American Airlines files bankruptcy

Discussion in 'Current Events' started by MacDawg, Nov 29, 2011.

  1. MacDawg, Nov 29, 2011
    Last edited: Nov 29, 2011

    MacDawg macrumors P6

    MacDawg

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    #1
    American Airlines files bankruptcy

    Link to article

     
  2. B777Forevar macrumors 6502a

    B777Forevar

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    Jul 25, 2011
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    Chicago, IL
    #2
    About time they filled.

    AA will come out stronger after this.

    I really would hate to see them go (even though United is my fav airline).
    O'Hare would be weird w/o them
     
  3. PigDog macrumors member

    Joined:
    Jul 18, 2002
    #3
    My miles are secure!

    I received this:


    Dear AAdvantage® Member,

    As you may know, on Tuesday, November 29, American Airlines filed for reorganization under Chapter 11. We took this action as part of our efforts to secure our long-term success in delivering the highest standards in air travel. We are committed to meeting your travel needs with outstanding customer service and safety, and it will be business as usual at American throughout our reorganization process. More than 80,000 people at American appreciate your loyalty and look forward to continuing to serve you.

    We want to assure you that your AAdvantage® miles are secure. The AAdvantage miles that you've earned are yours and will stay yours, subject to usual policies, until you choose to redeem them for a great award with us. Likewise, your elite qualifying miles and your elite status, including lifetime status granted under the Million MilerSM program is secure and remains intact. You will continue to earn miles through all our existing AAdvantage participating companies and you will be able to redeem those miles for the same great awards — flights, upgrades, car rentals and hotels just to name a few. And, throughout the coming year, we will be adding even more opportunities to earn miles, as well as new ways to redeem those miles.

    American is honoring all tickets and reservations as usual, and making normal refunds and exchanges. And, we intend to maintain a strong presence in domestic and international markets. As we and all airlines routinely do, we will continue to evaluate our operations and service, assuring that our network is as efficient and productive as possible. Additionally, relationships with our oneworld Alliance and other codeshare partners are continuing to provide you with opportunities to earn and redeem miles for travel to hundreds of destinations worldwide, and we are honoring all tickets and reservations for travel on our partner airlines as usual. For information about American's reorganization process, please visit AA.com/restructuring.

    Even more importantly, we remain committed to providing a superior customer experience with a focus on delivering what our customers value most — the newest fleet with our upcoming aircraft deliveries, network strength in the important cities of the world and world-class products, service and technology.

    American Airlines has a proud history, and we will have a successful future. All of us on the American team thank you for your loyalty and we look forward to welcoming you aboard soon.

    Sincerely,

    Maya Leibman
    Maya Leibman
    President — AAdvantage Loyalty Program
     
  4. Huntn macrumors G5

    Huntn

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    #4
    They are not going anywhere. This kind of reorganization besides giving the company breathing room, is an outstanding opportunity to beat the **** out of their employees and reward executives for executing it. :(
     
  5. quagmire macrumors 603

    quagmire

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    #5
    American Airlines is not that stupid to repeat 2003 again.....
     
  6. MacDawg thread starter macrumors P6

    MacDawg

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    #6
    You grossly under estimate the airline industry's capacity for stupidity
     
  7. joepunk macrumors 68030

    joepunk

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    #7
    I would be shocked if that didn't happen.
     
  8. Richdmoore macrumors 65816

    Richdmoore

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    #8
    And another group of aviation professionals just lost their pension and retirement...... Don't worry, the top executives are protected, so their retirement and other benefits can't be touched.....

    Sometimes the aviation business makes me sick....
     
  9. Huntn macrumors G5

    Huntn

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    #9
    Actually Corporate America and human beings in charge should make you sick... ;)
     
  10. OutThere macrumors 603

    OutThere

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    #10
    They filed for bankruptcy despite having over $4 billion in cash AND they're going ahead with a deal for a 460 new jets? :rolleyes:
     
  11. MacNut macrumors Core

    MacNut

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    #11
    I believe part of the problem is that they have the oldest jets in service of any airline and they are not fuel efficient. The new jets will save them money long term.
     
  12. MacDawg thread starter macrumors P6

    MacDawg

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    #12
    Which was due to poor leadership, lack of planning, etc over an extended period of time
     
  13. dmr727 macrumors G3

    dmr727

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    #13
    Exactly. And labor gets to shoulder the blame, while these idiots in charge give themselves huge bonuses for a job well done. Makes me sick.

    At least the video has lots of cool Mad Dog footage! :)
     
  14. Rodimus Prime macrumors G4

    Rodimus Prime

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    #14
    Not just protected. They will some how get yet another raise and big bonuses for doing this.
     
  15. OutThere macrumors 603

    OutThere

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    NYC
    #15
    Well it's good that the management made sure to address this in advance. You can tell the CEO was doing a good job, since he got an 11% pay increase from 2009 to 2010—from $4.7m to $5.2m, to reward his success in, you know, making the company so profitable.
     
  16. MacNut macrumors Core

    MacNut

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    #16
    One of the evening news programs had a stat that since 1950 none of the airlines have ever made a profit.
     
  17. MacDawg thread starter macrumors P6

    MacDawg

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    #17
    I don't believe that is accurate
    What's that old saying, there are lies, damned lies and statistics
     
  18. MacNut macrumors Core

    MacNut

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    #18
    I think CBS said that last night that if you combine every airline that ever existed since the beginning they never turned a profit.
     
  19. diehldun macrumors 6502a

    Joined:
    Nov 15, 2003
    #19
    Oh please. Unlike United's Glenn Tilton, Gerard Arpey does not have a golden parachute- no severance, and with AMR closing at $0.32 today, his stock holdings are essentially worthless.

    The offers tabled previously (in some cases mere weeks ago) that the unions refused will now be downright luxurious compared to what they will have forced upon them in court. What you sew, now you reap.
     
  20. quagmire macrumors 603

    quagmire

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    #20
    Can you blame American's union for being hesitant in accepting deals with management using the threat of bankruptcy? They pulled the same crap back in 2003. " Oh we need to make cuts in order to prevent bankruptcy". The unions agreed to the cuts and management took the savings to line their pockets with bonuses.
     
  21. dmr727 macrumors G3

    dmr727

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    #21
    ^^^ exactly. Make no mistake - if the union had accepted the concessions, AA would still be right here in bankruptcy.
     
  22. Rodimus Prime macrumors G4

    Rodimus Prime

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    #22
    And chances are would of used bankruptcy to get even more cuts from the union.

    Sad part is in the this mess upper management will not take any hits at all. They will make everyone below them take hits before they risk losing one dollar of their pay. Hell they will more than likely still get a raise.
     
  23. Huntn, Dec 1, 2011
    Last edited: Dec 1, 2011

    Huntn macrumors G5

    Huntn

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    #23
    True, but the point is this is a strategic **** your employees and make me wealthy bankruptcy. If you remember back, bankruptcy used to be a badge of shame and failure. Now it's a savvy management tool, very popular these days in immoralistic corporate society.

    Executives and upper management will most certainly be rewarded. We can't afford to loose these most valuable people who led us into bankruptcy. Bonuses for the good guys!

    Shared sacrifice- that's a good one. Quarter rations for everyone except the valuable people. If you view a corporation as an organism, they think the brain deserves 90% of the nutrition and the remainder of the body can get by with 10%.
     
  24. Rodimus Prime macrumors G4

    Rodimus Prime

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    #24
    I think it is more 99% for the top and 1% for everyone else.

    It speaks volumes to the employees when upper management takes a hit /pay cut first. It make the masses much more willing to work with them. But as it has been going they have zero reason to work with management as history has shown they are not willing to take any cuts or pain. Hell they just want raises.

    It has been the way of business. OWS is a result of these endless behavior of the upper management of companies.
     
  25. diehldun macrumors 6502a

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