AA CUT DUE TO DEBT

Worldport said:
Parker explained the debt strategy. If the fiance people aren't worried about it no need for us to worry. Stick to encoding and avoiding Bob
Hey Worldly, this article wasn't written and our stock isn't down close to a buck and a half because the "finance people" are all smiles the direction AA is headed. Our stock was close to $55 at one time and now it's target is $27. Nope, no worries.
Oh, and you are the one with the Bob infatuation, see if you can track him down...tell him hi for me.
 
AANOTOK said:
Hey Worldly, this article wasn't written and our stock isn't down close to a buck and a half because the "finance people" are all smiles the direction AA is headed. Our stock was close to $55 at one time and now it's target is $27. Nope, no worries.
Oh, and you are the one with the Bob infatuation, see if you can track him down...tell him hi for me.
So you don't think they will make billions this year? Does someone with your seniority working in DFW really have a concern?Yes Bob is a helluva man, your lucky to have him I should only be so lucky.
 
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As to the debt: if/when fuel prices go skyhigh again, AA will be burning less fuel with its more efficient planes. And interest rates are very low.

MetalMover said:
Wasn't bk supposed to take care of some debt? 50% of INDUSTRY debt. This ain't good.
Not really - AA had very little unsecured debt when it filed. Debt wasn't why AA filed. AA filed so that it could jam the more efficient contracts down the pilots' and FAs' throats. It was all about section 1113.
 
JFK Fleet Service said:
So much for Kowtowing to Wall Street with all those stock buybacks.
Most of the stock buybacks were at reasonable prices; better to buy back stock when it's selling cheap than when it's expensive.
 
AANOTOK said:
No worries, Doug has the industry solved...
The arrogance of CEOs knows no bounds. Just wait until the next fuel price spike and economic recession/depression hits. Consolidation may have increased profits during the low-fuel price boom times, but I'll bet losses return during a high-fuel price recession/depression.
 
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FWAAA said:
As to the debt: if/when fuel prices go skyhigh again, AA will be burning less fuel with its more efficient planes. And interest rates are very low.


Not really - AA had very little unsecured debt when it filed. Debt wasn't why AA filed. AA filed so that it could jam the more efficient contracts down the pilots' and FAs' throats. It was all about section 1113.
 

Most of the stock buybacks were at reasonable prices; better to buy back stock when it's selling cheap than when it's expensive.
 

The arrogance of CEOs knows no bounds. Just wait until the next fuel price spike and economic recession/depression hits. Consolidation may have increased profits during the low-fuel price boom times, but I'll bet losses return during a high-fuel price recession/depression.
Make whatever spin you like, that's fine. The bottom line is this is a company making billions and  it is still being downgraded. Maybe you and others may think it is a genius move to carry all this debt, Wall St. does not subscribe to this approach.  Major US events regarding the economy should remind us what happens when people carry debt that they can no longer sustain.  Remember the mortgage crisis? 
And I do agree with you that Chapter 11 is being used by companies all around the country to rid themselves of those pesky labor agreements. 
Also, you are right as to what will happen when fuel spikes substantially. That is why we need a contract sooner rather than later. 
 
It's clear this company used the debit cuts as a excuse to kill the contracts legally and with the help of the court systems fighting for them while placing us in financial harms way.
So the real question is how long do we all sit and wait for a real contract?
While we wait, the company continues to make money off our underpaid backs, without a retro package in place the push to speed this process  up is mute.
We are in control of the main meal ticket and are certified to make sure these winged pieces of metal are in FAA standard IAW condition.
It's time to get off ones butts and keep everyone safe in the air and on the ground.
People have to realize not doing your job up to and over the IAW standards, you can be just as guilty as not doing the job at all.
If your in doubt the company will be more than happy to roll the camera footage back and show you a walk around or the amount of time you might have over looked something.
This further pushes the importance of your underpaid responsibility and risks you take with owning a A&P.
So don't think about the $450,000 you are behind since 03'.
Keep the planes safe and your A&P safe in your back pocket.
The company is only renting your A&P, you own it. 
 
MetalMover said:
not really how bk works. Its restructuring not deleting. 
 
FWAAA said:
As to the debt: if/when fuel prices go skyhigh again, AA will be burning less fuel with its more efficient planes. And interest rates are very low.


Not really - AA had very little unsecured debt when it filed. Debt wasn't why AA filed. AA filed so that it could jam the more efficient contracts down the pilots' and FAs' throats. It was all about section 1113.
 

Most of the stock buybacks were at reasonable prices; better to buy back stock when it's selling cheap than when it's expensive.
 

The arrogance of CEOs knows no bounds. Just wait until the next fuel price spike and economic recession/depression hits. Consolidation may have increased profits during the low-fuel price boom times, but I'll bet losses return during a high-fuel price recession/depression.
 
Two problems, 
 
right now it is a huge "if" that in the near(isn) future oil will get to a point where American is getting big cost savings of Delta/United/Southwest. They are already not the lowest in maintenance CASM (Delta is). 
 
Horton, now Parker, ran (or is running) American just like the industry was being run in the 1990s. Buy a ton of new planes, rack up the debt and talk about how awesome and simple the fleet will be later on. Problem is, if a big capacity cut is needed (which generally happens anytime fuel doubles) American is going to be parking airplanes and still paying leases/payments on that brand new fleet and getting zero revenue from them. Sound familiar? That was a reason they had to go into bankruptcy the last time........ 
 
 
Also, yes interest rates are low but interest will still be there. No big deal when margins are 20% but if it gets back to razor thin margins American will be posting losses due to interest payments while Delta won't. 
 
 
 
Having said all that, debt is a huge problem at American but Delta and United are also getting downgraded to sell by a lot of analyst because of terror attacks and Brexit. Delta is down ~8%, United is down ~9% and American is down ~10% right now. My worry for American is that the world economy is going to slow down and they aren't anywhere remotely close to being prepared for it. 
 
700UW said:
Actually not, he was at AA, NW and HP.
 
okay? What does that mean to me? has nothing to do with what I said at all. 
 
 
Parker has always been in it for the short term profit. (which he does very well) 
 

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