American Airlines Bankruptcy Requirements

With AA in bankruptcy, there should be some conditions made for emerging from it. First, the creditors should require that they sell some routes. I’d recommend that the RDU to DFW be sold to Delta, or at least some of the travel times on that route. Since AA charges ~800 round trip for that route and still goes bankrupt, it’s obvious they can’t manage their business.

Second, outside of this bankruptcy but an example of how some legislations simply don’t work, the absurd Wright Amendment should be repealed. This would allow carriers such as Southwest Airlines to fly directly to Love Field from states that are not adjacent to Texas. How of all states, pro-business Texas, could have such an anti-competitive bill passed to protect an airline is beyond me.

So, for once, think of the customer and the economy, repeal that absurd law and make AA sell some routes.

In an interesting find, apparently the commercial domestic airline industry as a whole, has never made a profit in the five decades of existence. A loss of over ~$30B (that’s billion) dollars, enough to make even Dr. Evil raise another pinky. So when we talk about funding a national rail system that may never make money, remember that investors really aren’t bothered that much about their losses in the airline industry apparently.