AMR Laying off Mgmt??
 

Don't remember where I read it, and can't find it any longer, so I'm assuming I had some crazy dream? I think I read they are laying off 2-5 % of mgmt???? What is going on here, first selling Eagle, now this? Is AMR going downhill really fast once again? (Rhetorical)..:confused:

Are they getting ready to buy somebody? They'd need the cash from the Eagle sale and wouldn't need as many management guys if they were thinking in that direction. Just a guess.

Interesting times indeed.

Maybe Northwest Airlines??

I really doubt AA is considering any acquisition/merger at this point. Their corporate culture and managements ego would make that very 'difficult'. (Look at USAir and AW)

I think the management trimming is in response to the APA. Because of the APAs' 'sink the ship' demands pointing out bloated management salaries and bonuses, the only option for AMR to keep shareholders happy is to trim some overhead prior to telling the pilots that AA can't afford to pay them more.

Just an opinion...

Hey, hate to disagree. But AW and USAir merged. These people don't care about coorporate culture....only stock price and pay day. They don't care about how difficult a merger is, just how much of a buyout they can get before moving on to destroy the next company. :rolleyes:

Hits the nail on the head.

They could always use more cash, who couldn't, but lack of cash is not AMR's primary problem right now. They've got over $5.5 Billion in cash listed on their balance sheet today and Eagle isn't worth very much anyway unless it's sold with a long term contract to supply feed for AA.

After the TWA bailout I don't think AMR is going to be the trend-setter in the next merger.

Ourpay Arpey got lambasted by the pilots union a few hours before the AMR announcement about reducing management numbers. Also he could have gotten wind that FL group was in the process of selling of their stake in AMR stock. Doubtful that he was trying to appease the pilots. He wants to keep the stock price up because he and his buddies still have options to cash out of before they let the company implode.

AMR has always been extremely conservative in how they run their company. I think they were the only Legacy to not declare bankruptcy, still have pilots pensions, etc. They are most likely doing this because they think they can cut costs without impacting the bottom line. Honestly I wouldn't read too much into it, if anything it would be a positive indication as they are taking some initiative.

Your right about Eagle not being worth much...Right now. AMR posted a Q&A message on the pilot web site that basically states that they will be asking for changes in Scope during section 6 talks. If they're sucessful in getting APA to allow bigger aircraft at Eagle in exchange for large pay increases (the only reason I see APA agreeing to any scope changs), it would make Eagle much more attractive to a buyer. Should be an interesting 2008.