American and Eagle

[FastPilot]

This was posted by another Eagle pilot on another board.

"Okay folks this is my suggestion, for the seniority integration, everyone stays put where they are, the furloughees stay where they are at AA and AE. If AA dumps more pilots, they will come to AE only if AE is hiring and if their seniority number allows them. If their seniority number allows them to have a CA seat at AE, so let be it. Now if after the down turn cycle starts to change, maybe in 10 years or so, then if AA needs pilots, they will come from whoever holds the highest number, street or AE pilot,if a AE pilot goes to AA he will have to sit FO for 13 months before he can bit CA at AA. Anybody else will have to be hire at the bottom of the list, obviously the bottom of AE. Now this only and I repeat only will work if DOH is used. Now what do you think?"

As a side note, there has never been a list staple at AMR, and it shouldn't start now.

Semper Fi,
Steve

 

[FastPilot]

AMR shares fall to all-time low




Wednesday January 29, 11:24 AM EST

By Jon Herskovitz

DALLAS, Jan 29 (Reuters) - Shares in American Airlines parent company AMR Corp. (AMR) fell to an all-time low on Wednesday as a gloomy economic outlook and fears of bankruptcy at the world's largest airline scared off investors, Wall Street analysts said.

In early trading on Wednesday, AMR shares were down 12 cents, or 3.8 percent, to $3.01, surpassing the all-time low of $3.02 set in intraday trading in October.

AMR shares fell below the $4 plateau last week when the company said it posted the largest yearly loss in the aviation industry, losing $3.5 billion in 2002.

Analysts and AMR executives said the underlying trend shows the carrier is operating at a level that is not sustainable -- losing about $5 million a day.



"We believe that the risk of a potential near-term bankruptcy filing has increased appreciably," Salomon Smith Barney analysts Reno Bianchi and Soo Koon Lee wrote in a research report issued earlier this week.

"At this stage we increase the possibility of a potential filing within the next 12 to 18 months from our earlier 20 percent to 25 percent estimate to 35 percent to 40 percent," they said.

AMR executives have said one of the keys to turning their airline around will be to drastically cut costs so that it can be competitive with low-fare airlines, such as Southwest.

AMR has said it is looking to reduce its operating costs by about $4 billion, and it has already identified $2 billion in cuts.

The airline has slashed its capacity and cut its work force since the Sept. 11, 2001 attacks walloped the travel industry. AMR executives have said reductions in personnel costs will be a large part of the mix in the remaining $2 billion of their savings goal.

"The key to stronger operating results is considerably reduced wages, and, or, a change in existing agreements aimed at fostering considerable productivity enhancements," the Salomon analysts said.

Don Carty, AMR's chairman and chief executive officer, said last week when the company released its fourth-quarter earnings report that said a sluggish economy, high fuel costs and global uncertainties such as the possibility of war in Iraq, could hurt the airline's bottom line.

Fort Worth, Texas-based AMR reported a fourth-quarter loss of $529 million, or $3.39 a share, compared with a loss of $5.17 a share a year earlier. Analysts, on average, had expected a loss of $3.73 per share, according to Thomson First Call.

Wall Street experts said some of the others areas of concern are talks with the airline's unions over wage concessions, AMR's projections of substantial losses continuing in the first quarter, and financial obligations such as funding pensions and meeting the terms of loan covenants.

"The slide in share prices is a combination of trepidation about the revenue environment, the threat of war, and the prospects for difficult labor negotiations that American has to complete in a short period of time," said Gary Chase, airline analyst at Lehman Brothers.


©2003 Reuters Limited.
RELATED QUOTES
Symbol Last Trade Change
AMR
2.95
-0.18

Enter one or more symbols

Quotes delayed up to 20 minutes.

 

[Airline Pilot27]

Everyone who suggests DOH between Eagle and AA is in fact suggesting that Eagle be sold or spun off. There is no way and I repeat no way that DOH will ever happen with AA. It didn't happen with RENO, it didn't happen with TWA and it sure as hell will not happen with us. The funny thing is that in my experience it seems that the few pilots still around that voted for the 16 year disgrace are the ones asking for DOH. I just hope these guys don't screw us again by killing any chance of a SSL with AA. If you want to be sold off then fine but do not be so arrogant as to suggest that you should take that 777 Cpt. spot that you so rightfully deserve. A staple with endless eagle furlough protection for all on the property will in my opinion be approved by the majority of the membership as long as all newhires start at Eagle.
Off my soap Box...feeling much better

 

[FastPilot]

all newhires start at Eagle.
Off my soap Box...feeling much better

That's the key....