TransWorld

If AA declares Chapter 7 (involuntary) bankruptcy, AA and all its WO will close their doors permanently and all assets will be liquidated. Is that what you mean? I would take that bet against that.

TransWorld

If you mean Chapter 11 (voluntary) bankruptcy and reorganization, if they cut pilot pay rates in this environment, they would not be able to attract new pilots. Existing pilots would leave in big numbers. There are lots of job openings out there. AA would go down the tubes and close their doors.

Fortunately, AA and all the major airlines are turning a profit, even with what you call “unsustainable” pay rates. Baring any unforeseen event, they will continue to be profitable.

Since they renewed most of their fleet (resulting in their heavy debt) their need for new aircraft to replace retiring aircraft will be limited. Delta and United, by comparison, will have to renew their fleet to a much greater extent. Their debt will increase. If they choose to lease, their operating expenses will increase. They would have to pay on those leases. That would reduce their profits.

Swakid8

I wouldn’t bank on debt load to increase at United and Delta significantly from fleet renewal when looking at the context of the deals they got.

United for example is taking white tail Maxes that were refused by Chinese carriers that Boeing had to quickly remarket.

Delta whose CSeriea (A220) original order from Bombardier was that of a steep discount to land a blue chip customer for the program and managed to pick up some lightly used A350s from a bankrupt LATAM……

The opportunities for landing some good deals weren’t available for AA at the time for fleet renewal unfortunately. Because of the debt load, they might have not have been to n position to take advantage of opportunities to pick up new frames (Maxes/A220s) at a discounted rate.

If AA can take focus with paying down debt vs trying to buy back shares for a foreseeable future, they will be around….

Monkeywizz

Paying back debt with cheap dollars due to high inflation. Basic business 101. Expect the stock buybacks to continue also.

saltbae

Envoy and Piedmont are able to get critical pay at 200% and 300%

PSA can pay us more and it’s crazy they don’t when our colleagues are getting paid much more for the same flying. Stop picking up critical until they pay us fairly, like Piedmont and Envoy. We have to wait until holiday pay to get 200%, meanwhile every month is a holiday for them

Slow2Final

Learn how a contract works. They can offer critical, and contractually it pays 150% over guarantee. Technically doing anything outside of that is a violation.

Heck, if you're smart, you can trip trade into a line that effectively works no more than your award, and still collect critical, because a few years back the company decided they didn't like how the previous critical enticed people to sap to 65.

The best solution? Stop complaining, update apps, and get out.

saltbae

Yes, everyone should get out ASAP to a legacy. But it would be nice if we were offered 200% and 300% critical... and there is only one way to make them desperate enough to offer that much of a premium

Swakid8

You should’ve been gone a long time ago…

Neverupgrade

I haven’t seen anything about the pay being extended past Aug 2024. Does anyone have more details on that? What’s the new extended date?

TransWorld

I would think they would kick the can down the road, until closer to that date. Then make a decision. Better business sense.