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

[NewHampshire Black Bears]

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 )

 

[lineguy43]

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 )

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.

 

[eolesen]

Who celebrates going deeper into debt?...

 

[1AA]

Who celebrates going deeper into debt?...

The ones that want to see failure.
We have plenty of those around.

 

[dfw gen]

Who celebrates going deeper into debt?...

Doug

 

[Kev3188]

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 )

My guess is WN & DL like it just fine. They've been able to secure financing on the market.

 

[CremaDiLimone]

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.

 

[swamt]

Who celebrates going deeper into debt?...

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

 

[robbedagain]

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

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

 

[swamt]

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

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.

 

[eolesen]

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.

 

[convair]

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.

 

[Kev3188]

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.

 

[robbedagain]

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

 

[eolesen]

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.

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.