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Thread: AA Parent Company Files Chapter 11

  1. #1
    Senior Member moose135's Avatar
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    AA Parent Company Files Chapter 11

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

    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

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    Senior Member Delta777LR's Avatar
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    my best to AA
    Sergio has been a huge Delta Air Lines fan since 1992!!

    Sergio Cardona

    http://www.jetphotos.net/showphotos....e=1&display=15

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    Hopefully this does not impact my travel plans in March.....
    Steve Furst

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    JetPhotos.net

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    Senior Member NIKV69's Avatar
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    Let the merger rumors commence.
    'My idea of a good picture is one that's in focus and of a famous person doing something unfamous.' Andy Warhol

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    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.
    Jeff
    Chicago, IL

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    Senior Member moose135's Avatar
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    Jeff, good luck to you and your coworkers - you certainly will need it!

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    Senior Member Mateo's Avatar
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    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!

  8. #8
    Senior Member NIKV69's Avatar
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    Quote Originally Posted by Mateo View Post
    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.
    'My idea of a good picture is one that's in focus and of a famous person doing something unfamous.' Andy Warhol

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