Talking about ‘companies’ is like talking about ‘houses’ or ‘consumers’. It is such a large category the statistics do not show anything meaningful.
Every investor knows that the airlines have been losing money for years, and never really made any money. Things are entirely different over at Google and Intel.
If I were in charge of AMR, I’d use this chapter 11 filing as an opportunity to toss the commie union goons out of the company. Mob-ruled Big Labor is the primary cause of weakened performance of American companies and why so many have no choice but to outsource overseas.
The company’s huge order of planes to upgrade its aging fleet was a joke. Created a bunch of press releases for planes that will never be delivered. AMR will continue to fly old bankrupt TWA planes for the foreseeable future.
If it wasn’t for the Demonrat Wright Amendment protecting American, Southwest Airlines would have forced it into Chapter 11 years ago.
ah, the blessings of deregulation. I just can’t feel sorry for airlines. All of them have been racing to the bottom for as long as I can remember.
American can’t continue to appease the unions when other airlines have already taken Chap. 11 to deal with that problem. It’s a simple matter of survival.
American has always been a top-heavy organization, as far back as I can remember.
With the legacy costs (Retirements) they are eating, this isn’t surprising, or unexpected. Pilots have been cashing out retirement deals they got in the strikes of the 90’s, eating up cash.
And they have had a myriad of Unions strike threats in the last 3-4 years, all demanding mo’ money.
Combine that with the bet they made in 2009 that fuel prices would remain at about $60, allowing them to not cut capacity, and go after market share as others pulled back, and the writing was on the wall.
I could go on and on. They are saddled with old-era airport contracts, etc,etc. that drive expenses up. And frankly, American has always been known as a great place for pilots and mechanics, but not so much for customers, and service.
I think their share price low for the day today was $0.20.
I have dealt with the cargo side of American Airlines and I couldn’t not stand them. They had the usual union bad attitude. Not surprised to see how they are being run into the ground.
CRASH AND BURN, BABY!
Hire some guy like Bob Crandall and get back to the largest cash position of any airline.
I guess travelers should start ‘OCCUPY AA’. It is a bad day for fans of AA.
Not surprising. AA was the only so-called “legacy” carrier not to have gone through bankruptcy. They were still saddled with the cost structures (not just union contracts, but buying airplanes, terminals, route structures, etc.) that go back to the days of regulation, when they were essentially guaranteed a profit by the government.
Every other carrier had to go through bankruptcy to be able to compete in the race to the bottom that domestic air travel is undergoing. AA had just enough cash to have the luxury of picking the time they wanted to clean house.
Creative bookkeeping.
The razzle-dazzle only last for a while, then reality intrudes.
It just seems like unions do not understand the concept of “give-back” until the roof caves in, and the members suddenly have no place to go to work.
The universe is a cruel place, and the only crime which cannot ever be pardoned is stupidity.
For some, it is a lifetime sentence.
Because deregulation has turned airline customers into the same class of folk who used to take the bus or train.
Because the TSA has so effed-up the boarding process that many people refuse to fly commercially.
Because by the time I get to the airport, check bags, submit to the grope, fly, retrieve bags, and rent a car, a trip less than 800 miles can be accomplished just as rapidly by driving, AND I CAN CHOOSE MY OWN FOOD! Furthermore, I’m probably not going to lose my luggage, be ripped off by a luggage “inspector”, nor will I need to change planes or have a layover.
Any questions?