by Lufthansa Flyer | Nov 29, 2011 | Uncategorized |
The parent company for American Airlines, AMR, has filed for Chapter 11 bankruptcy this morning.
The board announced the decision stating that it was in the best interest of the company to go through this reorganization.
During the process, American Airlines services will remain unaffected. Flights will take place as scheduled. Members of American’s Frequent Flyer program, AAdvantage will remain unaffected. As is normal for an airline going through a reorganization, operations will continue as scheduled during this process
Shareholders and Creditors are the parties that stand to be affected the most by this filing. Typically in a structured reorganization Shareholders in the company lose their equity since a company comes out of a reorganization as a new corporation, issuing new shares. Former shareholders are not entitled to any new shares as part of this. Creditors normally enter into agreements with the old company that will attempt to make them whole. In some cases, creditors are issued equity in the new company.
As we’ve seen with previous airline bankruptcies, travelers are generally left unaffected. So if you are an American Airlines Loyalist or member or Aadvantage, I don’t think you have much to worry about, and there’s good chance you’ll have a better airline after they get through this process.
For more information on this breaking story, here are the various news media links you can reference:
Bloomberg
Reuters
Fox Business News
CNN
by Lufthansa Flyer | Nov 28, 2011 | Uncategorized |
Congratulations To The Winner For Week 1 Of My Airline Photo Contest!
The Winning Image submitted by Robert S. :
Beautiful picture capturing an approach to Boston (BOS).
Now before everyone starts crying foul that I picked a Lufthansa Airplane, the fact that its Lufthansa had NO BEARING on my decision. Out of all the entries, this was the nicest one.
An Honorable Mention has to go to Michelle S. for this shot:
Robert wins an I-tunes gift card for his efforts. Thanks to everyone for entering. We had about 20 entries, so I would definitely like to see the amount of entries increase. If you are reading about the contest for the first time, please go back to my original post for the details.
by Lufthansa Flyer | Nov 28, 2011 | Uncategorized |
In a story in the Australian Business Traveler on 25 November, Lufthansa’s Frank Püttmann, Head of Lufthansa Group Communications for the Asia Pacific region confirmed that the entire Long Haul LH Fleet will be retrofitted with new business class seating. This has been much anticipated for quite a while.
In his comments, Mr. Püttmann stated that the retrofit will begin soon after the new 🙂 Boeing 747-8i 🙂 is put into service starting in the first half of 2012. He also mentioned that the fleet wide retrofit would be completed within a matter of months rather than years.
I hope that this is accurate. Retrofitting an entire long haul fleet the size of Lufthansa’s is a gargantuan effort and months ultimately add up to make years but I’m going to be the optimist. Glass half full, upgrade WILL clear kind of attiude….
I will be one HAPPY LufthansaFlyer if in fact this is accurate and we see the new Business Class come on line next year. What are your thoughts? Are we traveling in the new Business Class Seat in a significant number of aircraft 18 months from now?
