Seeking Alpha
  • Eric Stalee
    Dad works at AAL and says bankruptcy due to poor management(and giant executive bonuses) rather than oil costs etc.
    11/29/11
    Reply (13)
    • 1980XLS-2.0: And market forces had nothing to do with it? ALL airlines have went bankrupt. http://bit.ly/vyc6at
      11/29/11
    • shaker33: Labor costs as well.
      11/29/11
    • Ocean Man: A bunch of pilots took early retirement last month. Many thought it signaled imminent bankrupcy. AAL said no way, we are not going bankrupt.
      11/29/11
    • Eric Stalee: Oh I know they've gone bankrupt and I was expecting eventual bankruptcy of it. Shaker, american has repeatedly cut labor costs.
      11/29/11
    • Eric Stalee: Not to the level of competitors though.
      11/29/11
    • Eric Stalee: Clarify 'they' as in other airlines.
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    • 1980XLS-2.0: Airline staff no longer overpaid imo, at least ethically. (not marketwise apparently and sadly) Banksters may disagree.
      11/29/11
    • Eric Stalee: Yeah exactly. Pilots at delta are getting a pathetic salary to be completely honest. Minimum wage soon? Wouldn't be surprised.
      11/29/11
    • Eric Stalee: Maybe the Euro can wipe out the banksters finally. But I keep forgetting that they never lose.
      11/29/11
    • shaker33: Labor cost include massive pension obligations. When margins are as thin as they are they can't pay for current and past employees.
      11/29/11
    • Eric Stalee: They could also slash the CEO's 5.2 million compensation...although I will admit it isn't quite as disgusting as some companies
      11/29/11
    • Eric Stalee: that have bad profits and still throw out giant bonuses.
      11/29/11
    • Larry Smith: Large pension obligations, old fuel burning planes (MD 80's) poor management and high labor costs, poor service, personally hate flying AA.
      11/29/11