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Fri, Mar 14, 2003

American Airlines Sliding?

No Longer Part of S&P 500, World's Largest Airline Teeters on Edge

American Airlines, largest in the world since it took over TWA two years ago, may be headed down the Chapter 11 chute, analysts say. Just this week, AMR was pulled from the Standard & Poor's 500 index [that's one way to keep that index from sinking farther, eh? --ed]; and its employees are contemplating whether to give the airline the $1.8 billion in cuts the managers say they need, to make up an anticipated $4 billion shortfall -- and that's counting on no major impact from a war, or another terrorist attack.

American joined the industry group ATA in asking for taxpayer support and help with its insurance expenses, moves that would put the struggling airline even farther under the government's control -- that would relinquish operational freedoms that would be impossible to ever regain, and might be lost for the entire industry, forever.

FMI: www.amrcorp.com

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