air (well, technically)
 
LMP737
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RE: AA To File CH11?

Wed Oct 05, 2005 1:55 am

Quoting Ikramerica (Reply 21):
What management? Doesn't AA management lose effective control under BK as a court approved management team can be brought in to replace them?

What gave you that idea?
Never take financial advice from co-workers.
 
whitehatter
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RE: AA To File CH11?

Wed Oct 05, 2005 2:17 am

Just remember when you go into Ch.11 you hand the keys over to someone else.

Just like personal bankruptcy, the ability of senior management to manage is handed over to some third party. It also requires cash to do as all of a sudden many regular operational facilities such as fuel credit accounts become harder to manage.

If bankruptcy was a soft option then everyone would be doing it. It also jacks up premiums on any future borrowing (remember TWA and those crippling 717 lease rates...?). If AA can possibly avoid a filing then they absolutely have to work to the last second to avoid it.

Somehow I hope they need never go that route. AA themselves have stated that the position above is their position, and they would explore every last avenue possible before going for the court option.
Lead me not into temptation, I can find my own way there...
 
kevi747
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RE: AA To File CH11?

Wed Oct 05, 2005 2:18 am

Quoting Commavia (Reply 37):
All of those airlines either have been in the last three years, or currently are, in bankruptcy, and yet American -- which hasn't filed for bankruptcy since 9/11 nor ever -- still has lower costs, and is at least marginally more profitable (or less unprofitable) than all of them. In essence, American has stayed out of bankruptcy, and is far more competitive than any of these airlines.

I love reading Commavia's posts!  praise  This kid is smart and knows a lot about AA. Plus his posts are always so reasoned and calm (unlike some other drama queens, myself included  wink  ). Thanks!!
"Reality has a well-known liberal bias." --Stephen Colbert
 
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flashmeister
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RE: AA To File CH11?

Wed Oct 05, 2005 2:21 am

American -- which hasn't filed for bankruptcy since 9/11 nor ever -- still has lower costs

The jury's still out on that one. Now that US has emerged and gotten married, we'll see what their costs are without pension obligations. Same goes for UA's impending emergence. I suspect their costs including pension obligations will be dramatically lower than AA. Otherwise, what's the motivation for NW to file? That's all their game is about -- pensions and contracts.
 
Tan Flyr
Posts: 1713
Joined: Sat Aug 19, 2000 11:07 pm

RE: AA To File CH11?

Wed Oct 05, 2005 2:29 am

Quoting Airbazar (Reply 33):
When was the last time you saw the price of oil drop by a whooping $10/barrel? Never!

1986..the oil price collapse. Check your History. Oil was over 32.00 per barrel when Reagan took office in 1981. He signed legislation de-regulating oil price controls and the market drifted lower then in the spring of 1986, the Saudi'd flodded the world market with crude..and the more than 10 buck drop in oil ensued.

There is a lot of speculation in today's price...sooner or later it will come down to closer 50.00
 
USADreamliner
Posts: 1211
Joined: Sat Sep 17, 2005 1:33 pm

RE: AA To File CH11?

Wed Oct 05, 2005 2:50 am

I hope they do.
Hate American.


USADreamliner.
 spit 
 
NASOCEANA
Posts: 277
Joined: Fri Jul 29, 2005 3:40 pm

RE: AA To File CH11?

Wed Oct 05, 2005 2:57 am

I'm sorry if this is blunt! But why doesn't the whole airline industry just file for bankruptcy protection and start new! (It's seems inevitable!)

It just seems that to fly domestic you will have to fly a LCC. And to fly international you will have to fly an international carrier out of the states.

Its just crazy, if fuel prices flucuates $.50 airlines are filing press releases saying that they have to cut flights to save on fuel!

If you are currently a pilot, go out today if you haven't already and buy pension fund insurance!

Sincerely,
NASOCEANA  crossfingers 

[Edited 2005-10-04 20:03:50]
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