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Eugene Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-29-11 06:38 AM
Original message
American Airlines' parent AMR files for bankruptcy
Source: CBS/AP

November 29, 2011 7:18 AM

American Airlines' parent AMR files for bankruptcy

(CBS/AP)

DALLAS - American Airlines' parent company, AMR, filed for Chapter 11 bankruptcy this morning.

AMR Corp. and AMR Eagle Holding Corp. says they filed voluntary petitions to reorganize.

It says the move is in the best interest of both companies and its shareholders.

American lost $868 million during the first nine months of this year, and was the only major U.S. airline to lose money last year.

-snip-


Read more: http://www.cbsnews.com/8301-500202_162-57332686/america... /
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Earth_First Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-29-11 08:26 AM
Response to Original message
1. Union busting...
On that point, AP adds "American says labor-contract rules force it to spend at least $600 million more than other airlines. That's partly a result of AMR avoiding bankruptcy last decade, while airlines like United and Delta were able to scrap existing labor contracts after filing Chapter 11."

The Times notes AMR "had been negotiating new contracts with its unions, talks that had stalled earlier this month when its pilots union refused to send a proposal to its members for a vote. Because federal bankruptcy rules allow companies to reject contracts, AMR may take a harder negotiating stance with its unions."

Reuters adds AMR "remains the only major airline (company) that still must fund worker pensions."
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CatholicEdHead Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-29-11 11:33 AM
Response to Reply #1
5. Yep, first thing I thought of this morning when I heard it on MPR
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Puglover Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-29-11 10:04 AM
Response to Original message
2. All they want to do is abrogate
the union contracts and stop funding the pensions. Motherfuckers.
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Populist_Prole Donating Member (774 posts) Send PM | Profile | Ignore Tue Nov-29-11 11:44 PM
Response to Reply #2
7. Yup-A-Roony! Seems to be the in-thing with airlines the last 10 years.
They'll just bargain in bad faith, then use the courts during BK to get what they want. Others have already.
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KeepItReal Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-29-11 10:06 AM
Response to Original message
3. They have the oldest airline fleet, charge fees for every little thing...
and don't stand out in terms of customer service in any way.

They can blame unions all they want. It's the management that is failing.

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cpamomfromtexas Donating Member (453 posts) Send PM | Profile | Ignore Tue Nov-29-11 10:54 AM
Response to Original message
4. Pilots are working at 1992 rates- No Shit, now their retirements are in doubt
How do I know?

I'm married to one and my brother is also a pilot here and I've checked the pay rates per hour. I also have lots of airline clients. The massive 23-40% paycuts since 2003 has cost us an unbelievable amount and AMR management has pissed it away on regional jets that no one wants to fly anyway and which are gas guzzlers in an attempt to steal jobs from the mainline pilots.

How many people can be gone from home for 1/2 day (or more) and lose the entire week's paycheck, because some fucker didn't fix the damn airplane? How about having to fly the high cost routes for per diem $40 a day, when breakfast alone costs that? It's a losing proposition, every pilot we know is saying fuck it, we'll go do something else.

I can't tell you how many times we lost pay because pilots at American don't get paid unless the airplane moves--even though they are required to be signed in 1 hour prior to takeoff, whether the airplane is actually legal to fly (maintenance issues etc very often delay this).

11 pilots from American have committed SUICIDE this year. That is 6 times the national average. Expect this to double in the next few months.

I say when this bankruptcy gets before the judge, there should be a requirement that at least 2 positions be allocated for pilot representatives. Past President Lloyd Hill would be excellent for this role. AMR was scared shitless of him because he is always the smartest guy in the room. He always thought long term (because pilots are basically married to their airline, unlike other employees at the company).

Currently, the pilot union (Allied Pilots Association -currently run by little sissy boys that probably peed their pants this morning). AMR has already bought off or bullshitted the current president--Dave Bates-remember that name, he isn't qualified to shine the past president's shoes. All of them kept trying to tell the pilots that "they needed to save the airline" so they wouldn't demand to have their pay restored from the massive cuts of 8 years ago (after no real raises for over a decade-which is how they got to NO RAISES FOR 2 DECADES!)

Everyone else on the property gave some in the cuts of 2003, but they had always gotten raises and were working from industry leading contracts at the time, not the pilots.

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Sen. Walter Sobchak Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-29-11 12:07 PM
Response to Original message
6. Hooray, another zombie airline
I wonder how much monopolist bullshit American will get away with while they are under bankruptcy protection. United leveraged bankruptcy protection to wage a costly war of attrition on upstart Independence Air who has the nerve to intrude on their fortress hub at Dulles. Such antics should result in an immediate trip to Chapter 7 but it seems Chapter 11 has come to be recognized as a mainstream airline business model.
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