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11-29-2011, 02:41 PM
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#1 | | Unofficial Tin Foil Hat Specialist.
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| American Airlines files for Bankruptcy
Well here it is, the inevitable decision that the company must take. Quote: |
Originally Posted by CNN NEW YORK (CNNMoney) -- American Airlines parent AMR, one of the few major U.S. airlines to avoid bankruptcy, finally succumbed Tuesday and filed for chapter 11.
AMR said that all of its subsidiaries will honor tickets and reservations and operate normal flight schedules during the bankruptcy process.
The airline also announced that Gerard Arpey, its chairman and CEO, is retiring. He is being succeeded by Thomas Horton, who said at a press conference that Arpey had opposed the bankruptcy filing. In an interview with CNN's Richard Quest, Horton said the airline was forced into bankruptcy because of cost disadvantages it faced compared to rivals that had already gone though bankruptcies. Folks at American have worked very hard and honorably to avoid that path over the last decade, but it became clear that gap had become too wide now, it had become untenable, and it was time to turn the page," said Horton, who was named president of AMR in July 2010.
Before Tuesday's filing, American, Southwest (LUV, Fortune 500) and JetBlue (JBLU) were the only major U.S. airlines that had not filed for bankruptcy reorganization. The timing surprised airline analyst Jeff Kaufman of Sterne Agee, since AMR had enough cash to ride out losses probably through next year. At the same time, he said the filing makes sense because of several factors, including increased fuel prices, AMR's loss of business travel customers to competitors and tough labor union negotiations. American was the world's largest carrier as recently as 2006. But mergers have pushed it to third in terms of miles flown by paying passengers, behind United Continental (UAL, Fortune 500) and Delta Air Lines (DAL, Fortune 500). American has been widely seen as the weakest of the major airlines for some time now. It has reported a profit in only one quarter since 2007, and it lost $4.8 billion over those 3-1/2 years. Analysts surveyed by Thomson Reuters expect its losses to continue through at least 2012.
Still the company officials had been insisting that it was not looking at bankruptcy. On Tuesday, Horton told CNN that bankruptcy "never has been a goal or preference." He said that American is paying $800 million a year more in labor costs than it would be if it had labor contracts comparable to its competitors. "Clearly it was our preference to do this in consensual fashion," he said. "Unfortunately, we were not successful in that regard." American will now gain significantly greater leverage in those talks given the bankruptcy court's power to void contracts.
Kaufman, the industry expert, said American needs contracts that would allow it the greater flexibility and lower staffing levels that other carriers have. Horton also told CNN that it planned to move ahead with a massive order for 460 jets from Boeing (BA, Fortune 500) and Airbus it announced in July. American's current fleet includes 247 MD-80 planes that haven't been made since 1999 and are considered to be fuel guzzlers. The airline said that its cash reserves, coupled with the cash from ongoing ticket sales, should give it the funds it needs during reorganization. Therefore, it will not need what is known as a debtor-in-possession loan that bankrupt companies typically use to operate under Chapter 11.
Shares of AMR (AMR, Fortune 500), which had already plunged nearly 80% since the start of the year, tumbled another 81% to 30 cents a share on Tuesday. Shareholders are typically wiped out during the bankruptcy process | CNN News Article | 
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11-29-2011, 03:10 PM
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#2 | | Even when im right, revscene.net is still right!
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Last edited by AAnthony; 11-13-2014 at 01:55 PM.
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11-29-2011, 04:21 PM
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#3 | | I subscribe to Revscene
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| Quote:
Originally Posted by AAnthony  Declare Bankruptcy
Get rid of the Union
Hire non unionized workers
????????
PROFIT Posted via RS Mobile | pretty much
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11-29-2011, 04:35 PM
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#4 | | SFICC-03*
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ok? they'll just get bailed out anyhow
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11-29-2011, 04:36 PM
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#5 | | I only answer to my username, my real name is Irrelevant!
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|  sounds like the CEO that is "retiring" has something the board cant deal with (morals/ethics)  | |
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11-29-2011, 04:44 PM
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#6 | | My homepage has been set to RS
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make a shitty product. make it even worse during recession. offer no unique points of differentiation. offer shit service. this in a recession = bankrupcy. period. weve seen this shit before...when will american companies learn that your customers matter? Posted via RS Mobile | |
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11-29-2011, 06:10 PM
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#7 | | Banned By Establishment
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^^There's that, and then there are the unions that bleed these companies dry. Yeah, its all good to get those pay raises and such when times are good, but then you sit down to talk when things aren't so good, and you get a bunch of greedy fucks that still want raises.
We saw that with GM and Chrysler. Hell, their bankruptcies were a little bit about money, and a whole lot about breaking contracts and commitments.
Welcome to the new world, when to compete, we need to compete with China.
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11-29-2011, 06:27 PM
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#8 | | RS Veteran
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Originally Posted by unit ok? they'll just get bailed out anyhow | Or bought out.
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11-29-2011, 10:46 PM
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#9 | | My homepage has been set to RS
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Originally Posted by Gridlock ^^There's that, and then there are the unions that bleed these companies dry. Yeah, its all good to get those pay raises and such when times are good, but then you sit down to talk when things aren't so good, and you get a bunch of greedy fucks that still want raises.
We saw that with GM and Chrysler. Hell, their bankruptcies were a little bit about money, and a whole lot about breaking contracts and commitments.
Welcome to the new world, when to compete, we need to compete with China. | i do agree but when inflated unions are the status quo in the industry and everyone has them u need to offer something better. then again the article basically says that almost all airlines are bankrupt, so clearly its the industry that needs to change, not just the players in it hahaha. fuck i hate unions. Posted via RS Mobile | |
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11-29-2011, 11:11 PM
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#10 | | I WANT MY 10 YEARS BACK FROM RS.net!
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| Quote:
Originally Posted by AAnthony Declare Bankruptcy
Get rid of the Union
Hire non unionized workers
????????
PROFIT Posted via RS Mobile | time to start sterling cooper draper pryce
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11-30-2011, 12:28 AM
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#11 | | My homepage has been set to RS
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Originally Posted by StylinRed sounds like the CEO that is "retiring" has something the board cant deal with (morals/ethics) | Probably something like
Imma get paid fat already, ill retire before shit hits the fan and leave with a even FATTER company pention plan 
__________________ Quote:
Originally Posted by getalove i took a shit in the shower and i tried to use my heel to push it down the drain | | |
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11-30-2011, 03:25 PM
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#12 | | Waxin’ Punks
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AA is the worst airline I've ever flown with. Posted via RS Mobile | |
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11-30-2011, 03:43 PM
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#13 | | 14 dolla balla aint got nothing on me!
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^ Delta Airlines is probably one of the worst as well. My girlfriend flew with them last year and they mess up every single step of the way.
She ended up stranded in 3 different airports in Montreal, JFK and another one in NYC. Her trip was 4 days ended up almost a week of nightmares. Not to mention a lot of hidden charges and bullshit services.
If you had to ride Delta, you might as well rather drive.
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11-30-2011, 04:25 PM
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#14 | | Captain Happy Bubble is my Homeboy
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^
AA airline isnt that bad.. never have any problems with them when flying down to the states.
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11-30-2011, 04:52 PM
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#15 | | I contribute to threads in the offtopic forum
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Originally Posted by Nodnarb AA is the worst airline I've ever flown with. Posted via RS Mobile | I think most canadian or american airlines are very sucky compare to asian airlines.
Flight attendents are overweight and take up the isle when you have to shimmy pass them. They are usually old lady who are grumpy and impolite, like " sit down" " put on your seatbelt"
Why are they so grumpy, management sucks that bad?
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12-02-2011, 06:17 AM
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#16 | | Captain Happy Bubble is my Homeboy
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Originally Posted by wasabisashimi Why are they so grumpy, management sucks that bad? | Because they know they can't loose their job in a union. Posted via RS Mobile | |
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12-02-2011, 07:05 PM
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#17 | | Rs has made me the woman i am today!
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American Airline companies are that great to begin with in terms of service. But I didn't see this one coming, from AA.
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12-02-2011, 11:02 PM
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#18 | | Banned (ABWS)
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| Quote:
Originally Posted by wasabisashimi I think most canadian or american airlines are very sucky compare to asian airlines.
Flight attendents are overweight and take up the isle when you have to shimmy pass them. They are usually old lady who are grumpy and impolite, like " sit down" " put on your seatbelt"
Why are they so grumpy, management sucks that bad? | nah asian flight attendents aren't that much better..
the first time I sat in those new cathay pacific business seats I was mind=blown at all the buttons and gadgets, and I had no idea how most of them work. Not only did the flight attendent didn't really help but she seemed pretty annoyed. Bitch this seat is worth 10G CAD I already didn't ask you for a BJ
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12-03-2011, 02:40 AM
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#19 | | Banned By Establishment
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not like theyd give you one ^
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12-03-2011, 02:46 AM
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#20 | | RS Veteran
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The biggest problem with American Airlines is that they really had no value to offer. An old, aging fleet and not to mention ghetto interiors.
Being part of the OneWorld alliance, this hurt them. Cathay and British Airways were far ahead of the game. American Airlines was living in the past. Star Alliance partner airlines were busy with new planes and an updated interior to most, if not all of their planes so loyal AA fliers had to find their new airline.
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12-03-2011, 03:15 AM
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#21 | | Banned By Establishment
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so dukes, when will you be back to chat  | |
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12-03-2011, 07:33 AM
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#22 | | Rs has made me the woman i am today!
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You guys seem to forget the free gropings by the TSA arn't exactly making the airlines more money.
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12-03-2011, 07:51 AM
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#23 | | OMGWTFBBQ is a common word I say everyday
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| Quote:
Originally Posted by wasabisashimi I think most canadian or american airlines are very sucky compare to asian airlines.
Flight attendents are overweight and take up the isle when you have to shimmy pass them. They are usually old lady who are grumpy and impolite, like " sit down" " put on your seatbelt"
Why are they so grumpy, management sucks that bad? | Who cares how fat they are? You expect flight attendants to look like models?
When I fly, I care about :
- Getting me to my destination on time
- Clean interiors
- Prompt service when I need it
I fly several times a year with carriers in Canada (primarily AC) and I have never received rude service. Sure, it hasn't always been service with a smile, but the service has been there whenever I needed it.
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12-04-2011, 10:39 PM
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#24 | | I contribute to threads in the offtopic forum
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Originally Posted by Tapioca Who cares how fat they are? You expect flight attendants to look like models?
When I fly, I care about:
- Getting me to my destination on time
- Clean interiors
- Prompt service when I need it
I fly several times a year with carriers in Canada (primarily AC) and I have never received rude service. Sure, it hasn't always been service with a smile, but the service has been there whenever I needed it. | I am sorry, but I like my service with a smile and not a bitchy look like they dont want to do this job. Their Fatness is my general observation!!!,
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