Originally Posted by eaglefly

I'm surprised you'd be interested to hear his opinion on the small jet scope side of the deal considering the post you reference (along with many of his others) is filled with error, assumption and thus bad and most likely biased conclusions. AMR wasn't really "bankrupt" when it filed for reorganization under chapter 11. It had 5 billion in cash and had 12-18 months before they were financially at that crossroad (debt/asset and operating finances) according to virtually every analyst. A MAJOR reason AMR filed early was to stop the increasing exodus of pilots who saw that after a decade of a failed or non-existant business plan, AA was indeed headed that way and wanted their lump sum retirements before the thump. AMR wanted to protect its holiday schedule, so filed many months early. The aircraft orders and other actions in the 6 months prior to filing all indicated AMR was indeed planning an imminent chapter 11 filing and surprised everyone with the early move, with the exception of an increasing number of pilots with an accurate case of the hebe-jeebies. The primary point of this BK was simply to slash labor costs, especially pensions. Clearly, as time goes on they've decided to go after every penny possible as initially with the proposal of November 2011 made just before the filing, that was what was claimed necessary for reorganization. Then after filing several term sheets and an LBFO that ratchet everything downward in an ever changing demand of what is "needed", they reclaim the new and deeper cuts are necessary. It's all baloney.

Now apparently the claim is that NO PENSION AT ALL is apparently required, but we all know that is simply arm-twisting.........but that's what this has become, i.e., not about what is "needed", but what can be "taken". The chapter 11 process even as lopsided against labor as it is, is NOT supposed to be used that way, but arguably, this BK has become an open refrigerator for the debtor, or so they believe and it seems that apparently this management is claiming it can't compete unless it has virtually regional airline economics from its pilots. That brings us to the absurd conclusions of a judge highlighted by alfa and a system that is DESIGNED to come to just such conclusions for the benefit of the only entities that matter in a broken system, the debtor, creditors and investors, only now it seems this judge has relinquished his gavel to the debtor to use as a club. As far as AA pilots are concerned, this has gone way too far. AMR could have improved its network at any time during the last decade but CHOSE not to.........well, actually they did by acquiring several carriers, but in virtually every case, melted that network and the assets they brought within 18 months to a puddle. The "feed" issue (which we all know most of which really isn't feed) COULD have been solved at any time during the last decade if they CHOSE to by negotiating a fair and competitive contract allowing that instead of deliberatly dragging their feet and stalling out another broken process designed to favor people with this business philosophy.

It seems Lane apparently believes that poor little ole' AMR was hamstrung by outside sources, especially unreasonable pilots, yet the testimony was litterted with claims by THEIR witnesses of primary business strategies that including "kicking the can" and "limping along". The bottom line is the only thing the judges ruling shattered was any belief in the capability of this judge to make a rational evaluation of the situation or the hope that a broken and biased system might, under the most eggregious circumstances, not turn a blind eye toward the ridiculous. Therefore, it matters little what this judge believes as apparently, as it stands now anyway, this process won't be providing a fair and balanced resolution if left up to only the debtor and the pilots. Thus, the only way forward in the eyes of the pilots anyway, is to either let AMR attempt to band-aid their POR as the best WITHOUT a pilots CBA and hope they get the backing and approval to exit stand alone which has MAJOR risks for creditors and investors going forward, IMO most of which will be AFTER exit from chapter 11 when excessive, inopportune and uncontrolled attrition may cripple the operation before it can start a recovery (high resignations/retirements) or exhausting exclusivity prior to that and letting whatever sharks are out their circling into the pool for a taste. As to the former, should that occur, the debtor wont be a debtor anymore, just a freshly reorganized company with a MAJOR problem right out of the gate. Then judge Lane is truly irrelevent as his jurisdiction vaporizes.

Alfa is completely in error regarding the existance of the claim going forward as yes, it still does exist. To what degree is an unanswered question. He assumes that the "process" has stopped now for AA pilots and that is also in error. His conclusion that the "only way to go" based on his errors and assumptions of his multiple posts has lead him to the worst conclusion for AA pilots possible, one devoid of any options, hope or abilities for perhaps a decade and all for 30 pieces of silver (more likely 30 pieces of paper stock), so any thoughts on small jets from him, I expect to be more crapola as well.

Claiming his opinion is correct and seeking more of it is like commending the paper boy's smarts for delivering a paper that has the latest stock market increase and asking his advise on future investing because of it.

What now ?

Well, from what I've heard, the parties will be meeting with judge Lane prior to the 1PM Sept. 4 hearing at his request (perhaps that very morning). WHAT he is going to say to all the parties is not yet known, but it's my understanding that many want a concensual agreement and don't want this apple cart to be tipped over (you rarely get all your apples back when that happens). AMR has refiled their 1113 with "corrections" and is requesting the judge to re-rule on the motion. However, it's my understanding (but I could be wrong) that once an 1113 is denied (regardless of the reasoning), that the 1113 "process" must restart as opposed to being "continued", that being a new 14-21 day expedited process. An expedited process would allow the reintroduction of any new information to compare against the competition to ensure what is demanded is necessary and doesn't produce an unfair competitive advantage and in fact, the APA sent AMR a letter requesting just such information of their latest assessment of all the recent developments both within AMR and their plan, what's occuring at the competition relating to pilot compensation and financial evaluations of their demands in order to ensure what is being demanded is in fact, necessary for successful reorganization and all parties are being treated fairly and equitably.

AMR has requested the court to dismiss any such re-starting of the process and wants an immeadiate ruling using all past testimony and evidence as it being already argued and ruled upon. Desireable, yes, but from what I understand, that is not what the process provides for once an 1113 is rejected. To me, that would seem to imply the debtor is now re-writing bankruptcy law to their advantage. At any rate, I'd expect little likelyhood of any bombshells until Sept. 4, any meetings, the hearing and what judge Lane does.