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American Airlines bankruptcy thoughts?
Posted: Tue Nov 29, 2011 11:34 am
by KTinTX
Have been watching airfare for several months now for our trip in June. American has had the only somewhat affordable fare out of Houston, but even that is much higher than we've paid in the past.
I had pretty much decided to go ahead and lock it in since the other airlines are easily 30% higher and then the announcement of AA's bankruptcy hits.
Any thoughts on what this might do to the fares? My guess is that under closer review of the competition AA would raise their fares, but bankers may see it as a chance to lower fares a little and try to completely fill their schedule with butts-in-seats.
so...buy now, or wait and pray?
Posted: Tue Nov 29, 2011 1:06 pm
by msgcolleen
It depends on when you are going! If it's after high season, I would wait and PRAY!

Posted: Tue Nov 29, 2011 11:24 pm
by rpplano
Historically, bankrupcy filings (if Chapter 11) are followed by fare sales as bookings fade.
Wait and see....
Posted: Wed Nov 30, 2011 9:05 am
by nuendelcapecod
I booked our AA flights when the fare dropped from $1180 for two to $980. The current price of $720 (from Logan in Boston) is down to $380 pp. Sometimes you can't win. But I think Priceline and Orbits have a sometimes-available option that credits you if your booked fare drops. Worth a check? I will next time...

Posted: Wed Nov 30, 2011 10:33 am
by RickG
AA has been working at a disadvantage to other airlines that have already restructured. Ultimately, AA will end up with a cost structure that will let it compete with United/Continental, Delta/NW, US Air/America West. We may see fewer flights and fuller planes on AA than in the past, but we see that every where else.
I wouldn't hesitate to book AA over Spirit at the same price.
Cheers, RickG
Posted: Wed Nov 30, 2011 8:36 pm
by JJShaw
I cant blame anyone for being concerned if they have tickets and they have filed for bankruptcy...Id be a nervous wreck..I can see where you would be upset if the tickets are now much cheaper...But I heard a funny on the radio about the airline and wanted to pass it along...
The DJ said..Their stocks are about 20 cents each...and if you think about it..you could buy half the company for what it would cost you to check a bag...lol
I have no idea what the stocks are..or if he even knew...I just thought it was a cute saying..
Posted: Wed Nov 30, 2011 9:00 pm
by brooklyn
If the fare is reasonable and the flight is convenient for you, you shouldn't worry about flying AA. As Rick G pointed out they are going through the same restructuring that Delta, Continental, UAL etc all went through and those airlines are still flying the not so friendly skies.... One of AA's goals with the bankruptcy filing is to allow it to replace older (=crappy) planes with newer equipment. Of course that won't happen between now and your next STJ visit. PS - they are also trying to get a better deal with the pilot's union, so they guy/gal flying your plane may be a tad cranky.
Posted: Thu Dec 01, 2011 10:25 am
by Muhaha
Agreed, it is safe to book on AA. I have end of March tickets and I'm not at all concerned. I think that the biggest thing that will come out of this is that they will merge with US Air, similar to the UA/CO and the DL/NW mergers which both happened under similar bankruptcy circumstances.
Posted: Thu Dec 01, 2011 10:42 am
by rpplano
It's a Ch. 11 filing, no need for anyone to worry except senior employees and retirees. They are a near monopoly at DFW and a close second at several other airports. They NEED to replace their upper management with Southwest executives and learn how to make a profit. IMO living in DFW market really contrasts the two airlines.
Posted: Thu Dec 01, 2011 1:02 pm
by KTinTX
I like seeing the thoughts. I'm not worried a bit about massive flight cancellations etc. My original thoughts were to get opinions on the two schools of thought:
a) all AA's competitors flying MIA/ATL/SJU to STT are doing it at a 25% increase over their fares and that for the forseeable future they would raise them
or
b) We should put our fares on sale across the board to show strong bookings for the next several quarters
I agree with RickG that they have been competing against airlines that had already restructured their debt and could turn a 'profit' because many of their old debts had gone away.