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American Airlines stock crashes, burns. Dramatic graph added!

FelixDeCat

FelixDeCat

Lifer
AMR shares fell 80% today on the filing of Chapter 11 USC bankruptcy reorganization.


Would you fly on AMR despite the chapter 11 filing? In the past, some passengers have been left high and dry when an airline went belly up. 😱

z
 
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Failing in the marketplace used to mean you were gone for good. You went out of business.

Now it means you get a Mulligan, or several.

Often it's business as usual, with little sign of bankruptcy at all, save for the announcement.
 
no worries, the government will give them your tax money, err, the 1%'s tax money to bail them out
 
K1052 said:
It was inevitable. Competing against Delta and United who already reorganized had been sapping them for some time.
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Oh yeah I've been waiting for years. A few of my friends are pilots with them and two are near retirement age. One got nervous a few months ago of this 11 coming one day at work and literally filed for his partial that day when he got home. The other can take full next month but is nervous. If they filed 11 while these guys were waiting to be paid their retirement, they'd likely lose it.
 
crab said:
The other can take full next month but is nervous. If they filed 11 while these guys were waiting to be paid their retirement, they'd likely lose it.
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Ugh...

I'm retired after 25 years in the aviation maintenance game. Only thing I miss is the awesome people I used to work with.

Best of luck to your buddies.
 
FelixDeKat said:
Would you fly on AMR despite the chapter 11 filing? In the past, some passengers have been left high and dry when an airline went belly up. 😱
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AMR is NOT going to go belly up. EVERY major legacy airline in this country has been through Ch. 11. They're doing this in order to renegotiate contracts and cut labor costs. You can thank the unions.
 
Is this the next comeback kid for share price, and thus THE stock to buy?

I can't imagine AMR failing completely, and might just emerge stronger. But I'm no stock guru, just gamble in the market from time to time, have some great gains sometimes and massive losers the next time. I'm batting .500 I think.
 
destrekor said:
Is this the next comeback kid for share price, and thus THE stock to buy?

I can't imagine AMR failing completely, and might just emerge stronger. But I'm no stock guru, just gamble in the market from time to time, have some great gains sometimes and massive losers the next time. I'm batting .500 I think.
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Ugh. Just because a company survives Ch. 11 does NOT mean their shareholders won't get slaughtered. Generally when a company goes through Ch. 11 reorganization the old shares become essentially worthless and new stock is issued. Just look up GM in google finance. Have you noticed how it only goes back to late 2010? That's because all those "old" GM shares became toilet paper.

http://en.wikipedia.org/wiki/Chapter_11#Stock

If the company's stock is publicly traded, a Chapter 11 filing generally causes it to be delisted from its primary stock exchange if listed on the New York Stock Exchange, the American Stock Exchange, or the NASDAQ. On the NASDAQ the identifying fifth letter "Q" at the end of a stock symbol indicates the company is in bankruptcy (formerly the "Q" was placed in front of the pre-existing stock symbol; a celebrated example was Penn Central, whose symbol was originally "PC" and became "QPC" after the company filed Chapter 11 in 1970). Many stocks that are delisted quickly resume listing as over-the-counter (OTC) stocks. In the overwhelming majority of cases, the Chapter 11 plan, when confirmed, terminates the shares of the company, rendering shares valueless.
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FelixDeKat said:
Would you fly on AMR despite the chapter 11 filing? In the past, some passengers have been left high and dry when an airline went belly up. 😱
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chapter 11 is not belly up. Smaller airlines... no way. American Airlines is large enough where it will not fold up and vanish overnight. They are at least making money... just that salaries, fuel, and planes cost a shit ton of money. Now they can redo some contracts and hopefully stay in business.

This is why the old saying is true... Investing in an airline is the best way to turn a billionaire into a millionaire.
 
Specop 007 said:
I've had good luck on United as well as Southwest. The United flights were actually a bit nicer, they had an in flight movie.
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I've had exactly 3 flights on United.

First one - fine.
Second one - fine.

Third one - they overbooked. They bumped me because I only checked in at the gate 50 minutes prior to the flight (was a connection - got off first leg, went straight to gate). I get that sometimes shit happens - but here's what fucking FRIED MY ASS about the whole thing - they had room in first class they tried to sell me.

That's right - pay for first class or wait for the next flight - 11 hours later.

Being in my early 20s, I didn't have the $700 they were asking for the ticket, so the plane took off with empty seats, while I watched it.
 
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