American Airlines charts a course through bankruptcy

Last week's Chapter 11 filing by American Airlines (AA) and American Eagle (AE) parent AMR marks the end of the post-deregulation period as well as possibly signalling the beginning of the end of US legacy consolidation as many believe the shedding of American's baggage will position it for the US industry's final merger with the only other independent legacy, US Airways (LCC).

Across the board the feeling is this is the best thing for both AMR and the US industry because it means more capacity cuts. Delta and United are expected to be the principal beneficiaries. JP Morgan expects a 10% capacity cut from American, which translates to a USD1.4 billion, or 1-3% revenue jump for United, Delta Air Lines, US Airways, Alaska Airlines, Southwest and JetBlue in 2012. US Airways was already slated to benefit from the capacity cuts of competitors this quarter.

Even so, many are wondering whether this comes a little too late for the company to ultimately regain its former position as the US' top airline. Reading between the lines of churlish analyst comments during earning calls, one could make the case they were contemplating what liquidation would do for the rest of the industry.

Boyd Group International CEO, Mike Boyd, rejects the notion that American is not strong enough to emerge from bankruptcy largely because shedding its pension obligations, coupled with debt reduction, made it profitable even with the gas-guzzling jets. Mr Boyd cited liquidity and stated bankruptcy will make it much more cost effective and globally competitive.

He notes United and Delta have more debt than American, although several analysts disagree, placing American's debt at close to USD30 billion.

Bankruptcy is sad for many reasons but in American's case it is sadder still since one can only speculate as to where it would be now had it chosen this course in the post-9/11 period much like its peers. While it tried to cut costs, its competitors put their bankruptcies behind them, merged and created powerful networks that have become a huge competitive mountain American has to climb.

Stubbornly insisting on gaining USD1.6 billion in labour concessions in 2003 to avoid bankruptcy, paying out huge management bonuses a few years later which lost all the bon homie of the 2003 deal, and trying to power through the USD800 million cost disadvantage only postponed the inevitable, proves the old adage that 'nice guys finish last'.

Its cornerstone strategy has proved a failure and its deal with JetBlue is underperforming. In addition, its trans-Atlantic and trans-Pacific joint businesses (JBs) are also underperforming.

Jim Beal Jr.: Multiband shoes fill days ahead

This weekend and beyond, there's rock mania with several multiband bills plus cinematic electronic pop on the radio. Get moving.

Rock, rock, rock

Several stage-stretching shows spread out over the next few days offer something from the rock side for almost anyone whose tastes run to the hard edged and the alternative.

The All Stars Tour will take over Backstage Live, 1305 E. Houston St., Saturday with two dozen bands. The all-ages show will feature an indoor stage and an outdoor stage. Doors open at 1 p.m.

The lineup is set to include Emmure, For Today, Born of Osiris, Iwrestledabearonce, After the Burial, The Ghost Inside, Chelsea Grin, Attila, For All Those Sleeping, Alesana, Bless the Fall, In This Moment, Motionless in White, Sleeping With Sirens, Norma Jean, Sleeping Giant, The Chariot, War of Ages, Close Your Eyes, Texas in July, I the Breather, As Hell Retreats, The Great Commission and Sovereign Strength.

With that bill, attendees will be able to experience a bit of everything from thundering metal to rock that's only slightly less thundering. Tickets cost $28.50 in advance at Texas Trash Clothing Exchange, 2100 McCullough Ave., $32.45 from frontgatetickets.com.

For tastes that run more to the alt/art side of rock, White Rabbit, 2410 N. St. Mary's St., Saturday will welcome a Deadbeat Hero/Drunkenmonkey Promotions all-ages ArtSlam!, this one with a “Pixels vs. Panels” theme during which superheroes and arcade games will meet and mingle. There'll be music from Lost Project, Mega Man, id, Silent Minority, Mega Fauna, Muchos Backflips and DJ Doc J.

If the music is not enough, more than 40 local artists will have work on display and for sale, there'll be classic video game stations, and comics and toys, uh, collectibles, will be for sale. Cover charge is $5; $8 for minors.

Thursday night, artist management company Artery Foundation will bring its tour into White Rabbit with a herd of client bands, In Fear and Faith, Vanna, A Loss for Words, Close to Home, Ten After Two, Chunk! No, Captain Chunk and  Adestria.

But wait, there's more. White Rabbit on Tuesday will feature the '11 edition of the Rockstar Energy Drink Scream It Like You Mean It tour. This time around the Scream It tour features San Antonio favorites Breathe Carolina and Chiodos along with I See Stars, The Color Morale, Tek-One and The Air I Breathe. Tickets cost $16 in advance at White Rabbit Pizzeria and frontgatetickets.com, $19 at the door. Doors open at 5 p.m.

Hyperbubble goes radio

Hyperbubble, the wife/husband electronica/pop duo of Jess and Jeff DeCuir, is celebrating the release of its new CD, “Drastic Cinematic” (Bubble Gum), not with a live gig but with an appearance Saturday at 8 p.m. on Brian Parrish's “The Casbah” radio show on KSYM, 90.1 FM/ksym.org. The CD, set up like a movie, features the duo along with an international cast making cameo appearances. Hyperbubble will perform “Drastic Cinematic” in its entirety on KSYM. Dancing in your living room is encouraged.