AMR tumbles more than 10% after pilot contract proposal
Nov 16, 2011, 2:02 pm
#46
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While I agree with you and AAExPlat, I doubt that most of the executives would agree to new employement contracts to make the adjustment. This doesn't have as much to do with them working for AA as my experience with executives "forced/asked" to sign new employement agreements.
Nov 16, 2011, 2:20 pm
#47
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I have agreed with you for some time on this issue, but I am beginning to reverse my position. I think we might be at a point where management could give themselves and board members voluntary paycuts.
It is the only way to gain a chance of consensus with the unions, and beside potentially helping AA financially, it would also be a potentially helpful bargaining chip in the bargaining process...
It is the only way to gain a chance of consensus with the unions, and beside potentially helping AA financially, it would also be a potentially helpful bargaining chip in the bargaining process...
Now maybe it can be renegotiated during the BK process, but that's a different situation.
That being said, A few people on the top could take a pay cut or even a $1 salary such as Cisco's John Chambers did back during the dot.com bust (but was rewarded later with good options). I think that would certainly improve "good will" and would certainly look good in the media.
Nov 16, 2011, 2:36 pm
#48
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Nov 16, 2011, 2:42 pm
#49
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I bought AMR today because it was at a low today at 1.8/share.
Nov 16, 2011, 2:52 pm
#50
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Nov 16, 2011, 4:12 pm
#51
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AA is a stock trading at $1.80 with a $-2.93 EPS and a book of $-14.42 per share, along with cash flow of $500m and levered free cash flow of $-1.27. Me thinks it is time to go ch 11, so that ch 7 does not happen all of a sudden. In my happy dreamtime fairyland AA would file a pre negotiated Ch 11 next week, and be acquired by BA for $1 next week with a new pilot contract.
Nov 16, 2011, 4:13 pm
#52
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Nov 16, 2011, 6:02 pm
#53
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I have no sympathy for the pilots, flight attendants and other work group demands for more while the company is losing money every quarter. I also believe that management should take a significant salary cut as well as forgoing bonus payouts until the company returns to sustained profitability. That being said, if labor does not realize the dire condition and withdraw the increase demands, I now support AA using chapter 11 to rework the labor cost component.
Nov 16, 2011, 7:58 pm
#54
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Then management should realize that they are in a lose/lose situation and may lose again if another owner (and that could be any private equity or investor group wanting to buy the airline out of bankruptcy) comes in and throws everyone else out. Also, employment contracts mean nothing once a Company has filed for Chapter 11.
Yes, someone may lose $10M in value, but if you still walk away with $5M... oh well.
Also, to take the view point of anyone who has an employment agreement... the company wasn't forced through duress to offer an employment agreement to anyone. Stupidity or negligence on the part of the "independant" compensation committee isn't an employee's fault. It's the shareholder's fault for re-electing the same people over and over....
Nov 16, 2011, 8:03 pm
#55
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Show me the bonus payments please... just because some executives at crappy companies get bonus payments. Doesn't mean that every corporation is paying out bonus checks every year.
Nov 16, 2011, 8:14 pm
#56
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In the late 90s I wanted UA to acquire US and to merge - failed. I fgot to move my miles when I had the chance.
2 years ago I waited for US to acquire DL and to merge - failed. At least saved my NW perks.
Last year I waited for US to acquire UA and to merge - failed. I was ready as CP to lord it over the 1Ks (very humbly of course)
Then I waited for US to acquire AA and to merge -.....
Come on Doug, put in a hostile offer and merge! Perhaps SW will be the white knight this time (An All Texas acquisition and merger Superbowl).
UA/CO is getting too big. Star is too big.
Combine DL US and AA into 1 decent carrier!
We can have a choice of DLUSAA, UACO and SWA and for alliances, Star and oneworld/skytem (onesky or Worldteam)
PS
Dont forget Arpey and Co-file Ch 11 soon, as soon as my LT status tags are here!
Nov 16, 2011, 8:36 pm
#57
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People whose jobs are 'protected' in one fashion or another generally do not know or care what it's like for the rest of us, who have to live in the real world.
Typical management advice from the real world: "The Secret to Having Happy Employees? Fire the Other Ones"
http://finance.yahoo.com/career-work...eer-leadership
Typical management advice from the real world: "The Secret to Having Happy Employees? Fire the Other Ones"
http://finance.yahoo.com/career-work...eer-leadership
Nov 16, 2011, 9:00 pm
#58
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Nov 17, 2011, 9:54 am
#59
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AA is worth less than half of what Airtran was when WN bought it.
C'mon, WN, take another bite!
C'mon, WN, take another bite!
Nov 17, 2011, 10:03 am
#60
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