The long reach of Internet stock mania; some speculate it could bring pilots at American Airlines to heel

Article Abstract:

As the investor frenzy over Internet-related stocks continues, some analysts think that AMR Corp., the parent of American Airlines, could help resolve the airline's contract dispute with the Allied Pilots Association by spinning off Sabre Group, an information technology company that in turn owns Travelocity, an online airline ticket and hotel reservation service. Despite losing money last year, Travelocity is valued at somewhere between $1 million and $5 million and is artificially inflating the value of AMR stock. Sabre Group now trades at around 30 times its expected 1998 earnings, while AMR without it may trade at around 5 times its earnings. Some think that by divesting itself of Sabre Group and Travelocity, AMR's true financial situation will become clearer, and this will give the airline more leverage to get the union to accept a contract that is more acceptable to AMR.

Asset sales & divestitures, On-Line Information Services, Computer Systems Design and Related Services, Contract Software & Services, Telegraph & other communications, Travel Agents, Travel Agencies, Air Transportation, Scheduled, And Air Courier Services, Videotex & Teletext Svcs NEC, Computer integrated systems design, Management, Human resource management, Mergers, acquisitions and divestments, Computer services industry, Information technology services industry, Online services, Internet services, Software support services, Negotiation, mediation and arbitration, Travel industry, Online information services, Securities, Labor contracts, Company personnel management, AMR Corp., AMR, Travelocity.com Inc., Company organization, Allied Pilots Association, Sabre Inc.

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Raising pressure, Northwest lays off 27,000

Article Abstract:

Five days into the pilots' strike, Northwest Airlines has laid off 27,500 workers. The laid off workers are also negotiating contracts with Northwest. The layoffs of more than half its workforce suggest that the company expects the strike to continue for some time, and may put pressure on President Clinton to intervene. The airline has cancelled service through the Labor Day weekend. Northwest officials estimate that even when the strike is settled, it will still take 8 to 10 days to resume all of its 1,700 daily flights.

Comment:

Lays off 27,500 workers in response to the five-day-old strike

Company Planning/Goals, Company Profile, Northwest Airlines Inc., Article

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