Friday, October 12, 2007
Irony Alert: Stock Market Punishes American Airline for NOT Going Bankrupt
"During the industry downturn after the September 11, 2001, terrorist attacks, American was one of the most frugal spenders and, in some areas, aggressive cost-cutters as Mr. Arpey avoided the easier path taken by rivals in bankruptcy-court proceedings. Now, investments to improve operations for the long haul, including better customer service and new aircraft interiors, are adding to the carrier's high costs. "They have a lot more work ahead of them than other names because of the fact that they haven't been through bankruptcy," said Standard & Poor's airline equity analyst Jim Corridore, who has a "hold" recommendation on the stock."