American Airlines files for bankruptcy - who gets hurt the most? Of course, their workers.

[sad sally]

Experts believe AMR stands to save billions by restructuring its obligations in bankruptcy.

"AMR will no longer have its defined benefit pension plan, helping absorb nearly $7 billion in debt," said Morningstar equity analyst Basili Alukos. "I imagine the company can save between $1.2 billion to $1.5 billion in labor costs, in addition to savings on repair and maintenance and better fuel burn."

AMR said the bankruptcy has no direct legal impact on operations outside the United States. It also said it was not considering debtor-in-possession financing.

http://newsandinsight.thomsonreuters.com/Legal/News/2011/11_-_November/American_Airlines_files_for_bankruptcy/?du

[Bonhomme Richard]

1. I wonder how this will affect a close friend of mine who is....

a Captain near retirement.

[sad sally]

2. Company ethics haven't changed much - in fact may be worse - than they were when

the raping of promised pensions started happening in earnest in the 1990's. The most cost effective way of savings for companies is to promise more in pensions rather than severance pay. Then, viola, they go bankrupt - pension funds gone, costs the company nothing - no severance, no pension.

Sadly, companies have also been allowed to use promised pension money to pay for other things - like executive pay and bonuses, taking over other companies.

Hope your friend's employer is kinder...

[Bonhomme Richard]

3. I guess I will find out as soon as they make

any announcements.

[workinclasszero]

4. They are doing it to break their union contracts

Of course the golden parachutes and bonuses will still be their for the corporate whores who run the company, count on that!

The 99% workers, OTOH, are going to take it in the shorts, guaranteed.

[MisterP]

5. wellp, time for another bailout, union busting, and "he saved 600 billion jobs!" crowing

as a bonus, the Bachmannites can cry "bailout socialism," mobilizing both parties!