Originally Posted by
jman4l
Only $7MM of that loss was real money. The rest of it is paper losses due to bankruptcy proceedings.
I really think the pressure will be on AA and maybe even CO next year since they are the only legacies that hasn't reduced their costs in a bankruptcy since 9/11
I think you're too pessimistic about AA and CO. CO decimated their employees in their two previous bankruptcies and a couple years ago, CO was successful in imposing even more wage concessions on everyone but the FAs.
In 2003, AA rammed $1.8 billion of annual wage concessions down their employees' throats (all but $200 millon of that was from union-represented groups). Doing that kept AA out of bankruptcy, which itself is very expensive (UAL spent more than $660 million on lawyers, accountants, investment bankers, consultants and others for its Ch 11 case). AA, on the other hand, had that $660 million that UAL spent on its legal and other costs during its bankruptcy to contribute to the AA pension plans instead.