<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Plato90s:
The pilots' union is just posturing for their members.
Read carefully, and you'd see what they did was take AA's reported "losses" and compare that to the cash reserve. Then they extrapolate the # of days till bankruptcy.
Of course, if you look at AMR's SEC filings, they report far larger "losses" than cash outflow. So AMR could be losing $5M a day, including depreciation, etc... but only burning $3M of cash per day.</font>
APA is NOT posturing. AMR has a boatload of debt coming due later this year; if that debt cannot be refinanced, a Chapter 11 filing would be necessary in order to prevent the company's COH from falling to dangerous levels.
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