2020 Pilot Thread

American Airlines Will Never Lose Money Again, Says CEO Doug Parker
By
Katie Kuehner-Hebert
-
February 20, 2018
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It is a bit alarming AA has a CEO who publicly stated his airline would never lose money ever again. And additionally spent free cash on stock at prices significantly above today's value. Cash needed to weather a storm.
Now, there are serious challenges from something out of the blue. As was 9-11 out of the blue. It is always the " out of the blue" event that takes Airlines down.
You could absolutely be correct about GSW. If things go sideways, it might have to be sold and leased back, among other things, to keep the lights on.

United and Delta bought back stock, too. The difference is that their sober management teams did so in moderation. Debt was kept at appropriate levels and they are now in good shape to weather the storm. Meanwhile, Frat Boy Doug had a wild time loading up on debt and buying back stock. Good times!

The chickens are coming home to roost. The Parker regime has put the company in a situation that was completely avoidable. Earth to Doug - debt is not your friend.
 
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Doug must be thanking his lucky stars Boeing totally screwed the 737 Max up and they never delivered. Imagine the extra capacity coming on board right into declining traffic. And he gets payments from Boeing as well. Luck.
His debt level and lack of free cash are troubling. APA needs to take a yearlong vacation from contract talks.
 
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I think it’s fair to ask the question. Has Doug ever really shaken his problem with the sauce?

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I think it’s fair to ask the question. Has Doug ever really shaken his problem with the sauce?

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He has watched his personal wealth evaporate lockstep with the value of AA.
Perhaps he can get a kale milkshake and play a little foosball with the AA interns hanging out at the GSW food court. He can regale them with stories of his exploits at America West.
Possibly a little nap in one of the cool chairs they have conveniently place about, and try to escape it all....
 
He has watched his personal wealth evaporate lockstep with the value of AA.
Perhaps he can get a kale milkshake and play a little foosball with the AA interns hanging out at the GSW food court. He can regale them with stories of his exploits at America West.
Possibly a little nap in one of the cool chairs they have conveniently place about, and try to escape it all....

Doug loves being treated like a rock star by the rent seekers and no-loads that inhabit GSW in great numbers. They grin like fools as he does his annual Halloween rock pantomime and fawn over him when he walks into the employee cafeteria. By contrast, the "team members" who actually make the airline go look at Doug as a hopelessly overmatched buffoon. The airline lags the competition while Doug's Corporate Communications spin machine churns out inane stories about interns and other assorted GSW straphangers. Situation critical.
 
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[QUOTE="Black Swan, post: 1347882, member: 16281



His debt level and lack of free cash are troubling. APA needs to take a yearlong vacation from contract talks.[/QUOTE]



Not to worry the AA pilot group is by far not the sharpest....they will gladly take cuts and do whatever it’s takes to say afloat, they are a very weak group, not interested in more vacation or profit sharing better working conditions like there peers at Delta or United......Carey was a joke, Ferguson also....... Doug will clean there clock.
 
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The newer " Team Members" on Below the Line seem rattled. Hopefully they won't feel inclined to aid Doug in his newfound mess. Seeing Doug had a close brush with airline death at america west after 9-11, one would think he would be well aware of how low cash reserves and the lack thereof can be fatal. Yet he once again ignored the actions of Stephen Wolf at USAirways who led that place into the crapper by buying stock high and seeing it evaporate. Wolf was responsible for the ultimate forced marriage.
How long until Doug urges the APA to meet quickly and sign another crappy and lengthy contract? Soon.
Doug doesn't have John McCain at his beck and call anymore.
Things are not looking good for Doug. APA needs to help him out the door for good.
 
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There are 3 types of employees at AA. Those who have Doug figured out, those who will have Doug figured out and the hopelessly dim types who used to follow Chip Munn.

Parker is banking on a return of Munn to the various web boards. Doug’s goal is to con 25% of the employees with his corporate rah-rah spin. Then the master will feed the Munster and his other quislings from the old gloom and doom playbook to scare another 26% into submission.

Voila. 51% in his back pocket. Victory is his. Time for a drink.
 
Not to worry the AA pilot group is by far not the sharpest....they will gladly take cuts and do whatever it’s takes to say afloat, they are a very weak group

This is the sad, hard truth. The stories have been out there, since they were the first airline to cave on a B-scale, that they hired a lot of bottom of the barrel types. Now we see the proof. These guys can’t wait to sign anything. The fake tough talk on c&r is comical.
 
There are 3 types of employees at AA. Those who have Doug figured out, those who will have Doug figured out and the hopelessly dim types who used to follow Chip Munn.

Parker is banking on a return of Munn to the various web boards. Doug’s goal is to con 25% of the employees with his corporate rah-rah spin. Then the master will feed the Munster and his other quislings from the old gloom and doom playbook to scare another 26% into submission.

Voila. 51% in his back pocket. Victory is his. Time for a drink.


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At least the Max 737 is still grounded. And oil at an all time low. That will help ease some of the pain of the empty Jets.
Mr Parker should never have hocked the house to the rafters. He's been in the business long enough to have seen it all.
Seen it all to know the industry can, and will go sideways every 10 years or so. And cash is forever king for those times, and debt the killer angel.
 
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American Airlines Will Never Lose Money Again, Says CEO Doug Parker
By
Katie Kuehner-Hebert
-
February 20, 2018
1212-1024x683.jpg

With reports like this, AA will lose customers and the profits will go down. Not saying to the point of losing money, but, with the Maxes, C-19, and now last place of the big 4 for on time performance. Be interesting how all 3 of these will affect the bottom line come 1st and 2nd Q's results. Is it time to replace Parker? I think so.
 
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OMG! It has already happened! Just as I predicted yesterday at 5:25pm on this very thread, the Munnster came out of hibernation last night at 11:35pm and launched a FUD grenade on c&r. His new thread is linked to a story about AA bonds being dropped to distressed levels. He thus plants the seed for future surrender before changing tack and following up with some typical Munn praise of top management. In this case, he gives them high marks for “low capital spending.” Yeah, Chip. They are doing a great job, just like all the previous management teams you sucked up to.

Chip makes no mention of the out of control debt and record setting stock buybacks, as compared to our competitors, that have put us in our current pickle. No, the GSW talent is on it, folks. We need to give them our full support.

The Chipster slyly tells us later in the thread that “the sky is not falling, yet.” Be patient, readers. This is only step one. The Munn FUD machine is back in business, and business is good!