American Airlines (AMR) OFFICIALLY enters chapter 11 Bankruptcy
Nov 29th, 2011, 03:18 AM
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American Airlines (AMR) OFFICIALLY enters chapter 11 Bankruptcy
Dallas Morning News learned Monday evening that:
A. AMR and American Airlines plan to file for Chapter 11 bankruptcy Tuesday in the Southern District of New York, in the U.S. bankruptcy court in New York City.
B. Gerard Arpey plans to step down as AMR and American Airlines chairman and chief executive officer.
C. Tom Horton, currently AMR and American Airlines president, will be named chairman and CEO of AMR and American as well.
ALL flights and FF miles will be honored.
As we all remember, Arpey has spoken often of his distaste for bankruptcy, even though competitors now doing better than AMR had landed in bankruptcy and gained a cost advantage over AMR and American.AMR came close to filing for bankruptcy in early 2003, but stepped back after employees gave the company $1.6 billion in annual pay cuts and other concessions. We asked Arpey in a June interview if he wishes iAMR had filed for bankruptcy. His immediate answer: "Never."As to competitive advantages by once-bankrupt competitors, "I don't feel those companies have achieved permanent competitive advantage by going bankrupt. They clearly have advantages today, but those advantages I don't believe are sustainable over the long run."That leaves Horton to guide the money-losing carrier through the Chapter 11 process and back to health.
Odds are great he will accomplish his task all the other majors have emerged stronger.
A. AMR and American Airlines plan to file for Chapter 11 bankruptcy Tuesday in the Southern District of New York, in the U.S. bankruptcy court in New York City.
B. Gerard Arpey plans to step down as AMR and American Airlines chairman and chief executive officer.
C. Tom Horton, currently AMR and American Airlines president, will be named chairman and CEO of AMR and American as well.
ALL flights and FF miles will be honored.
As we all remember, Arpey has spoken often of his distaste for bankruptcy, even though competitors now doing better than AMR had landed in bankruptcy and gained a cost advantage over AMR and American.AMR came close to filing for bankruptcy in early 2003, but stepped back after employees gave the company $1.6 billion in annual pay cuts and other concessions. We asked Arpey in a June interview if he wishes iAMR had filed for bankruptcy. His immediate answer: "Never."As to competitive advantages by once-bankrupt competitors, "I don't feel those companies have achieved permanent competitive advantage by going bankrupt. They clearly have advantages today, but those advantages I don't believe are sustainable over the long run."That leaves Horton to guide the money-losing carrier through the Chapter 11 process and back to health.
Odds are great he will accomplish his task all the other majors have emerged stronger.
Nov 29th, 2011, 11:06 AM
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We'll be (hopefully!) flying with AA in February.
Got an e-mail that they will honor all reservations. Singned by Maya Liebman, president of AAdvantage loyalty program. This helps to hope all will be fine.
Also the e-mail said, they will honor all miles earned so far, and the future too. This is good.
Also in that e-mail they said over 80,000 people are enrolled - I think it's not that many, what do you think?
Got an e-mail that they will honor all reservations. Singned by Maya Liebman, president of AAdvantage loyalty program. This helps to hope all will be fine.
Also the e-mail said, they will honor all miles earned so far, and the future too. This is good.
Also in that e-mail they said over 80,000 people are enrolled - I think it's not that many, what do you think?
Nov 29th, 2011, 12:35 PM
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I have an AA credit card and a GM credit card. Have over 100k points on AA and about $3200 on the GM card. So, it would seem that I have earned a lot of bonus. Just hope I actually end up with it. I have new GM card and the old GM card. They are still honoring the old system/way of doing things. The new GM system limits you severely.
Nov 29th, 2011, 01:40 PM
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<i>Also in that e-mail they said over 80,000 people are enrolled - I think it's not that many, what do you think?</i>
Maya is referring to the 80,000 AA employees. There are many many millions of AAdvantage members.
Maya is referring to the 80,000 AA employees. There are many many millions of AAdvantage members.
Nov 29th, 2011, 03:33 PM
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bettyk, you're going to Hawaii? You've got to be kidding.
This year you and I both went to Central Europe including Poland, and next year we are both going to HI. What's up with that? You are a copy cat!!
This year you and I both went to Central Europe including Poland, and next year we are both going to HI. What's up with that? You are a copy cat!!
Nov 29th, 2011, 03:36 PM
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bettyk BTW, we are also using AA frequent flyer tix. Our tickets are already booked, that's how I know YOU are the copycat. 
Which island and when are you going? We're going to Kauai in September.
Which island and when are you going? We're going to Kauai in September.
Nov 29th, 2011, 04:26 PM
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Well P_M, what can I say? I guess I AM a copycat!!
We will probably go in October or November, depending on when we can get tickets. Our schedule is fairly flexible but a friend will be joining us. She went with us to Europe in 2010. I know we will be going to Maui but hope to spend a few days on the Big Island as well.
We will probably go in October or November, depending on when we can get tickets. Our schedule is fairly flexible but a friend will be joining us. She went with us to Europe in 2010. I know we will be going to Maui but hope to spend a few days on the Big Island as well.
Dec 3rd, 2011, 02:15 PM
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http://www.forbes.com/sites/deborahl...be-worth-less/
Found this article in Forbes about the impact of the bankruptcy on AA free seats. Some valid points about the realities of the situation. I tend to ignore the "official" line from AA. It is much broader and complex than you will keep your miles. To me personally, the only value of my miles is getting free seats. The author is right about one thing, have no delusions, the amount of seats available on both AA and its partners for AA members - especially for PlanAhead (the only ones that matter to me) - will definitely decrease in the not too distant future - make no mistake about it.
Found this article in Forbes about the impact of the bankruptcy on AA free seats. Some valid points about the realities of the situation. I tend to ignore the "official" line from AA. It is much broader and complex than you will keep your miles. To me personally, the only value of my miles is getting free seats. The author is right about one thing, have no delusions, the amount of seats available on both AA and its partners for AA members - especially for PlanAhead (the only ones that matter to me) - will definitely decrease in the not too distant future - make no mistake about it.
