A China Deal, Flyer Promotions, New Personell Stabilize American (PINK:AAMRQ)

Apparently management at AMR Corporation (PINK:AAMRQ) isn’t leaving any stone unturned as it winds its way through bankruptcy and that’s a secret recipe made public when General Motors went through bankruptcy: Change everything; even what works; change it for the better.

For example American Airlines, like all airlines, has been customer-centric in the past but last week the Company announced the retirement of two Leadership Team members, as well as additional changes to its global leadership team that will streamline its management organization and advance its restructuring objectives. The organizational changes are designed to further enhance American's focus on customers by fully integrating all of its customer-facing activities into the Customer organization.

That’s the stuff.

Last week AAMRQ also publicly thanked the U.S. Department of Transportation for granting its request to approve a reciprocal codeshare agreement with Hainan Airlines of the People's Republic of China. Hainan is China's fourth largest carrier.

"This decision comes after Chinese Vice President Xi Jinping appeared at the White House with President Barack Obama, who stressed that the U.S. is focused on building a better economic and strategic relationship between the two nations," said Will Ris, American's SVP of government Affairs. 

"This new codeshare relationship will promote travel and tourism and further strengthen economic and cultural ties between the U.S. and China," Ris added. "A codeshare relationship will allow American and Hainan to efficiently connect Chinese air travelers from cities throughout China to the U.S. via Beijing and Shanghai. Similarly, the approval will create more convenient travel options for U.S. consumers when traveling to China."

Last week AAMRQ also filed its annual report on Form 10-K and posted its Fiscal Year 2011 Results; the Company recorded a consolidated net loss of approximately $2 billion, which compares to a consolidated net loss of $471 million for fiscal 2010. Restructuring isn’t pretty, but it’s obvious when it’s direly needed. The parent of American Airlines filed voluntary petitions on Nov. 29 for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York.

So; lots of new passenger friendly promotions, new leadership in Customer Relations, a new deal with China… all of it good news. 

The AAMRQ 10-k also pointed out a stat relevant to all airlines and transportation companies: Taking into account the impact of fuel hedging, American paid approximately $3.01 per gallon for jet fuel in the fourth quarter of 2011 versus approximately $2.42 per gallon in fourth quarter 2010, a 24.5 percent increase. As a result, the Company paid $394 million more for fuel in fourth quarter 2011 than it would have paid at prevailing prices from the prior-year period.

Don’t know what a bankruptcy judge can do about that, but maybe something…?

Shares of American have stabilized in the last few days in the $0.53 range. 

I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.