AA moves to reject leases on six more MD-80s and 11 757s

[BoeingBoy]

Nothing unusual - publicly traded companies usually change the value of owned assets to reflect market value annually (assuming a change in value). I'm assuming that these 757's are some of the older ones owned (although possibly mortgaged).

Jim

 

[Buck]

Nothing unusual - publicly traded companies usually change the value of owned assets to reflect market value annually (assuming a change in value). I'm assuming that these 757's are some of the older ones owned (although possibly mortgaged).

Jim

I am sure you are correct that the 757's are owned. What I am asking, is this a step toward returning or writing these aircraft off in bankruptcy? Or shutting down the 757 domestic fleet, even over a longer time as new aircraft arrive.

 

[BoeingBoy]

What I am asking, is this a step toward returning or writing these aircraft off in bankruptcy?

That's a question I can't answer. As I said, it's perfectly normal to write down the value of owned assets to reflect market value even outside bankruptcy. Unless there's something in the filing to indicate otherwise, you'll just have to wait, watch, and see what happens with those planes. I see tail numbers in the filings and even that doesn't tell me what type of plane it is.

Just a guess since I have no idea about AA's loads to some of the European 2nd tier destinations, but I assume that AA will need some number of 757's for that service until a replacement comes along. Whether the 737MAX or A321neo will be that replacement remains to be seen. Nether is far enough along to carry any guarantees of performance.

Jim