The only people who are going to come out of American Airlines’ bankruptcy with a nice profit is the lawyers and consultants.  AA has hired a truckload of both to guide it through this bankruptcy although one would argue that, for the money, AA’s attorneys and consultants have provided much value thus far from what I can see.

The Allied Pilots Association, AA’s pilots union, has sent out a letter to its membership stating that they are now spending $500,000 per month on their own attorneys and consultants to represent their best interests during the bankruptcy.   No doubt other unions are engaged similarly at this point.

I think people need help and good counsel in these times but given the stated goals by all parties (get draconian labor cost cuts or maintain the status quo), I suspect that all parties are going to suffer long and hard during this process.  What each side needs is leadership willing to think outside the box.  What each side has is leadership determined to suck up to its stakeholders.

Filed under: Airline News by ajax
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