Originally Posted by
rickair7777
Too big to fail.
Unless major global catastrophe, then all recent hires are furloughed anyway.
Suppose it's possible they could get into Ch.11 and have their contract adjusted. But that would be "industry average" per law, not rock bottom. And if AA wound up with big cost reductions, AS might see some of their one-world flying shifted to AA domestic fleets.
Too big to declare bankruptcy, again?
I'll never forget the call from one of my mentors, a pilot at American who asked me over the phone one night: "should I vote on this pay cut so we don't go bankrupt?" I was still in my 20's and the lost decade was going strong. I actually still remember telling him that he shouldn't accept that and the company will just take your money. The pilot's pay was cut and the entire board was given 7 million dollars each as a golden parachute. I'm not sure if I recall the exact numbers correctly but it was a massive pay cut for the pilots. They declared bankruptcy anyway. I know this is in the Alaska history too but bankruptcy will gut a pilot contract, historically speaking.