According to Kat O'Brien the Yankees are satisfied with their roster and may pull their offer from Andy Pettitte.
While I understand this, I believe that we should still resign Andy. Hughes and Kennedy would both benefit greatly from a full year at AAA, and entering the year with Hughes as the 6th starter would be great in my opinion. I also believe we need Pettitte to round out our rotation. Without him, the only player who is an almost lock for 200 innings is CC Sabathia. Chien-Ming Wang usually floats around there, but is coming off an injury and may not reach the mark next year. Chamberlain won't be allowed to make it to 200 innings, Burnett is obviously an injury concern, and Hughes missed a large portion of the year last year due to injury. I believe having another virtual lock for 200 innings in our rotation would do wonders.
Another route they could take is signing a cheaper option to compete with Hughes and Kennedy. Some names you could hear are Carl Pavano, Paul Byrd, Braden Looper or even Pedro Martinez.