American Airlines files bankruptcy

MacDawg

macrumors Core
Original poster
Mar 20, 2004
19,824
4,504
"Between the Hedges"
American Airlines files bankruptcy

Link to article

NEW YORK (CNNMoney) -- American Airlines' parent company, AMR Corp., announced Tuesday that it has filed for chapter 11 bankruptcy.
AMR said American Airlines, American Eagle and all other subsidiaries will honor all tickets and reservations and operate normal flight schedules during the bankruptcy filing process, using its $4.1 billion in cash.
The airline also announced that Gerard Arpey, its chairman and CEO, is retiring. He is being succeeded by Thomas Horton, who was named president of the company in July 2010.
 
Last edited:

B777Forevar

macrumors 6502a
Jul 25, 2011
767
2
Chicago, IL
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
 

PigDog

macrumors member
Jul 18, 2002
69
0
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
 

Huntn

macrumors demi-god
May 5, 2008
19,079
20,634
The Misty Mountains
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
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. :(
 

quagmire

macrumors 603
Apr 19, 2004
6,375
1,298
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. :(
American Airlines is not that stupid to repeat 2003 again.....
 

Richdmoore

macrumors 68000
Jul 24, 2007
1,809
268
Troutdale, OR
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....
 

Huntn

macrumors demi-god
May 5, 2008
19,079
20,634
The Misty Mountains
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....
Actually Corporate America and human beings in charge should make you sick... ;)
 

OutThere

macrumors 603
Dec 19, 2002
5,730
3
NYC
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:
 

MacNut

macrumors Core
Jan 4, 2002
22,061
8,470
CT
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:
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.
 

MacDawg

macrumors Core
Original poster
Mar 20, 2004
19,824
4,504
"Between the Hedges"
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.
Which was due to poor leadership, lack of planning, etc over an extended period of time
 

dmr727

macrumors G3
Dec 29, 2007
8,638
58
NYC
Which was due to poor leadership, lack of planning, etc over an extended period of time
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! :)
 

Rodimus Prime

macrumors G4
Oct 9, 2006
10,136
4
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....
Not just protected. They will some how get yet another raise and big bonuses for doing this.
 

OutThere

macrumors 603
Dec 19, 2002
5,730
3
NYC
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.
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.
 

MacNut

macrumors Core
Jan 4, 2002
22,061
8,470
CT
One of the evening news programs had a stat that since 1950 none of the airlines have ever made a profit.
 

MacNut

macrumors Core
Jan 4, 2002
22,061
8,470
CT
I don't believe that is accurate
What's that old saying, there are lies, damned lies and statistics
I think CBS said that last night that if you combine every airline that ever existed since the beginning they never turned a profit.
 

diehldun

macrumors 6502a
Nov 15, 2003
674
0
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.
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.
 

quagmire

macrumors 603
Apr 19, 2004
6,375
1,298
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.
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.
 

dmr727

macrumors G3
Dec 29, 2007
8,638
58
NYC
^^^ exactly. Make no mistake - if the union had accepted the concessions, AA would still be right here in bankruptcy.
 

Rodimus Prime

macrumors G4
Oct 9, 2006
10,136
4
^^^ exactly. Make no mistake - if the union had accepted the concessions, AA would still be right here in bankruptcy.
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.
 

Huntn

macrumors demi-god
May 5, 2008
19,079
20,634
The Misty Mountains
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.
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.

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.
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%.
 
Last edited:

Rodimus Prime

macrumors G4
Oct 9, 2006
10,136
4
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%.
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.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.