Unrestricted cash expected to be down to $3.1 billion at year end

[ZundappBella]

All of this brings up a question that I've had for a while, At one point within the past year or so we had 5 point something billion on hand, and only 1 billion in 2003. We only had a couple of profitable quarters in that time which mostly went right back out to pay bonuses. So where did the extra $4b come from, not to mention the reduction in debt that we have had since 2003. Did we really borrow, mortgage, sell that much, or is this some sort of accounting hocus pocus that I don't know about. I'd prefer some actual details from someone who knows and not the usual "they're all crooks" (I've already come to that conclusion) type answer

 

[FWAAA]

Some of the money was from new debt issued after the concessions in 2003. Some of the money came from sales of new stock. Some came from asset sales (Orbitz, Hotwire, ARINC, American Beacon, etc). All told, those items added about $4 billion or so of cash. In previous threads where the same question was asked, I compiled detailed responses listing the dollar amounts from each item - I'll look for it.

 

[BoeingBoy]

Did we really borrow, mortgage, sell that much, or is this some sort of accounting hocus pocus that I don't know about.

Not quite hocus pocus since it's following standard accounting rules....

Some expenses on the profit and loss statement are not cash going out the door but "paper" expenses - just an entry on the P&L statement and nothing more. One of the bigger ones, at least normally, is depreciation - writing off the value of assets over time. Any airline that owns a significant portion (even is borrowed against) has a pretty large depreciation expense.

FWAAA keeps tabs on AA's finances a lot closer than I do, but other possibilities are selling stock, borrowing, etc. Anything that brings cash in or frees up restricted cash.

Jim

 

[eolesen]

Go ahead and talk big about "bring on the bankruptcy" and burning down the place, but think long and hard about the ramifications of those actions, guys and gals...

If you haven't noticed, even though fuel is down, and Obama's promised great things which may or may not be deliverable, it doesn't change the fact that unemployment and foreclosures continuing to rise, 401K's have shrunk, and trying to refinance right now only works for the very few who aren't upside down on their loan to value...

Groundhog Day is just around the corner. Regardless what Punxsutawney Phil happens to see, I suggest you prepare for a longer winter...

 

[FWAAA]

Some of the money was from new debt issued after the concessions in 2003. Some of the money came from sales of new stock. Some came from asset sales (Orbitz, Hotwire, ARINC, American Beacon, etc). All told, those items added about $4 billion or so of cash. In previous threads where the same question was asked, I compiled detailed responses listing the dollar amounts from each item - I'll look for it.

Here's the post detailing the dollar amounts from new stock sold, new debt issued, and assets sold:

http://www.usaviation.com/forums/index.php...st&p=526119 (post #36)

The $2.9 billion detailed in that post doesn't include recent stock sold, new debt issued or proceeds from the sale of ARINC or American Beacon.

 

[frontline]

BK's ok with me. Bring it on. Maybe we can get some new management and some executives with leadership skills. The current set of overpaid executive shoe clerks is devoid of any leadership ability whatsoever. It's hard to see how the executive managers relationship with it's workers could be any worse.

As someone whose livelihood is at stake here, I find your position reckless at best!

We can't allow ourselves to roll over and play dead every time management brings out the BK card. But we also need to clue in to the reality that we have a LOT to lose in a BK filing.

In the end, only compromise between the "snap backs" and the "stand pats" is going to get us a new contract that won't jeopardize our jobs and retirements.

 

[777 fixer]

BK's ok with me. Bring it on. Maybe we can get some new management and some executives with leadership skills. The current set of overpaid executive shoe clerks is devoid of any leadership ability whatsoever. It's hard to see how the executive managers relationship with it's workers could be any worse.

Of all the airlines that have gone the BK route how many were around ten years latter?

 

[Hopeful]

As someone whose livelihood is at stake here, I find your position reckless at best!

We can't allow ourselves to roll over and play dead every time management brings out the BK card. But we also need to clue in to the reality that we have a LOT to lose in a BK filing.

In the end, only compromise between the "snap backs" and the "stand pats" is going to get us a new contract that won't jeopardize our jobs and retirements.

Unless, of course, you are a greedy fat cat executive who gets his money REGARDLESS.

 

[Hopeful]

If you haven't noticed, even though fuel is down, and Obama's promised great things which may or may not be deliverable, it doesn't change the fact that unemployment and foreclosures continuing to rise, 401K's have shrunk, and trying to refinance right now only works for the very few who aren't upside down on their loan to value...

And of course, EXECUTIVE compensation and PUP pay is immune from the negative economic situation.

 

[FrequentFlierCA]

Unless, of course, you are a greedy fat cat executive who gets his money REGARDLESS.

Carty tried to pull that bs, but does his handiwork still stand? The execs are paid quite a bit in shares, which is at-risk compensation. In the event of a bankruptcy, those become worthless.