Reply With QuoteI hope American makes it through it's bankruptcy; more efficient and stronger.
But by the looks of it's rapid expansion, it seems Spirit Airlines is wasting no time in positioning DFW to become a future hub. They already list DFW as a focus-city.
AMR jobs cuts will be blow to Dallas area
BRENDAN CASE The Dallas Morning News
bcase@dallasnews.com
Published: 01 February 2012 11:18 PM
http://www.dallasnews.com/business/a...allas-area.ece
The North Texas economy is set to take a wallop as a marquee employer cuts thousands of jobs.
AMR Corp.’s plan to slash at least 13,000 jobs companywide could mean 3,000 to 4,000 job losses for local employees, estimated economist Robert Dye. Ar few thousand more jobs could be lost locally in the coming years because of ripple effects from the AMR cuts, he said.
“It represents a significant cutback by a major employer, so we have to take this very seriously,” said Dye, chief economist of Dallas-based Comerica Bank.
AMR, parent company of American Airlines and American Eagle , has about 25,000 employees in the Dallas-Fort Worth area.
It’s too soon to gauge the ultimate impact of the cuts outlined Wednesday, said Ed Martelle, a spokesman for American.
“Any suggested number may be different at the end of the negotiations and the end of the Chapter 11 process months from now,” he said in an email.
...
I hope American makes it through it's bankruptcy; more efficient and stronger.
But by the looks of it's rapid expansion, it seems Spirit Airlines is wasting no time in positioning DFW to become a future hub. They already list DFW as a focus-city.
American Airlines’ parent company is open to merging with another airline at some point in the future, and Tempe-based US Airways could be that airline.
http://www.bizjournals.com/phoenix/n...at-merger.htmlLooks like US Air is going to be able to use those new internet domain names it recently bought.CEO says American not opposed to merger -- at some point
Mar 15, 2012 (Chicago Tribune - McClatchy-Tribune Information Services via COMTEX) --
American Airlines, which is undergoing bankruptcy restructuring, is open to merging with another airline -- just not right now, American's CEO, Tom Horton, said Thursday.
Though he didn't name another airline -- US Airways has been the most talked about possible partner -- Horton said mergers have been good for the industry.
"We're not opposed to consolidation in the industry, and I wouldn't rule it out for American as things develop," Horton told the Tribune editorial board Thursday. However, the timing is not right, he said. "I think it would be tremendously unwise to get distracted with talk of combination inside a restructuring."
http://www.equities.com/news/top-fin...438876&cat=fin
AA is burning through the cash it had when it filled for bankruptcy so fast a buyout is almost inevitable.
"Liberalism: Moochers Electing Looters to Steal from Producers."
Get real. They've got 4.1 billion in cash with another billion in short term investments. Most of their loss this quarter was due to bankruptcy costs. The merger isn't going to happen.Originally Posted by TexasPlus
Merger (not a buyout) is going to happen with US. It must happen because there is too much excess capacity in our domestic air system for long term sustainability. People will lose their jobs and the price of travel will go up, but this is needed to keep the industry going into the future.
AA will retain the name, headquarters, Frequent Flyer program and Global Alliance. US management will get to run the show. They will spin it when it happens as them creating the world's largest airliner, but capacity will be cut that pulls them down to #2.
The big losers in this will be Phoenix and Star Alliance.
Totally, it's not as much about the individual carriers as it is about the global alliances. The North American hub systems will begin to realign based on 1) facility attributes and 2) population/business center origin and destination demand. It remains to be seen whether DFW or ATL will emerge as host for two of the global alliance hubs. Simply because AA has multiple domestic hubs, Delta is primarily in Atlanta, and North Texas facility is exceptionally more flexible for expansion, I think we'll eventually see SkyTeam and OneWorld at DFW Airport.
This is why I think a deal with US Airways, regardless of structure or timing, does not make sense. US Airways would get access to international routes and alliances, but at the cost of a pile of cash and a complete basketcase of a domestic network. They'll bleed for a decade (the same way AA did after acquiring TWA) before that is all ironed out and may end up roughly where AA is now. I couldn't say what does make sense for US Airways.
The TWA deal will look like a walk in the park in comparison. The resulting corporate cultural clash will be spectacular. Remember the current US Air is the result of many mergers/buyouts over several decades. The in fighting that stills goes on within US Air between the various employe groups would blow most peoples minds. I have friends at US Air and AA, and friends that used to work for US Air and America West. The stories they tell....wow... bring that mix together, it will not be pretty for a long time.
"Liberalism: Moochers Electing Looters to Steal from Producers."
Things are about to get very ugly.The parent company of American Airlines Inc, AMR Corp has commented on Thursday, that during Chapter 11 proceedings in a bankruptcy court it is preparing to void union contracts within one week unless the unions’ labor proposals were changed radically. Harvey Miller, representing AMR Corp told in the court hearing in New York that there was no basis to expect “real forward movement” in obtaining union concessions and avoid rejecting collective bargaining agreements.
The lawyer representing AMR Corp stressed that time is of the essence and said, “Each day AMR is unable to remedy its cost structure puts the company further behind its competitors.”
The official creditors’ committee of AMR supports voiding the union contracts if a deal cannot be reached immediately.
The union issued a statement on Thursday in response to Miller’s comments and said the changes alluded to cannot be realized unless AMR compromises on concession demands that are totally divorced from going market rates.
The union statement mentioned “New aircraft, lie-flat seating and elegant first-class meals do not make an airline … it takes 80,000 workers. Should American continue to forget that fundamental principle, it will be left with only the shell of a company.”
The Transport Workers Union of America, which represents most ground workers at AMR said its lawyers were preparing to defend the interests of its members in court, if such became necessary.
James Little, the president of TWU said in a statement, “We’ve always been prepared to fight for our members, either be reaching an agreement or going to court. We are prepared for the eventuality.”
Gregg Overman, spokesman of the Allied Pilots Association said his association wanted to reach an agreement and would oppose a company move to use the bankruptcy court process to end union contracts.
On Wednesday, American Eagle, the company’s regional carrier unit, said it needs to gain $75 million in labor-related savings.
At Thursday’s hearing, the airline received permission of the court to retain its exclusive rights for proposing a restructuring plan up to September. This precludes creditors and potential acquirers from immediately pursuing their own proposals.
AMR has said that it is looking forward to cut at least 13,000 jobs under Chapter 11 protections and save some $2 billion, and needs another $1.25 billion in labor-related savings. The company is also actively seeking to freeze pension obligations.
http://www.jdjournal.com/2012/03/23/...-airlines-inc/
"Liberalism: Moochers Electing Looters to Steal from Producers."
Is this the last of the airline industry union worker groups to face the fact that customers are no longer willing to pay for retirement plans?
US Airways trying to acquire AMR:
http://bottomline.msnbc.msn.com/_new...-of-bankruptcy
Ugh. Shoot me now. US Airways is one of the worst airlines I've ever flown. I can't wait for Love Field to open up in 2014.
If US Air acquires AA, doesn't all the leverage with unions and suppliers vaporize? That direction seems foolish. You apply your credit backing to someone else's debts and then have to manage their problems throwing away your temporary advantage. AA needs to be fixed and rationalized and then shopped.
I wonder where they would locate the HQ? This would be a huge blow to FW and the region if they packed up and moved to Phoenix.
A US and AA merge has been speculated for some time. All of the airlines have lawyers talking to AA creditors hoping complicate things for AA in bankruptcy. Never say never but AA is probably too big for US to acquire in one bite.
^I don't know about that... In 2010, US Air carried 45M domestic passengers, AA carried 65M... in terms of revenue, AA is #3, US Air is #5.
Also, the US Air CEO has been on record saying that the US airline industry needs more consolidation, AA is in bankruptcy and US Air has few strategic alternatives.
And looking at their financials, it's not out of the question that they couldn't negotiate something with AA's creditors, perhaps with other equity partners, while saying that further industry consolidation will help both airlines compete profitably going forward.
I realize mergers ain't all they are cracked up to be, but I would take this possibility seriously.
^Hmm... More googling... Well on the other hand, most recently US Air's CEO has been saying they can make it on their own...
I think all the airlines have switched over to 401Ks/profit sharing plans for new hires. Some have been that way since they started.
Now you have the dilemma of the folks that worked for decades contributing to a pension plan. Its a hard pill to swallow that after 20-25 years of working towards a goal you are near destitute. The unions pushed for more and more, promised the members the moon. Now we have just one more example where socialism has failed, in this case unionized socialism.....at some point all forms of socialism have/will collapse under it's own weight. AA will now kick the can down the road, transferring their collapsed pension plans to a bigger socialized entity....its only a matter of time before that socialized entity also collapses under it's own weight.
"Liberalism: Moochers Electing Looters to Steal from Producers."
Not getting as much money as you planned is not the same as being destitute. It is the pilots that take it on the chin when PGBC takes over since they have a cap, not a pro rata cap. Having gone through a conversion to a cash balance plan, the stunning item is how little money is "there" now vs. money promised, even in a fully funded plan as ours was. The assumptions of unending 8 % returns were the real drivers to supposedly fund the plans. The balance calculations get reviewed by Labor Department and were correct. It is where the fiction of compounded interest hits reality. No defined benefit plan filled with Boomers is viable. Even law firms cannot get it right. Humans cannot Plan 35 years ahead and basing your future on us having that capability is foolish.
Merger story du jour: British Airways parent looking into American Airlines investment
ByTerry Maxon/Reporter
tmaxon@dallasnews.com | Bio
10:58 AM on Mon., Mar. 26, 2012 | Permalink
The Sunday Times of London reported Sunday that International Airlines Group, formed in the merger of British Airways and Iberia, is considering buying a stake in American Airlines.
The Times is suggesting that IAG may take a stake or participate in a venture with private investment firm TPG, rather than let American fall into the hands of a competitor.
The Financial Times on Sunday said BA would soon hire an advisor to look into a potential investment.
American spokesman Tim Smith, asked about the situation, stated:
"We have no comment on the report, as we don't comment on rumor or speculation. IAG has been a very supportive partner throughout this process and has consistently expressed a strong vote of confidence in our business plan for a successful restructuring. We appreciate that support."
British Airways and American Airlines are founding members and key players in the Oneworld alliance. American in fact is the only U.S. member of Oneworld. It has no Canadian members, and its only Mexican member, Mexicana, parked its airplanes in August 2010.
US Airways is very desirous of a merger and has acknowledged that it has retained advisors to look into a potential deal. Bloomberg reported last week that US Airways was talking to unions; a union official told us last week that the unions would have to listen if American proceeds with plans to reject the unions' current contracts.
US Airways is a member of the Star Alliance, but its major U.S. member is United Airlines . The third alliance is SkyTeam, with Delta Air Lines as its U.S. member. Delta has reportedly looked into buying American or parts of American.
http://aviationblog.dallasnews.com/a...british-a.html
I'm beginning to think the timing this last legacy carrier bankruptcy is a best case scenario for AA. Clearly the global alliance will not be broken, just as it was not broken when AA floated a billion dollars(+/-) to Japan Airlines.
As expected, AA has taken the next step.Published : Tuesday, 27 Mar 2012, 3:16 PM CDT By DAVID KOENIG AP Airlines Writer
DALLAS - American Airlines is asking a bankruptcy judge to break its union contracts and impose cost-cutting terms on workers.
American said it filed the request Tuesday in U.S. bankruptcy court in New York.
The airline is making good on a threat last week to seek to throw out the labor contracts, if it couldn't negotiate concessions from unions for pilots, flight attendants and ground workers.
American plans to cut 13,000 jobs and reduce wages to emerge from bankruptcy with lower costs. The company says its annual labor costs are hundreds of millions of dollars higher than those at rivals such as United Airlines and Delta Air Lines.
Thomas W. Horton, the CEO of American and parent AMR Corp., said in a letter to employees Tuesday that the company was trying to speed up the bankruptcy reorganization process and avoid the chance that American could be sold or broken up. He said that AMR's mounting losses and the rising price of oil added to pressure to act quickly.
Horton said he will continue to negotiate with the unions, but American must cut spending and job must be cut. "Failure to make the right changes is failure," he said, "and that puts all jobs at American at risk."
Union officials have charged that American never intended to bargain over cost-cutting -- that it planned all along to use the bankruptcy process to throw out contracts that they bargained for.
Bankruptcy law lets companies walk away from union contracts if they show that they can't succeed under those contracts. Merely asking a court to throw out labor contracts gives companies leverage to pry concessions from unions. That's what happened with pilots at Delta six years ago.
James C. Little, president of the Transport Workers Union, which represents American's ground workers, said his negotiators were "still at the table in Dallas." If talks don't succeed, he said, "we will represent our members in court and explore all options."
AMR filed for bankruptcy protection in November after losing more than $10 billion since 2001. It wants to cut $2 billion in annual expenses, including $1.25 billion in labor costs.
The savings would come largely from cutting jobs and reducing pay and benefits. American wants to end restrictions in union contracts that prevent the company from outsourcing work done by pilots and mechanics. For example, it wants to hire regional airlines -- which pay pilots less than American does -- to do more flying.
Read more on myFOXdfw.com: http://www.myfoxdfw.com/dpp/money/am...#ixzz1qMC7a4Bv
"Liberalism: Moochers Electing Looters to Steal from Producers."
As usual from SWA leaders, just realistic appraisal of the situation, openly shared with everyone, without the spin others usually try to BS the world with.During a call with analysts, the CEO of Southwest Airlines Co. was asked how American Airlines' bankruptcy restructuring might affect Southwest.
Southwest has long enjoyed lower costs than competitors, which allowed it to attract customers by undercutting other airlines on fares. That gap has narrowed over the years, particularly as other big airlines have also cut costs.
American is trying to use the bankruptcy court to reduce its debt and cut labor expenses as United, Delta, US Airways, Northwest and Continental — the so-called legacy carriers — did when they went through Chapter 11 in the 1990s and 2000s.
One analyst asked if American might act in a way that hurts Southwest and the rest of the airline industry — presumably something like slashing fares to sell more seats and bring in short-term revenue.
Southwest CEO Gary Kelly pivoted instead to talk about how lower costs at American will make it a tougher competitor for Southwest. He said that will force Southwest to control its own costs, which have been rising.
KELLY: "The competition that we face in the future is different than the competition we faced over the last decade. The fact that legacy carriers including American will be more cost-effective — and at least in some legacy carriers' cases, that's translated into profitability — that makes them more formidable competitors.
"That doesn't really change our strategy per se, but it certainly imposes the right discipline on us. We've always taken the competition very seriously, we've always had an underdog mentality, and I do think that is the right outlook."
Speaking again about American, Kelly concluded, "I believe they will get their finances in order, they will get their costs down, and they will be a more formidable competitor because of that."
http://www.cbsnews.com/8301-505245_1...tougher-rival/
"Liberalism: Moochers Electing Looters to Steal from Producers."
I bet Pavlov would be proud of the WN fan club. Just like clockwork. Truly amazing!As usual from SWA leaders, just realistic appraisal of the situation, openly shared with everyone, without the spin others usually try to BS the world with.
US Air and the unions announced their agreement this morning.
http://aviationblog.dallasnews.com/a...ons-us-ai.html
I think this will be a DISASTER. I have been an AAdvantage member for the last 15 years and Platinum at minimum for the last 5. I will drop AA like a hot potato in 2014 if this merger goes through.
AA has some powerful allies that don't want to see this merger happen. Much more powerful than USAirways did when they got raided by America West.
The AA you knew is going away with or without this merger, the handwriting has been on the wall for sometime. No matter what the surviving AA entity is called, no matter with or without a merger, the post bankruptcy AA will be much more like existing LCCs than the old money looser of past decades in order to survive.
"Liberalism: Moochers Electing Looters to Steal from Producers."
I would be fine with that. I would also be fine with them merging with just about any airline OTHER than US Air. That's what bothers me about the deal.
Although, it is encouraging to know that they would still be based in North Texas and branded American Airlines...
http://aviationblog.dallasnews.com/a...be-called.html
Like all the radical changes the other legacies went through after their BK? Oh wait...
Not shown in the previous article, add a fourth union to the count.Shares in US Airways (LCC) rose 16% Thursday after TheStreet reported the carrier has been successfully gathering union support for its bid for bankrupt AMR (AMMRQ.PK) .
Shares rose steadily after the story was reported shortly after noon, and continued to rise after it was reported by other outlets.
The carrier has managed to win qualified backing for its takeover bid from four AMR unions, the Transport Workers, the Allied Pilots Association, the Association of Professional Flight Attendants and the Association of Flight Attendants, which represents flight attendants at American Eagle, according to people with knowledge of those discussions.
http://business-news.thestreet.com/d...opens/11501487
"Liberalism: Moochers Electing Looters to Steal from Producers."
And he would be equally proud of PuddinHead. Just like clockwork. Truly amazing! ;-)
PuddinHead will have to switch to the US Airways fan club here before long.
So little America West gobbles up two giants. Man that is going to be one messed up passenger experience.
http://www.huffingtonpost.com/2012/0...n_1440232.html
DALLAS -- UPDATE: CBS News is reporting that U.S. Airways has filed papers to begin the process of taking over American Airlines. U.S. Airways CEO Doug Parker disputed an earlier CBS News report that an agreement between the two airlines on a merger had been reached.
US Airways has struck deals with labor unions at American Airlines to win their support for a possible merger with American. The unions represent more than 50,000 workers including pilots, flight attendants and ground workers at American, the nation's third-largest airline. American and its parent, AMR Corp., are operating under bankruptcy protection.
Doug Parker, the chairman and CEO of US Airways Group Inc., said Friday that to win a merger with American, his company still needs support of AMR's creditors, management and board of directors. "But this is obviously an important first step along that path, and we are hopeful we can all work together to make this happen," Parker said in a note to US Airways employees.
Parker said a merger could save about 6,200 jobs at American, or nearly half the jobs that American wants to eliminate. He said he would keep both airlines' current hubs and planes to create a bigger company that could compete against United Airlines and Delta Air Lines. The three unions at American said in a statement that a merger with US Airways is the best way to fix American, which filed for bankruptcy protection in November. The unions oppose American's plan to cut 13,000 union jobs and sharply cut labor costs to return to profitability. American is seeking to throw out contracts with the unions that govern pay, benefits and work rules, and impose its own terms on employees.
US Airways and the unions said that they have agreed on terms for collective bargaining agreements if there is a merger between the airlines. However, no such deal exists.
Last edited by Alex Rodriguez; 20 April 2012 at 03:39 PM.
Why would the US Airways Unions allow themselves to be put into a situation where they will always be out voted by the old AA Unions?
Something is not quite right here.
Makes it easy for me to still keep flying Delta. I'll connect through Atlanta all day long to avoid anything to do with US Air.
If there's anything more poorly kept than AA planes with their dingy cloth seats, it the US Air planes some of which still have recognizable American West accents inside them.
Sent from my Galaxy Nexus using Tapatalk 2
+1
Yup, this may be the nudge that pushes me to SWA and giving up my non-stop flights. I would rather have a SWA layover any day than fly on US Air.
AA flight attendants protest at DFW in support of merger
by CYNTHIA VEGA WFAA Posted on April 23, 2012 at 12:02 PM Updated today at 3:53
PM
IRVING - Hundreds of flight attendants with American Airlines are spending their Monday
afternoon picketing outside Terminal D at the Dallas/Forth Worth International Airport.
Carrying flags and signs, the flight attendants are protesting what's happening at a New York
City Bankruptcy court.
"This is about our careers," said Liz Geiss, with the Association of Professional Flight
Attendants, near the picket line. "This is our livelihood and this is moving forward what we
have in the future."
Representatives from Fort-Worth based American Airlines parent company AMR are asking a
bankruptcy judge to grant permission to kill its labor contracts with three unions as a way to
emerge from bankruptcy profitably.
American Airlines believes terminating the contracts will help shave more than a billion dollars
in spending. The plan would also potentially include up to 14,000 job losses.
The loss of jobs alone has Dallas County Judge Clay Jenkins supporting the flight attendants'
protest. He said he supports the proposed merge plan by US Airways to keep jobs in North Texas
and not send them overseas.
"US Airs make good faith statements that they will work to try to keep the jobs here," Jenkins
said. "And they publicly said that of the 12,000 jobs that American wants to cut, they think
they'll only need to cut half those. Of the 2,500 flight attendants American wants to cut, they
said they'll cut zero."
Jenkins joined the picketers outside Terminal D at 11:30 a.m.
The flight attendants plan to demonstrate until 1 p.m.. They said they have given up enough over
the years to help American Airlines stay afloat. They said they have yet to regain the
concessions they made back in 2003, the last time they negotiated a new contract. They gave up
$1.6 billion in concessions at that time.
As a sign of mounting tension with their management, they openly endorsed a US Airways merger
plan as of last Friday. They believe they have a better shot at a brighter financial future with
US Airways at the helm.
American Airlines executives continue to say the airline's best interest lies in emerging from
bankruptcy as an independent airline.
American Airlines' three unions will have their chance to go before the bankruptcy judge in New
York City beginning May 14, with the judge likely to make a final ruling on proceedings in early
June
http://www.wfaa.com/news/local/Fligh...irways-merger-
148540305.html#
"Liberalism: Moochers Electing Looters to Steal from Producers."
Well, there may no be a merger agreement yet, but seems like the only question is whether or not to merge before or after the bankruptcy is complete. They'll keep the name American Airlines, and the HQ will still be in Fort Worth, most likely.... and hopefully the company can case off the 'management versus workers' debt along with the financial debt.
http://www.dallasnews.com/business/a...-to-a-deal.ece
By TERRY MAXON
11 May
Under pressure by rival US Airways Group Inc., AMR Corp. said Friday it has agreed to consider a merger while it is still in bankruptcy. But, in a written statement, the Fort Worth-based company said agreeing to explore consolidation wasn’t a promise to go ahead with a merger ... In addition, [US Airways] has lined up support from a number of investment analysts and industry consultants for a merger and has been talking to creditors to gain their support. US Airways issued a public statement Friday evening that it was “very pleased” that AMR will consider consolidation.
I was for the merger until I saw this in DCA this weekend.
US_Airways_Eagles_plane.jpg
Ouch... considering the current "Too big to fail" mentality, something tells me AA will get the resources it needs to stay functioning... time will tell.
http://lifeinc.today.msnbc.msn.com/_...one-in-13?liteBye, bye American -- and other brands that likely will be gone In '13
Each year, 24/7 Wall St. identifies 10 important American brands that we predict will to disappear within a year. This year’s list reflects the brutally competitive nature of certain industries and the reason why companies cannot afford to fall behind in efficiency, innovation or financing.
American Airlines will disappear in 2013 because of its inefficiency. It was the premier carrier in the United States for almost 30 years -- even surviving through periods when most other carriers went bankrupt. However, it lost its critical advantage of scale when Northwest merged with Delta and Continental merged with United. Within two years, American became a medium-sized carrier.
"I need no warrant for being, and no word of sanction upon my being. I am the warrant and the sanction."
~~
Ray Neidl, an airline analyst for New York-based Maxim Group, said the only potential snag in a US Airways-American Airlines merger is that the management of US Airways probably will end up in control of the newly merged airline. "We are not sure if AMR management is ready to accept that structure," he said.
http://www.latimes.com/business/la-f...,4227503.story
"Liberalism: Moochers Electing Looters to Steal from Producers."
Of American Airlines' possible merger partners, only one makes much sense
http://www.star-telegram.com/2012/07...-possible.html
Gives Pro and Cons on a merger with each of the candidates.In a meeting with its unsecured creditors committee, American outlined merger scenarios with US Airways, JetBlue Airways, Virgin America, Frontier Airlines and Alaska Airlines.
But analysts say only one makes sense. That's US Airways,
If the bankruptcy stuff has already cost AA $100 million, and a merger is just about a done deal, wouldn't it cost the resultant company less to put all the pieces together at once?
A merger before exiting bankruptcy I think gives more leverage to the acquiring company since its offer is mixed in with the offers on debt coverage. A judge decides. After bankruptcy, the non-US Air creditors, the likely future stockholders, decide for themselves whether to accept a merger. AA execs need to extract every last penny from the acquirer. Though it also personally benefits them, the execs need to exploit every advantage and let the market work. Inside bankruptcy too many cross currents at work especially with the unions.
Looks like AMR management's last chance to hold onto AA just flew away...American’s pilots rejected the airline’s final contract offer today, a “strong statement” that the union favors a merger with US Airways, according to Fred Lowrance, an Avondale Partners LLC analyst in Nashville, Tennessee.
Full Article@
http://www.businessweek.com/news/201...after-failures
"Liberalism: Moochers Electing Looters to Steal from Producers."
Nope, not really - plenty more to be settled in bankruptcy court. And even if a merger occurs, the AA brand will undoubtedly survive.
The more likely short term result is the judge rips up the pilots' current contract. It does give a PR black eye to AA. The pilots will still have to live with a lack of contract until a merger occurs. That event could take awhile. US Air also has not resolved its Air West pilot issues. Since I am not a pilot, I have no idea whether the contract terms were good. If the deciding reason was to tweak AA management, the action seems short sighted.
The bottom line is US Air now has the leverage with the court to make it happen.
The current AA management, hated by AA employees will be gone once US Air takes over.
As for the name, earlier in this forum I predicted that US Air management would keep the strongest name... AA, just as America West kept the US Air name when they took over US Air. Just as Continental did when they took over United.
"Liberalism: Moochers Electing Looters to Steal from Producers."
The APA just cut their nose off to spite their face. If the FA's vote down their contract the BK judge will throw out the current contracts for both work groups. Without contracts the importance of the unions on the creditors committee is diminished. The unions were the only friends US Air had on the creditors committee.
Flight attendants at American Airlines approve the company’s last contract offer, leaving only the pilots group without a ratified agreement
By Sheryl Jean
sjean@dallasnews.com
11:42 am on August 19, 2012 | Permalink
Flight attendants at American Airlines Inc. have approved the company’s “last, best and final” labor contract offer.
The Association of Professional Flight Attendants announced today on Twitter that 59.5 percent of its members voted in favor of the offer and 40.5 percent voted against it. Voting ended at 10 a.m.
“In light of last week’s announcement from the Creditors’ Committee, our bankruptcy team firmly believes we have achieved everything possible,” the APFA leadership team said in a statement.
The committee representing unsecured creditors in American’s bankruptcy late Thursday issued a statement saying that it would not support any changes of “additional economic value” to American’s unions beyond current proposals made by the airline. It also said that it had agreed to support the equity stakes and unsecured claims negotiated by American’s unions but only if each union ratifies a collective bargaining agreement.
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