According to Ray Neidl, senior analyst following the airlines for the Maxim Group, the point is moot, he doesn't think AMR is going anywhere. AMR is in "no immediate danger of involuntary bankruptcy,", he says, citing AMR's cash on hand.
That said, the company has started "bleeding cash," a situation that could easily be exacerbated should the economy continue to decelerate. AMR can survive a run-of-the-mill recession, but should a downturn be extended all bets are off.
Notwithstanding the problems at AMR, Neidl says the industry as a whole is relatively well-positioned for an economic downturn. The industry "Ax" has seen four economic downturns in his time on the airline beat and says "this is the first time the industry could make money in a downturn." Neidl cites changes in industry practices regarding yield management and pricing, not to mention labor relations. On the latter, the industry has one company to thank.
"Southwest (LUV) proved they can work with the unions," says Neidl. Though AMR demonstrates that old-school "management versus labor" hostilities remain, companies that recently went through bankruptcy have a cleaner slate.

Put Neidl in the camp of free marketeers who think the "invisible hand" should be allowed to work its magic in the airline industry. There are "one too many big airlines," he says, blithely addressing the potential elimination of 20-25% of the Big Airline pool. "Having three legacy carriers plus Southwest is more than enough competition."
Neidl is hardly a table pounding bull on the legacy groups, but forced to choose between the non-AMR pool of the big boys, his favorite is Delta.