This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

AMR Confronts the Bears

Frizzell says a recent financing package, which produced $2.9 billion for American, was a breakthrough. "There has been a new energy by the entire leadership team, a new focus," he says. "Since the financing agreement, Gerard has become more determined than ever to make the company successful."

Still, it can be painful to imagine Arpey reading his morning newspaper.

Early this month, European Union regulators warned American and partners British Airways and Iberia that their bid for antitrust immunity may violate antitrust rules. Antitrust immunity enables carriers to jointly discuss pricing and scheduling with partners, something that Delta, United (UAUA) and Continental (CAL - Get Report) already do. American's bid for immunity requires approval by U.S. and European regulators.

"It's hard to understand why American should have restrictions that somebody else doesn't have," McAdoo says. "That doesn't make any sense."

In September, Japanese media revealed that Delta was negotiating to invest in Japan Airlines and to replace American as JAL's partner. As the only one of the three largest U.S. airlines without a Tokyo hub, American relies on an alliance with JAL to connect passengers in Tokyo. Delta's move traps Arpey. If American is fortunate, it will spend hundreds of millions of dollars to maintain a relationship it already has. If American is unfortunate, it will lose the relationship.

In August, Delta and US Airways (LCC) said they would trade slots and other assets, giving Delta a stronger presence at New York's La Guardia Airport. "American's dominance in New York has eroded," Mann says.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LCC $0.00 0.00%
CAL $24.62 -1.10%
DAL $42.04 1.50%
TSLA $215.80 -3.00%
YHOO $37.20 3.30%


Chart of I:DJI
DOW 17,734.71 +83.45 0.47%
S&P 500 2,054.67 +3.55 0.17%
NASDAQ 4,726.9720 +1.3330 0.03%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs