One of the world's best aviation analyst is someone you've never likely heard of: Bill Swelbar. This week, on his Swelblog, he gives an astute assessment of what the AMR bankruptcy potentially means for the industry and consumers:
"The lack of news from it [AMR] or the bankruptcy court probably has a lot of people - union leaders, media, employees, communities – wondering what is taking so long. That’s the first key to understanding this airline bankruptcy is different and why other airlines such as United, Delta and Southwest as well as the federal government and even regional carriers are keenly watching and waiting. Unlike all the other airlines that have gone through Chapter 11, American doesn’t have a Debtor In Possession (DIP) lender breathing down its neck. That’s because the AMR board of directors made a strategic decision to file for bankruptcy with more than $4 billion in cash in the bank. That’s more cash than any airline that’s ever entered bankruptcy has had on hand and one of the highest totals in U.S. corporate history."
According to Swelbar, that $4 billion cushion gives AMR the time it needs to make the very best of its reorganization. Read the entire post here.