View Poll Results: Will AA declare bankruptcy?
Yes
219
70.65%
No
91
29.35%
Voters: 310. You may not vote on this poll
Bankruptcy
08-19-2022 | 11:37 AM
#1171
Line Holder
Joined: Jul 2015
Posts: 1,588
Likes: 4
From: MD-88 FO
08-20-2022 | 03:00 PM
#1173
You scratched my anchor
Joined: Feb 2011
Posts: 5,126
Likes: 84
09-11-2022 | 01:43 AM
#1176
Line Holder
Joined: Dec 2021
Posts: 65
Likes: 0
From: Captain
Can someone please shed some light as to what happened to the pilots during the 2011 bankruptcy? If AA goes bankrupt again which chapter do you think it’ll be? How will it affect the pilots? Do you see AA failing and closing its doors or will they continue to be bailed out by the government?
09-11-2022 | 03:36 AM
#1177
Gets Weekends Off
Joined: Dec 2019
Posts: 2,262
Likes: 119
I think most people are of the opinion that nothing would happen to the pilots in bankruptcy. AA is still has a viable business plan. Still generates cash flow and has lots of assets (yes lots tied to debt). The pilots are not overstaffed or over paid compared to the market. Just has a debt problem and incompetent management . Chapter 11 helps relieve the debt problem. Not liquidate or part out. At worst they completely dump the pension on the PBGC, but that affects less than half the pilot group. Maybe a judge forces some culling in management bloat.
Chapter 7 is on no one’s mind I know, even with a recession.
Chapter 7 is on no one’s mind I know, even with a recession.
09-11-2022 | 07:17 AM
#1179
Gets Weekends Off
Joined: Jan 2018
Posts: 2,835
Likes: 276
I think most people are of the opinion that nothing would happen to the pilots in bankruptcy. AA is still has a viable business plan. Still generates cash flow and has lots of assets (yes lots tied to debt). The pilots are not overstaffed or over paid compared to the market. Just has a debt problem and incompetent management . Chapter 11 helps relieve the debt problem. Not liquidate or part out. At worst they completely dump the pension on the PBGC, but that affects less than half the pilot group. Maybe a judge forces some culling in management bloat.
Chapter 7 is on no one’s mind I know, even with a recession.
Chapter 7 is on no one’s mind I know, even with a recession.
09-11-2022 | 07:41 AM
#1180
Gets Everyday Off
Joined: Aug 2016
Posts: 6,995
Likes: 1
From: Fully Retired
When I bought my house, I had negative cash flow that year. Was that a sign of financial weakness? I don’t think so.
Buying a bunch of new airplanes each year results in negative cash flow for those years.
Buying a bunch of new airplanes each year results in negative cash flow for those years.
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