American Airlines Files For Bankruptcy

reply to post by Vitchilo


This is looking like the end of an empire.

My question is do you think other airlines will follow? Are we going to see an airline bubble burst?

It is well known that Airlines are hiking up their baggage check rates just to make a tiny profit. How long can that last?

reply to post by jjf3rd77

American Airlines was the only one of the major US airlines operating international routes not to file for bankruptcy after the September 11th terrorist attacks.

To late for that, they are the last one link

reply to post by davespanners


Woops thanks but I wonder if we will begin to see a break up of these large companies. Probably won't happen for five-ten years. As it only seems they are getting bigger with the merger of Continental and United and now who will go for AMR? Maybe US Airways I am hearing?

reply to post by jjf3rd77

....who will go for AMR? Maybe US Airways I am hearing?

AMR has a huge debt load....I saw $39.5 Billion, with cash on hand of just under $5 Billion. Like I said earlier, the Board of Directors seem to have been asleep here.

If you look at the tragic history of Pan Am Airways, you will see that is how United grew rapidly, by acquiring many of the best International route authorities. For this round, depending on how the Chapter 11 judge and Trustee are deciding things, hard to tell what way it might go.

Certainly a chance for some airlines that may be able to afford it, to embellish their International route structure, if the opportunity develops.....

....and, you can look at the various hubs of American Airlines, so see if any of those are plum picks. There are many possible moves, with a lot of pieces and potential players, here......

Originally posted by ProudBird
reply to post by jjf3rd77

 

....who will go for AMR? Maybe US Airways I am hearing?

AMR has a huge debt load....I saw $39.5 Billion, with cash on hand of just under $5 Billion. Like I said earlier, the Board of Directors seem to have been asleep here.

If you look at the tragic history of Pan Am Airways, you will see that is how United grew rapidly, by acquiring many of the best International route authorities. For this round, depending on how the Chapter 11 judge and Trustee are deciding things, hard to tell what way it might go.

Certainly a chance for some airlines that may be able to afford it, to embellish their International route structure, if the opportunity develops.....

....and, you can look at the various hubs of American Airlines, so see if any of those are plum picks. There are many possible moves, with a lot of pieces and potential players, here......

Im guessing by your avatar and your username you are either part of the industry work for the industry or like aviation or both. Do have any guesses where this could go? WIll US airways go for it? Or someone else?

reply to post by jjf3rd77

Do have any guesses where this could go?

I've seen and lived through the turmoil in the airline since the early 1980s. But, although I've guessed a lot, they don't always come out correctly!

The BK courts and Trustees will be a factor that's hard to predict, without a lot of insider knowledge. Same for the other Major airlines, and what their finances will allow. I can say most likely that the Continental/United merger will keep them occupied....though, the Operating Certificates are due to be combined, finally, on January 1st 2012..so far. The situation in O'Hare, both big hubs for AAL and UAL, might mean (if AAL starts fare wars) some hurt on United.

But, the combined company has some diverse hubs, now...which might soften any economic impact. As to what desires UAL might have on any of American's routes....doubtful, in my opinion. One thing is, even getting the routes, that still leaves you short of equipment to fly them...so then, it becomes a matter of "do you want any of theirs?" And, of course also, now you will need crews, so that gets messy too....this happened many years ago with Pan Am, as I mentioned. Left a lot of hard feelings.....many Pan Am employees were left behind, only a fraction went to merge into United,back then.

I've been through.....four mergers and acquisitions, all at the one company. They are usually only "OK" for those at the very highest seniority. Various degrees of "pain" then are meted out to most everyone else.

If USAir group jumps on any, keep in mind,they probably are already hurting from the America West purchase, some years back.

But of course, the plights of the rank and file aren't any concern to those executives in the "Puzzle Palace" (a joking reference to the inner boardrooms of the corporations, where these big decisions are made).

Theoretically, of course, the management's 'prime' concern is to the "shareholders"....as a publicly held company, they have that fiduciary responsibility, under the law. But, beyond that, there is also their own private and personal career advancement and profit potential, always driving their decisions as well.

Makes "guessing" fun, but hard to guess right.

I just thought of something else....someONE else....Richard Branson.

I'd keep an eye on him, and his Virgin America subsidiary here in the United States. He's operating that as a U.S. corporation....and, he certainly has loads of cash, I would "guess"....

reply to post by ProudBird


well thank you for your insight sir, and if you would like to talk more about the industry I am very eager to learn. I have added you as a friend and could always pm me. it seems like you have some experience working in it or something and am always interested in hearing people's personal business stories. I am very interested in all aspects of the business world from tech to aviation and everything else.

reply to post by jjf3rd77


If people would stop going on useless vacations there could be one. Why fly when you can rent a Mercedes S-class and go on a glorious road trip?