-Airlines are not sure they will be able to make an FAA deadline to retrofit older planes with a safety feature to prevent accidents like TWA Flight 800, according to this article in Newsday. (subscription required) "Airlines for America, a trade group with members from major U.S. carriers, notified the federal agency that the airlines will not be able to install the safety feature, a flammable-suppression system, to half of their fleet by 2014 and complete the retrofit by 2017 as required," the article said.
-This great column by Andrew Sorkin in the New York Times takes a look at the payout AMR management might get if they successfully maneuver the company through bankruptcy. AMR chief executive Tom Horton did not get a new contract when he took over the top spot when the company filed for bankruptcy so it is unknown what kind of golden parachute Horton would get if AMR merged with another, but here is Sorkin's take. "Mr. Horton and his management team stand to receive somewhere between $300 million and $600 million if he can make it through bankruptcy court without merging first with a rival like US Airways. In an odd twist of the bankruptcy process, airline management teams have typically managed to extract 5 percent to 10 percent of the company’s shares for themselves upon exiting Chapter 11, with the C.E.O. often getting 1 percent."
-And about 200 passengers were stranded by United Airlines in China for three days while their Boeing 777 was being repaired. A brawl apparently ensued at one point between passengers and airport staff, according to this column in The Consumerist. The flight finally arrived in Newark on Saturday, instead of its scheduled arrival of Thursday.
Love the hypotheticals. Where is it written that the AA management team is going to win big if it exits bankruptcy as a standalone carrier? Just because the thieving Tilton team at United managed to squeeze blood from that turnip, no one should assume the same from AA.
It is also pretty ridiculous to make such a one sided speculative assertion and then gloss over the actual written agreement that Doug Parker has in place in the event his carrier ceases to exist. $20 million to unload his airline. Now that's a windfall!
Posted by: casual observer | July 16, 2012 at 12:24 PM
Caual Observer you are very naive it you think AA mgmt won't take a chunk of the company stock.
Posted by: Harry Mudd | July 16, 2012 at 01:49 PM
Who is being naive now, Harry? AA's execs will get what the bankruptcy judge gives them. Nothing more, nothing less.
As casual observer said, Sorkin's piece is nothing but speculation disguised as reporting.
Posted by: John S | July 16, 2012 at 03:58 PM
Since when did bankruptcy rules apply to the corporate crooks that drove airlines into bankruptcy??????? Give us all a factual example.
Posted by: CeoCrookWannaBe | July 17, 2012 at 05:11 PM
I love when reporters write on what might happen as if it were fact. I though journalism waited until it has some in a document somewhere before saying what someone was going to get paid. Jeez, there isn't even an "anonymous source" in this piece. Way to jump the gun.
And Dewey defeats Truman....
Posted by: Wings367 | July 17, 2012 at 10:13 PM