AMR Corp files bankruptcy in New York
 

Well done... What a sorry state.

AMR CorpConfirms earlier reports, AMR and American Airlines file for Chapter 11 reorganization
- AMR Corporation ("the Company"), the parent company of American Airlines, Inc. ("American") and AMR Eagle Holding Corporation ("American Eagle"), announced that in order to achieve a cost and debt structure that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience for its customers, the Company and certain of its U.S.-based subsidiaries (including American and American Eagle), today filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York.
- AMR's Board of Directors determined that a Chapter 11 reorganization is in the best interest of the Company and its stakeholders. Just as with the Company's major airline competitors in recent years, the Chapter 11 process enables American Airlines and American Eagle to continue conducting normal business operations while they restructure their debt, costs and other obligations.
- American Airlines and American Eagle are operating normal flight schedules today, and their reservations, customer service, AAdvantageprogram, Admirals Clubs and all other operations are conducting business as usual. Likewise, throughout the Chapter 11 process, American and American Eagle expect to continue to:

Provide safe and reliable service;
Fly normal schedules;
Honor tickets and reservations, and make exchanges and refunds as usual;
Fully maintain AAdvantage frequent flyer and other customer service programs, and ensure all AAdvantage miles and elites status earned by members remain secure and intact;
Provide Admirals Club access and similar amenities to members and eligible customers;
Remain an integral member of the oneworldalliance, of which American is a founding member, and continue its codeshare partnerships;
Provide employee wages, healthcare coverage, vacation, and other benefits, without interruption; and
Pay suppliers for goods and services received during the reorganization process.

Pilots union must be so proud, another airline blown up by its workforce. (edited to add - posted for no other reason than this was so obviously going to end badly and its a situation mirrored across the industry).

Amazing. Even when filing for bankruptcy, they can't stop spewing out the corporate crap-talk.

@LC - why did AMR have to file for bankruptcy?

If 411A was still with us I have no doubt he would have plenty to say on the subject.

Good luck to the folks at AA who make it work... Pilots, FAs, MX., and ground staff.

To the suits!?!? Shame on all of you!:=

To cake
 

Ok I thought I would let sleeping dogs lie,,,but in your case, I'll bite? Blaming all this on the pilots of AA? Let's hear it...

blame is being placed at the unions rather than the pilots:

taken from the bbc.

@pieceofcake So they can legally void all existing employment contracts and force the unions to renegotiate new contracts.

@LC - in the broadest of terms I understand that the company wanted new contracts that altered terms and pilots wanted to get back some of the things they gave up back in earlier restructuring.

If you have a different opinion then speak up. However what seems a dumb trade to me is blowing the company up in the process. In the old days that would be see a little "dog in a manger".

The wider point is why does this keep happening to airlines? It is surely the most distrupted industry of the modern age.

I hate to say it, but this step has been overdue for a long time. All other major competitors (United, Continental, US Air) already did this in the early to mid 2000's. AA has been less competitive because of - among other things - old union-dominated labor contracts. While this filing will obviously be painful for AA's employees, it will hopefully bring the company back on track and make it able to stand up to its competitors. I just hope they cut salaries and benefits wisely and not simply across the board.
Better not fly AA today, I bet customer service will slightly lack enthusiasm...

This bears posting


Despite losses, American Airlines CEO's compensation climbs

BY ANDREA AHLES
[email protected]

AMR Corp. Chief Executive Gerard Arpey received $5.2 million in total compensation last year, even though the parent company of American Airlines was the only major U.S. carrier to lose money in 2010.

Arpey's compensation grew 11 percent over 2009, boosted by an increase in stock awards and options that were granted in May.

Last year, AMR posted a $471 million loss while other major carriers reported profits. And with rising fuel costs, the Fort Worth-based company reported a $436 million loss for the first quarter.

On its earnings call this week, Wall Street analysts questioned Arpey and other AMR executives about whether they had any original ideas and criticized their lack of focus on short-term objectives. Shares of AMR (ticker: AMR) hit a 52-week low, closing at $5.49 Thursday.

According to the proxy filing made with the Securities and Exchange Commission late Thursday, Arpey received a salary of $669,646 for 2010, unchanged from the previous year, and no cash bonus. However, most of his compensation came from $3.3 million in stock awards and $1.2 million in option awards, which were $515,000 higher in value than the stock and options given to Arpey in 2009.

He also received $94,660 in other compensation, including $56,440 for security for his family in 2010.

In describing its methods for executive compensation, the board of AMR said that Arpey's compensation "remains significantly below the median of CEOs" of comparable publicly traded companies.

AMR President Tom Horton, who was promoted in 2010 from chief financial officer, also received a substantial pay increase of 45 percent, to $3.1 million, because of stock and options.

The Star-Telegram uses the same formula to determine executive compensation as The Associated Press. Total compensation includes salary, bonuses, nonstock incentives, other benefits and the estimated value of stock and options.

The company also announced that it will hold its annual shareholder meeting May 18 in Los Angeles. This is the second year in a row that AMR has decided to not hold its annual meeting in Fort Worth after conducting the meeting at its headquarters for 15 years.

American Airlines' unions had picketed outside the meeting, protesting "corporate greed" and the stock-based bonuses awarded to AMR managers each year.

On Wednesday, the Association of Professional Flight Attendants picketed at several airports, including Dallas/Fort Worth, handing out leaflets to passengers saying AMR executives had received over $100 million in compensation and bonuses since 2005.
(Emphasis Huck's)

Union representatives were not immediately available for comment late Thursday. American has been in contract negotiations with its three unions for several years as they seek to increase wages. But the carrier's officials say American's labor costs are the highest in the industry.



Read more: Despite losses, American Airlines CEO's compensation climbs | News | News from Fort Wort...

Stupid pilots. If they wanted to make good money they should have gotten an MBA....

Guess they shouldn't have made that huge budget ad with Kevin Spacey - that's where a big chunk of the money went I reckon - not!!!

They are still taking bookings on AA.com without any warning of bankruptcy, is this legal?

Yep and standby for the customary endless whining from the unions about how much the CEO makes.

They will probably hire some hippies to set up an 'Occupy AA' camp at headquarters for the news cameras.

Not that long ago AA pilots proudly strutted around the terminal like they were Deltoids or something.

It's all part of the OGA (Once Great Airline) drill, many of us have been there and done that...:sad:

AA has one of the oldest fleet of any majors around the world. That is failure of management, not unions. Yet management will get massive bonuses when they re-emerge from chap 11.

Tell your kids to go the MBA way!

Why wouldn't it be legal; they're not going to be going out of business tomorrow are they.....