On AMR: We hate to say we told you so…
Nearly seven weeks ago, we footnoted about what seemed like an interesting disclosure at AMR (AMR), the parent company for American Airlines, which disclosed a sizable increase in the number of airworthiness directives it had received in its 2007 10-K. At the time, the stock was trading at around $14.50 a share.
Fast forward to today and the massive cancellations taking place: over 1,000 canceled flights and because this isn’t weather related — like the problem that kept me stuck in Dallas an extra day last month — American is covering the costs of hotel, ground transportation and other expenses, not to mention the cost of lots of overtime for the folks actually checking the wiring on the MD-80s, one of the aircrafts mentioned in the filing under the appropriately named “risk factors”. So perhaps it’s not so surprising that AMR’s stock has lost over a third of its value in seven short weeks.
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April 10th, 2008 at 11:16 am
Michelle, do your readers a favor and research Rule 240 and write about it.
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Here’s a snippet:
If your flight is delayed, cancelled or you miss a connecting American Airlines flight, due to a schedule irregularity
1.American Airlines must confirm you on their next flight (on which space is available) at no additional cost.
2.If there is an alternate American Airlines flight that will arrive at your destination earlier than the alternate you have been offered, you have the right to be confirmed on this American Airlines flight at no additional cost, even if first class space is all that is available.
3.If the alternate American Airlines flight is not acceptable to you, you have the right to be confirmed on the flight of a different airline at no additional cost.
April 10th, 2008 at 1:33 pm
My understanding — at least from the Consumerist — is that the rules surrounding 240 are a bit vague and possibly no longer valid. But if someone knows something different, I’m all ears.
April 11th, 2008 at 12:23 pm
The New York Times discussed this in 2006:
http://www.nytimes.com/2006/09/10/travel/10praccancel.html?_r=1&pagewanted=print&oref=slogin
Rule 240 appears to have ceased existing thirty years ago, and wasn’t even formal back then. Invoking it now will get you laughed at.
There is fine print in your ticket, different for each airline. Much like Michelle loves reading the fine print, I recommend you do it also.