AA Parent Company Files Chapter 11

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2011-11-29, 08:56 AM
moose135

AA Parent Company Files Chapter 11

From: http://www.bloomberg.com/news/2011-1...ilots-end.html

Quote:

American Airlines parent AMR Corp. (AMR) filed for bankruptcy after failing to secure cost-cutting labor agreements and sitting out a round of mergers that dropped it from the world’s largest airline to No. 3 in the U.S.

With the filing, American became the final large U.S. full- fare airline to seek court protection from creditors. The Fort Worth, Texas-based company, which traces its roots to 1920s air- mail operations in the Midwest, listed $24.7 billion in assets and $29.6 billion in debt in Chapter 11 papers filed today in U.S. Bankruptcy Court in Manhattan

Also announced today, AMR Chairman and CEO Gerald Arpey will retire and be replaced by AA President Thomas Horton. From reports, the company has $4.1 billion on hand to continue day-to-day operations, and all operations will continue as scheduled.

AA official press release:

http://aa.mediaroom.com/index.php?s=43&item=3397
2011-11-29, 10:58 AM
Delta777LR

my best to AA
2011-11-29, 10:59 AM
steve1840

Hopefully this does not impact my travel plans in March.....
2011-11-29, 01:37 PM
NIKV69

Let the merger rumors commence.
2011-11-29, 05:46 PM
AAORDTOWER

As a 20-year employee of AAL, this was a hard pill to swallow today. Usually the first thing to go is our pension fund. However it was inevitable, and perhaps for the best in the long run. God bless all my co-workers.
2011-11-29, 06:26 PM
moose135

Jeff, good luck to you and your coworkers - you certainly will need it!
2011-11-29, 07:50 PM
Mateo

I assume there's no worries about AA as a going concern, but this a legal method to shed itself of pension obligations before they're bought up by someone. Senior execs get huge paydays; AA line employees get their retirements wiped out. Make sure to thank your Congressman for weak bankruptcy laws!
2011-11-29, 08:22 PM
NIKV69

Quote:

Originally Posted by Mateo

I assume there's no worries about AA as a going concern, but this a legal method to shed itself of pension obligations before they're bought up by someone. Senior execs get huge paydays; AA line employees get their retirements wiped out. Make sure to thank your Congressman for weak bankruptcy laws!

As opposed to the company defaulting and being liquidated and everyone losing everything? I doubt a judge will let workers lose their whole pensions while letting execs get golden parachutes. Let's see what happens before we sound the Richard Trumka horn just yet.