When something negative happens to the St. Louis business community, can our civic and political leaders just admit it? While the truth might hurt, ridiculous attempts to sugarcoat reality have led St. Louis to ignore the obvious many times during the past 15 years, and that delays appropriate response.
The latest example is the news that American Airlines and American Eagle’s parent companies are filing for Chapter 11 bankruptcy protection. AMR Corporation announced early Tuesday that it's seeking Chapter 11 bankruptcy protection. American blames its woes on its labor-contract rules, which it says costs the firm more than $600 million more than other airlines; it also reminds us that it did not seek bankruptcy protection after the 9/11 terrorist attacks. According to a press release from the firm, the “reorganization” is in the "best interest of the companies and its shareholders."
This restructuring, however, will not be in the best interest of the region and Lambert-St. Louis International Airport. St. Louis had already lost its hub status with American, and now the airport can look forward to fewer flights and fewer St. Louis-based employees.
But I doubt that is what we will hear throughout the day. We probably will hear that this really is a good thing for St. Louis. The crazy talk most likely will include: “It will help get American Airlines back on its feet.” “It will lead to more traffic through our beleaguered airport.” “Because of the economy, the move could not come at a better time.”
Dick Fleming, RCGA president and CEO, is in his last few weeks (maybe days) here as he prepares to leave his high-paying job, after more than 15 years at the helm. He has been the region’s leading cheerleader when bad business news comes our way. In 2001, he was among those who supported AMR Corporation acquiring Trans World Airlines. It was the best thing that could have happened to us, given TWA’s shaky status, Fleming said. I wonder if he’ll be the one to try to pass that nonsense off on us again.
Remember our civic leaders’ rear-end kissfest when InBev bought out Anheuser-Busch? That was for the best too, right? I certainly am glad the brewery remains open, but thousands of jobs were slashed once the dust had settled. Some of the company’s commitments to charitable causes, such as Variety the Children's Charity of St. Louis, also reportedly dipped dramatically. Now comes news that A-B will not be a part of the Tournament of Roses Parade for the first time nearly a century. The Clydesdales will not be pulling a St. Louis-themed float on Monday, January 2, in Pasadena, Calif. (New Year’s Day is a Sunday, so the parade will be the following day.)
All for the best, right?
American says it must now “reduce costs and debt to remain competitive.” It will likely do that in larger markets like Chicago and Dallas/Fort Worth. It also could target its St. Louis operations.
I can’t wait to hear why this is really a good day for St. Louis. I’m sure I’ll hear those words from Mayor Francis Slay, County Executive Charlie Dooley, or Fleming—who’ll probably be catching an American flight when he leaves here for good.
Commentary by Alvin Reid
