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Thursday February 23rd 2012
You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “American Stock Under $4?”.
Jack,
You can trash APFA all you want, but you sound like a resentful former TWA flight attendant. AA would never have bought TWA if your former employer wasn’t a financial disaster itself. Funny how you TWA F/A’s thought AA was your night in shining armour until you didn’t get your bidding seniority. I guess being at the top of the pay scale wasn’t good enough. You really should try to move on.
Here is another interesting outlook..
http://www.dailyfinance.com/2011/08/18/these-3-companies-could-disappear-by-2020/?source=TheMotleyFool
patti
If you think I was a flight attendant then you know not of what you say.
My take on you is a staunch union member or union rep.
I was a mechanic and inspector. I am 72 yrs. old and only wish to try to enable you people from the many years of wisdom I have gained being at TWA.
Many of you post what can we do? As individuals, NOTHING!!
That is why you have a union. What did the I.A.M. do for me? NOTHING. Contracts were years late. Wages reduced and pensions frozen. When contracts were signed I would check your contract book. Your contracts were always better.
The fastest way to resolve your disputes, wages and grievances is to propose a ballot vote on lowering your union dues. That’s right!! Take it or leave it.
You see, there is no reason to rock the boat if your getting good wages. The same for the good wages the AMR ceo and board are getting. They gain zero if they pay you more. Always follow the MONEY!! Union and company.
ps. I volunteered to speak to the TWA flight attendants regarding them getting the I.A.M. to represent them. They refused.
American Airlines Raises the Barre with Ballet Hispanico Sponsorship
10:00a ET September 7, 2011 (PR NewsWire)
American Airlines has signed a cultural partnership agreement with Ballet Hispanico to become the Official Airline of the leading Latino dance company in the United States. Ballet Hispanico, which seeks to explore, preserve and celebrate Latino cultures through dance, has performed for more than 2 million people with a repertory of more than 100 works.
Because American Airlines has been a strong supporter of New York’s arts and cultural community, as well as its Hispanic communities, for decades, it is fitting that American and Ballet Hispanico are joining in this valuable partnership. As the Official Airline of Ballet Hispanico in New York, American Airlines will receive visibility and signage throughout the performances that are part of the 2011-2012 season.
This should help the employees alot..lol
American Airlines Partners with Choir Academy of Harlem
9:30a ET September 8, 2011 (PR NewsWire)
American Airlines, which has served the New York market for more than 80 years, has formed a partnership with the Choir Academy of Harlem through the PENCIL program. PENCIL builds and supports customized relationships between business leaders and principals to inspire innovation and transform public schools. Choir Academy, located in New York City, serves students in grades six through 12 with programs in three music majors – choral music, instrumental and dance.
To kick off the school year, American donated 36 recycled and refurbished computers, along with printers, monitors, mouses, and cables, to the faculty and students of Choir Academy. The computers will allow the teachers to implement digital music technology programs, and access to the Internet will allow students to research colleges and prepare for standardized tests.
AMR 9/12/11 $3.22
Getting close to a buying opportunity?
Hmm – It is getting close, There are some definite hazards still. We are clearly in the gambling zone because nothing has really changed. In fact August traffic was off more than some other airlines. Couple that with the large number of early retirements reported on Yahoo finance, and things could still be getting worse. AMR representatives told Yahoo Finance that the Pilot retirements would not cause problems. Reports of cancelled 777 flights are appearing on several social media sites. It can’t be cheap to park a 777 and tell 200 plus people to go home.
WASHINGTON — It’s not just millionaires who’d pay more under President Obama’s latest plan to combat the deficit.
Air travelers, federal workers, military retirees, wealthier Medicare beneficiaries and people taking out new mortgages are among those who would pay more than $130 billion in government revenues raised through new or increased fees.
Airline passengers would see their federal security fees double from $5 to $10 for a nonstop round-trip flight and triple to $15 by 2017, raising $25 billion over the coming decade. Federal workers would face an additional 1.2 percentage point deduction from their paychecks to contribute $21 billion more for their pensions over the same period. Military retirees would pay a $200 fee upon turning 65 to have the government pay their out-of-pocket Medicare expenses.
AMR credit outlook downgraded at Moody’s
8:05a ET September 20, 2011 (MarketWatch)
WASHINGTON (MarketWatch) — Moody’s Investors Service downgraded the credit outlook for American Airlines parent AMR Corp. to negative as it takes on more debt to modernize its fleet. Over the medium term, AMR earnings are likely to remain weak because of the high cost of jet fuel and potentially tepid growth in travel demand, the credit-rating service said late Monday. With few assets left to tap for financing AMR will likely rely on its unrestricted cash balance — $5.2 billion as of June 30 — to help meet a portion of the $3.1 billion of debt due through year-end 2012. Accordingly, that could leave the balance at below $4 billion by the end of next year.
With few assets left to tap for financing AMR will likely rely on its unrestricted cash balance and employee union contracts……
American Airlines-$1.96 share 10/3/11
Forget what I said a month ago or so. The best way to play the stock is to short it. That means you are betting that it goes down & if it does you make money. Read below….
Unlike many analysts today, I believe an AMR bankruptcy is inevitable,” said Bob Herbst, an independent airline analyst and founder of Airlinefinancials.com. A court-supervised reorganization is likely within the next two to three quarters, he said.
The Fort Worth, Texas-based carrier has been in negotiations with unions representing its pilots, flight attendants and ground crews for more than four years.
Did that say 4 yrs.?
Great unions…
The real decline in AMR is the way the industry is structured. Any time a NEW airline wants in they pay their employees less. They start off with no union and no contracts.
What Bo should do for you is keep any NEW start ups out of the competition. You paid enough to him from your union dues. Get your monies worth.
2nd thing he should do is revise the cooling off period so you do not wait years for your money and a contract.
3rd thing that needs to be done is not sign a contract that does not have a cost of living increase clause.
After 34 yrs. at TWA I get a $721 month pension. It never adjusts. 30 yrs. fighting the I.A.M. for the cost of living features equaled ZERO increase.
The over under has been moved from $2.00/share to $1.00 per share as we learn about AA playing shell games with engines in storage, aircraft off the books, and moving money to other companies held under a different stock symbol. At this point, Jack you are probably right about the short. I don’t think the creditors will allow for a bankruptcy as they are becoming aware of the shell game. If they are protected with shares in the other companies, then AA will file as soon as they have employee contracts tied up and can blame the employees. Look at the media for Eastern and Continental. It wasn’t bad management, it was the Mechanics at Eastern that caused the liquidation. The 1983 bankruptcy was a result of “all labor unions” and the Pilot Strike is commonly thought to have been the issue at Continental in 1983 even though it occurred after the bankruptcy as the Pilots protested their court appointed pay.
AMR $1.91 share 11/15/11
Pilots contract stalling shares. The pilots will settle
so we should have a little pop. Enough to make a few bucks anyway…
Go unions…….Kill the company.
Editor
As of today, 11/21/11 AMR – $1.71 sh.
No pilot contract after 5 yrs.? What has the union been doing all these years. You paid for Obama now use him!!!
If it was like my I.A.M. they are living high off the hog with payed for food and lodging and expenses. Your dues money.
Ask yourself. Are you better off now then you were 5 yrs. ago?
GERARD ARPEY AND HIS BAND OF CRIMINAL SENIOR MIS-MANAGERS RAPED THE COMPANY OF HUNDREDS OF MILLIONS OF DOLLARS THAT WENT INTO THEIR PERSONAL BANK ACCOUNTS WHILE ‘LEADING’ THE COMPANY TO FAILURE. THEY STOLE THAT MONEY, THEY DID NOT EARN IT. THEY ARE LIARS AND THIEVES. THEY WERE NOT HELD ACCOUNTABLE TO ANYONE. WHEN THE PILOTS SCREW UP, AS THESE IDIOTS IN MIS-MGMT HAVE DONE IN THEIR ‘JOBS’, THEY, AND THE ENTIRE PLANE LOAD OF PASSENGERS DIES, OFTEN, SPECTACULARLY, VIOLENTLY, AND HORRIBLY, BY THE GRUESOME EFFECTS OF SUDDEN DECELERATION SYNDROME (HIGH G IMPACT), AND QUITE OFTEN BEING SET ON FIRE AT THE SAME TIME. WHEN A BUNCH OF EFITE PUNK-ASS DRAFT-DODGING WHARTON AASHOLES SCREW UP, THEY HAVE A NEW “JOB” THE NEXT DAY, NEVER LOOKING BACK AT THE CARNAGE AND HUMAN SUFFERING THEY HAVE CREATED. THE 35 SUICIDES AT TOXIC AAIRLINES IN THE LAST TEN YEARS ARE ON THEIR SOULS FOREVER. WELL, SOMEDAY, THEY WILL PAY THE PRICE, EITHER IN THIS WORLD OR ETERNITY, BUT THEY WILL PAY FOR THEIR IMMORAL RIDICULOUS GREED, ARROGANCE AND INCOMPETENCE.
At this time it is clear that AMR had planned to use bankruptcy regardless of union agreements. Since two of the three unions had offers from AMR for small raises in exchange for productivity increases, it is clear that labor wasn’t the only thing that management was paying attention too. With a significant shortage of pilots beginning in 2015, AMR and all the majors airlines are about to find themselves in new territory.
The recent Quantas lockout was about the exact same issue, jobs and use of off shore employees. AMR can now unwind some very expensive leases with ERJ airplanes and push those pilots into American in order to delay the decrease in the the pilot population.
The big issue at AMR is leadership. Gordon Bethune led Continental out of a similiar situation. Can Mr. Horton do it? The playbook is simple, cut executive pay, stop bonuses until employee receive theirs first and genuinely lead from the top. Mechanics were the supposed end of Eastern Airline, but employee departures began the day Mr. Lorenzo took over. Pilots who crossed the lines “saved” Continental according to some. Where will those pilots come from now? The number of new commercial qualified pilots pales in comparison to the number of pilots approaching mandatory retirement at 65. Mechanics are in a similar situation as trade schools produce fewer qualified Airframe and Power plant licensee’s each year.
Mr. Horton has his hands full and like many analysts, We will be looking at Mr. Hortons direction as a leader. Without leadership from the top, AMR is not worth the paper the stock is written on.
When Allan Mulally took over at Ford, he showed vision and direction. More importantly, he showed leadership when stayed the course while others said it couldn’t be done. We called Ford a buy then, and believe it is still a long term buy/hold. Keep an eye on what Mr. Horton says and does before writing off AMR.
Bet on leaders, company’s need them.
Ed.