A A to get $ 5.5B, plus $ 2 B MORE, if needed !!

Discussion in 'American Airlines' started by NewHampshire Black Bears, Sep 26, 2020.

  1. NewHampshire Black Bears

    Joined:
    Aug 20, 2002
    Messages:
    9,574
    Likes Received:
    659
    The NEWS is on 'BLOOMBERG' , but I don't have a subscription with B-B.

    HEY DELTA/SOUTHWEST, How do you like ' Them Apples ' !

    ( UAL, set to get a similar deal )
     
  2. lineguy43

    lineguy43 Veteran

    Joined:
    Jun 21, 2007
    Messages:
    596
    Likes Received:
    389
    I have friends that work for AA and do not want to see anyone hit the street but I hope with this bailout is no grants it is a loan that requires payback to the taxpayers and has tight strings attached. I don't like picking winners and losers in business when it comes to government bailouts.
     
  3. eolesen

    eolesen Veteran

    Joined:
    Jul 23, 2003
    Messages:
    15,077
    Likes Received:
    9,208
    Who celebrates going deeper into debt?...
     
    • Agree Agree x 2
  4. 1AA

    1AA Veteran

    Joined:
    Aug 20, 2002
    Messages:
    5,829
    Likes Received:
    4,160
    The ones that want to see failure.
    We have plenty of those around.
     
  5. dfw gen

    dfw gen Veteran

    Joined:
    Dec 1, 2011
    Messages:
    3,662
    Likes Received:
    2,584
    Doug
     
  6. Kev3188

    Kev3188 Veteran

    Joined:
    Oct 5, 2003
    Messages:
    18,148
    Likes Received:
    9,381
    My guess is WN & DL like it just fine. They've been able to secure financing on the market.
     
  7. CremaDiLimone

    CremaDiLimone Veteran

    Joined:
    Jun 8, 2016
    Messages:
    1,748
    Likes Received:
    152
    did anyone check the rates that aa is paying for it's govt. loan and how much dl is paying for it's private financing?? i hope 100 BPs more are worth not owing the govt. and it's restrictions.
     
  8. swamt

    swamt Veteran

    Joined:
    Oct 23, 2010
    Messages:
    11,519
    Likes Received:
    4,648
    Deeper, and growing.
    Tapped just 550 million so far of the 5.5 Billion and since tapping that 550 million, they are now up to 42 Billion in debt from the 32-34 Billion prior to pandemic starting. When they tap the rest of that loan it will be more like 47-50 Billion in debt. Now that is scary. A 15 Billion increase in debt will not sit well with investors and the markets.
    Read this article don't watch the video attached. The video is very old back when AA was just starting to discuss merging with US Airways.

    https://www.google.com/url?rct=j&sa...W46VVM&usg=AFQjCNHJEb3X8Akh2Ky6U_YxA2hhNUtBfA
     
  9. robbedagain

    robbedagain Veteran

    Joined:
    Oct 13, 2003
    Messages:
    10,815
    Likes Received:
    2,681
    This is exactly why I believe CH11 bankruptcy is written on the walls n with a huge debt payment coming in a year or so give or take it doesn't look good. DP was on Face the Nation yesterday he stated AA shored up more liquidity. But with more debt that loan its definitely going to be a turbulent flight
     
  10. swamt

    swamt Veteran

    Joined:
    Oct 23, 2010
    Messages:
    11,519
    Likes Received:
    4,648
    Just another reason to get an extension on the PSP done now. Could it be why they are asking for the leftovers from Delta and SWA that did not partake in the Gov loans that do have to be paid back? Are they just building the debt up in order to get approved for a BK filing?? Not wishing it here at all, but it sure looks fishy to grow your debt by 15 Billion in just a matter of months with more being requested above these amounts. I believe that SWA as well as Delta both were able to raise 15 billion in cash and reserves where AA is going further into debt by that same amount and could get even larger into debt than that when it is all said and done.
     
  11. eolesen

    eolesen Veteran

    Joined:
    Jul 23, 2003
    Messages:
    15,077
    Likes Received:
    9,208
    Pick a side or change your name to swaAAL....

    A PSP extension will let airlines like AA kick their debt down the road, and also keep WN and DL from reaping the rewards of being better run airlines. Might be good for the workers of AA, but its not good for you or the guys at DL who would benefit from AA's pain. Not sure why you can't accept the fact you have a good management team, AA doesn't, and there are consequences for both employee groups.

    Save the PSP for small businesses. They need the help and are feeling far more pain than large companies that are largely owned by banks and private equity.
     
  12. convair

    convair Newbie

    Joined:
    Dec 2, 2019
    Messages:
    14
    Likes Received:
    1
    AA is not a well run airline. I read this yesterday:

    https://www.cbsnews.com/news/transc...-parker-on-face-the-nation-september-27-2020/

    I noticed Parker’s choice of pronouns. He seemed to slip at first when he said “this- this- that loan”, so I googled “this vs that”

    This indicates something physically nearby. It may also refer to something symbolically or emotionally “close.” That can refer to something “over there” or to something that is not as symbolically or emotionally “close” as this is.

    Parker knows something. Perhaps we won’t get an extension to the PSP. He seems to be doing some showmanship while distancing himself from the gubmint. If true, THAT sucks.
     
    • Agree Agree x 1
  13. Kev3188

    Kev3188 Veteran

    Joined:
    Oct 5, 2003
    Messages:
    18,148
    Likes Received:
    9,381
    Not saying this as flamebait, but I wonder if WN & DL stayed away from gov't loans so they could possibly by AA (or UA) assets in case of BK.
     
    • Like Like x 1
    • Agree Agree x 1
  14. robbedagain

    robbedagain Veteran

    Joined:
    Oct 13, 2003
    Messages:
    10,815
    Likes Received:
    2,681
    Kev. That never entered my mind but you may be onto something there. I thought DP was trying to come up with different things to say while avoiding what reality may be to come
     
    • Agree Agree x 1
  15. eolesen

    eolesen Veteran

    Joined:
    Jul 23, 2003
    Messages:
    15,077
    Likes Received:
    9,208

    Possibly. Maybe they simply want the ability to staff and schedule their airlines to match demand.

    Or perhaps they've decided not have to further dilute their stock by issuing more warrants to the Government...

    Fact remains that they found liquidity on the private market and AA chose not to or wasn't able to find someone willing to do so at a rate they could agree to.
     
    • Agree Agree x 1

Share This Page