I'll be watching....was surprised that AMR is kicking the negotiations with the Mechanic's union back into mid-December. I guess if they can't square things with the pilots, what's the point in even talking with those grease monkeys.
Theres a new wrinkle and its the pilot retirement lump sum look back. September and October 1 had several hundred pilots (total) leave the company for voluntary retirement so they could capture the 60 day lookback on shareprice for AMR and still get a lump sum distribution.
APA will not be negotiating with the company until the 27th of November now. Just whatiffin' here but if a significant number of pilots put in for retirement December 1 fearing a BK filing it could be the dealbreaker. AMR wouldn't want to be in the position of borrowing money to pay for pilot retirement that will leave them short of pilots for the holidays.
Better to just file and put a stop to the retirements November 25th.
Chip, You're unbelievable! You don't read anything I say do you? Again, for the really slow (that's you, Chip), NONE of the pilot retirement funds are based on AMR stock price. The A fund is the average of the pilot's best 60 months times years of service times times a couple of other things. IF there is a bankruptcy and IF AMR ends up pushing the A fund off to the PBGC, the pilots who have been here a real long time will get over 4000 per month from the PBGC rather than 600-800k. But they have known the odds for a while. The young guys will get around 2500 per month from the PBGC. The other fund is the B fund. American puts 11% of the pilot's salary into a mutual fund type investment that invests in everything- stocks, bonds, etc. but not AMR stock. This is dependent on how the market does as to its daily unit value. The 60 or 90 day lookback has NOTHING to do with AMR and how much $ it has. It makes contributions to the B fund on a regular basis. If the value of the B fund total is greater than 80% of what is needed, all pilots get a B fund lump sum. If it is less than 80%, the lump sum becomes an annuity and if it drops below a lesser %, it can be frozen. What the look-back feature does is allow SOME lucky pilots to take a little more from the overall pile of money that has been put away for years. I.E. the pilots locking in higher get a little more and those remaining have a slightly smaller unit value at that time, though they have years to make it up. It is like a lottery. Some pilots like it, some don't, but it will not affect AMR's bottom line one bit since the money has been put aside for years and can't be touched by AMR. The unit value to decide whether it is > or less than 80% is only figured out once a year. Last year it was 88.something and this year it is supposed to be greater. Also, there is a penalty of 7% per year on the A fund if someone leaves before 60. So, lots of concepts here, but basicly, the B fund will still get paid. The A fund may or may not. An awful lot of people already retired. But, there are between 400 and 500 pilots at AA over 60 now. If anyone is going to retire, it will be them since they have no penalty. That will affect American's ability to operate since most of them are Captains, but other than that, it will not hurt American that much. And then again, a lot of them may not leave because they are divorced and their wives already got their A funds in the settlement. The facts.