AMERICAN AIRLINES' FLIGHT ATTENDANTS ACCEPT CONCESSIONS
American Airlines pulled back from its second brush with bankruptcy in
two weeks Friday, after flight attendants agreed to a new package of
concessions.
Saturday Apr 26, 2003
The Reuters news agency reports that the world's biggest airline is
teetering on the brink of bankruptcy. Reuters says that AMR Corp.'s
American Airlines will file for bankruptcy protection on Friday or
Monday in U.S. Bankruptcy Court in New York unless its flight
attendants labour union makes contract concessions. Pilots, mechanics
and other ground workers have agreed to such concessions to save
their jobs. But the union representing flight attendants missed a
deadline on Thursday to follow suit. American Airlines' board of
directors requested and obtained on Thursday the resignation of the
company's CEO, Don Carty.
Sunday Apr 20, 2003 ts AMR SHARES TUMBLE AS UNION CALLS FOR NEW VOTE ON CONCESSIONS
Shares of American Airlines' parent company, AMR Corp.
, fell by 23 per cent on Monday afternoon trading as flight
attendants vowed to hold a third vote on contract concessions.
Sunday Apr 20, 2003 ts AMR unions angered by news of executive perks Benefits shielded from bankruptcy
Workers accepted big concessions
Friday Apr 11, 2003 ts
Airline staff back survival plan
Flight attendants with American Airlines vote narrowly in favour of a pay cut to stave off bankruptcy.
They voted by 10,761 to 9,652 to join pilots, mechanics and other ground staff in backing the plan which the airline says will save $1.8bn a year in labour costs. This has been a race against the clock
Don Carty, AMR chairman
Saturday Apr 19, 2003 bbc Threat to American Airlines deal
The future of the troubled airline is again in doubt after unions threaten to reconsider a pay-cut package.
Thursday Apr 17, 2003 AMR (AMR : NYSE : US$4.23)
Net Change: 0.83, % Change: 24.41%, Volume: 25,257,500
Fashionably late. For the time being, the company is not going to file for
bankruptcy because the flight attendants have ratified the agreed. This
should give some relief to shareholders however the $1.8 billion cost
savings these new deals are expected to glean isn’t a miracle. The company
is going to need a turnaround in demand if it is to avoid contemplating
the same drastic move in the near-term.
Monday Apr 14, 2003 AMR (AMR : NYSE : US$3.30)
Net Change: -0.50, % Change: -13.16%, Volume: 10,127,400
Shares were down sharply ahead of American Airlines’ announcement late
Friday that unions representing pilots and flight attendants had accepted
an offer of higher pay if the troubled carrier’s financial situation
“substantially improves.” Under the “variable wage adjustment program,”
the airline would provide pay increases of up to 4.5 percent a year if
certain financial conditions were met. The tentative agreements also
include new stock option and profit sharing plans. American has already
reached a similar wage deal with the union that represents ground workers
and mechanics. Unless all three unions vote to ratify the deals by
tomorrow, the company has said it will have no option but to file for
Chapter 11 bankruptcy protection.
Wednesday Apr 9, 2003 AMR (AMR : NYSE : US$3.63)
Net Change: -0.65, % Change: -15.19%, Volume: 15,493,800
Renegotiate or we break yer legs, see! American Airlines’ union is asking
for its recently agreed upon contract to be re-worked to appease unhappy
union workers. They feel they aren’t getting enough and the state of both
the economy, no inflation, and airline woes does not concern them.
Somebody should remind the 16,200 mechanics that 2,500 pilots are being
fired, that SSB just downgraded the entire sector, that Spain’s largest
airliner just cut 5.2% of global capacity, Singapore Airlines cut 14% of
flights and Cathay Pacific Airways is facing its worst-ever crisis (being
the most exposed to SARS, as it flies in that region more than any other).
Tuesday Apr 8, 2003 AMR (AMR : NYSE : US$3.95)
Net Change: 0.32, % Change: 8.82%, Volume: 12,246,500
Back from the nearly dead. Shares climbed ahead of news that American
Airlines will institute a new stock option plan for its employees, and
earmark 15 percent of pre-tax earnings greater than $500 million to
certain employees. American announced the plan four days after narrowly avoiding a
possible bankruptcy filing when it obtained tentative agreements from its
major unions for $1.8 billion of annual cost cuts. AMR said it would grant
stock options representing nearly 25 percent of its outstanding shares to
American employees, who number roughly 100,000. AMR also said it will
issue stock to vendors, aircraft lessors and other creditors who made
concessions to help it cut costs. Shares rose more than 150 percent last week.
Tuesday Apr 8, 2003 AMR (AMR : NYSE : US$4.28)
Net Change: 0.33, % Change: 8.35%, Volume: 18,332,200
AMR jumped after the parent of American Airlines said last that it will
offer its workers a stock-option and profit-sharing plan that could put up
to a quarter of outstanding shares in the hands of employees. The move,
which also may reward some suppliers and vendors with stock, came at the
end of a week that saw the carrier avert a possible bankruptcy through
last-minute labour negotiations that cut $1.8 billion in costs. AMR said
the reductions have been tentatively approved by union leadership and will
soon be voted on. If the cuts are ratified, the airline will issue options
for 37 million to 38 million shares that would vest over three years.
Wednesday Apr 2, 2003 cbc
AMR (AMR : NYSE : US$3.00)
Net Change: 0.90, % Change: 42.86%, Volume: 34,239,700
Shares soared after a leader of its pilots union said late Monday that
“part of a proposal” to meet a $660 million cost-cutting goal with
American Airlines was in hand, though “several important issues” remain.
Talks are continuing, as the company is “still holding the threat of
bankruptcy over ‘their’ heads.” Earlier, the flight attendants put its
package under review, while the mechanics gave the nod to a pact with the
carrier. The official word will come from the Allied Pilots Association.
Tuesday Apr 1, 2003 bbc
American Airlines avoids bankruptcy
The world's largest carrier reaches a last-minute deal with three unions, but must still secure financial backing to stay afloat.
Tuesday Apr 1, 2003 AMR (AMR) surged 40 percent higher after its American Airlines unit
reached an agreement with its mechanics on concessions. The accord clears
the way for $620 million in savings from the Transport Workers Union and
may help American avoid a bankruptcy filing.
AMR (AMR : NYSE : US$2.22)
Net Change: 0.64, % Change: 40.51%, Volume: 26,933,200
Free airline peanuts for everyone!!! Shares surged on news that American
Airlines reached tentative agreements with three key unions, avoiding a
bankruptcy filing. Technicalities still need to be worked out, but that it
appears that the world’s largest carrier achieved the $1.8 billion in
labour concessions that it needed to avert Chapter 11. Any agreements
reached between union and company negotiators would still need to be voted
upon by the employees. Industry experts said the pace of labour
negotiations at American was likely helped along by the progress made last
week by United Airlines (UALGQ), which secured a tentative agreement from
its pilots’ union on new contract that would cut annual costs by $1.1
billion.
Monday Mar 31, 2003 AMR (AMR : NYSE : US$1.58)
Net Change: -0.21, % Change: -11.73%, Volume: 12,486,700
Well, everyone else is doing it… Stocks sold off sharply on speculation
that subsidiary American Airlines might seek bankruptcy protection as
early as this week, according to two bankers who have been briefed on the
carrier’s efforts to line up financing ahead of a filing. Executives at
the airline worry that labour cost cuts under discussion with unions may
not be enough to return the carrier to profitability. A bankruptcy filing
by American would almost certainly be the largest in aviation history, and
it would follow closely on the heels of filings last year by the No. 2
airline, United (UAL), and by US Airways (UAWGQ), the No. 6 domestic
carrier. American is looking to put together more than $1.5 billion in
debtor-in-possession financing, which would allow it to maintain its
operations.
)
Andy Nulman 
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