AA will be bankrupt soon?

[Man of the People]

While AA cries the blues, can someone explain how they manage to purchase new aircraft? It appears all the unions are being played for suckers. No money to pay its employees, but money for new planes. Sounds like a sham to me. Flights are oversold, stock is up, morale is down. <_<

 

[1AA]

While AA cries the blues, can someone explain how they manage to purchase new aircraft? It appears all the unions are being played for suckers. No money to pay its employees, but money for new planes. Sounds like a sham to me. Flights are oversold, stock is up, morale is down. <_<

Post Bob Crandall era...... BUSINESS AS USUAL!!

 

[FWAAA]

While AA cries the blues, can someone explain how they manage to purchase new aircraft?

Lenders are more than willing to lend billions of dollars to buy new, fuel efficient airplanes. Are there lenders out there willing to lend billions of dollars to pay to employees in wages? And even if there were, an employer would have to be brain dead to borrow money they don't have to pay wages. In fact, brain dead Carty did just that for the 18 months leading up to the 2003 concessions. Let's hope they never do anything that stupid again.

It appears all the unions are being played for suckers. No money to pay its employees, but money for new planes. Sounds like a sham to me. Flights are oversold, stock is up, morale is down. <_<

No money to pay its employees? More than $37 billion has been paid to employees during the 6+ years since the concessions were forced down the employees' throats. Employees will be paid about $6 billion this year. There isn't money to "restore and more" as some employees have dreamed of the past couple of years, but the employees keep getting paid. Besides, for all the big talk about "demanding" more money, most employees have continued to show up and do their job in exchange for the reduced pay. Anyone seriously think they won't keep showing up and doing their job in exchange for the current pay?

 

[AA Tulsa Mechanic]

While AA cries the blues, can someone explain how they manage to purchase new aircraft? It appears all the unions are being played for suckers. No money to pay its employees, but money for new planes. Sounds like a sham to me. Flights are oversold, stock is up, morale is down. <_<

🙄

 

[Barfbag]

🙄

AMR can buy aircraft because it's never filed for Bankruptcy.

Evidentially AMR's credit is still sound, and the company is struggling in a very tough environment, planes are full because of less flights, meaning more crowding on most routes.

In the future, there will be more saber-rattling by unions but in the end everyone will recieve a slice of the pie, however small as it gets.

 

[FWAAA]

AMR can buy aircraft because it's never filed for Bankruptcy.

Evidentially AMR's credit is still sound, and the company is struggling in a very tough environment, planes are full because of less flights, meaning more crowding on most routes.

Well said. Here's what Arpey and Horton said about new aircraft financing last October:

Thomas W. Horton

Unfortunately, given the confidentiality provisions of those contracts I can’t disclose that. But those were significant moves forward in financing. We’ve obviously accelerated our fleet replacement plan which we feel pretty good about and in the last month we’ve also secured most of the financing with respect to that. The backstop deal covers 2/3 of the 76 airplanes, now we’ve got permanent financing for 20 of those, so the way to think about that is almost all of those airplanes are now financed one way or the other. In this market I think that’s good. We’ve got more work to do but I think we’re in a pretty good spot right now.

Gerard J. Arpey

If I could just add something to that, I would again credit a lot of good work by our treasury team and a lot of my colleagues in the finance organization. But the point I’d like to add to is that I do think that I have been saying and my team has been saying for a long time that it should matter to the capital markets who pays you back and who doesn’t. As you know we have paid folks who have lent us money over many, many years; we’ve paid them back and I’d like to think that does matter and is mattering right now.

http://seekingalpha.com/article/100110-amr...=-1&qa=true

Perhaps repaying one's debts is advantageous?

 

[700UW]

US Filed bankruptcy twice and they are taking delivery of new planes this year A330-200s and A321s.

 

[JimJimmyJim]

http://seekingalpha.com/article/100110-amr...=-1&qa=true

Perhaps repaying one's debts is advantageous?
[/quote]
AA is in debt to it's labor, how about repaying that debt?

 

[FrequentFlierCA]

I can guarantee you'll be happy about those new (fuel efficient) aircraft when oil pushes back past $100 or $150. The airlines with the newest, most fuel efficient fleets will be the ones to survive the next oil price spike. Retiring those MD80s as quickly as possible is a very smart management decision, for those of you who think management sits around all day and produces nothing but spreadsheets.

 

[upsilon]

US Filed bankruptcy twice and they are taking delivery of new planes this year A330-200s and A321s.

Yes, the former airline corporation named USAirways filed C11 BK twice; but it was bought by (merged into) America West, which assumed its name, not its fiscal reputation.

[But you knew that since you said in another thread that "worked" for US in 2005. I don't know if that means you still work there]

Also, "taking delivery" does no mean "purchase" or "taking title". It undoubtedly involves a simple dry lease or lease/purchase through EETC (Equipment Trusts Certificates) in which the lessor retains title.

 

[700UW]

America West did not buy US Airways, it was a merger of two companies, funded by outside investors with US Airways arranging the financing, not America West.

And US is buying the planes directly from Airbus, paid the down payments, the progression payments and delivery payments.

They did do a sale/leaseback on one of the new A321s recently.

 

[HottootrotNyc]

Lenders are more than willing to lend billions of dollars to buy new, fuel efficient airplanes. Are there lenders out there willing to lend billions of dollars to pay to employees in wages? And even if there were, an employer would have to be brain dead to borrow money they don't have to pay wages. In fact, brain dead Carty did just that for the 18 months leading up to the 2003 concessions. Let's hope they never do anything that stupid again.



No money to pay its employees? More than $37 billion has been paid to employees during the 6+ years since the concessions were forced down the employees' throats. Employees will be paid about $6 billion this year. There isn't money to "restore and more" as some employees have dreamed of the past couple of years, but the employees keep getting paid. Besides, for all the big talk about "demanding" more money, most employees have continued to show up and do their job in exchange for the reduced pay. Anyone seriously think they won't keep showing up and doing their job in exchange for the current pay?

Restore AND MORE? You would think people would be worried about the thousands that are on the street that are getting paid NO MORE.... Jesus people.

 

[upsilon]

America West did not buy US Airways, it was a merger of two companies, funded by outside investors with US Airways arranging the financing, not America West.

Yeah! Sure! US Airways was in BK at the time the acquisition/merger was announced. Maybe it would refresh your memory to read the Press Release. But here are the pertinent details from Wikipedia, the free encyclopedia:

On May 19, 2005, America West Holdings Corporation announced it would acquire the … US Airways Group. The new entity is named US Airways Group and is headquartered in America West's former corporate offices [in Phoenix]. US Airways Group corporate offices in Virginia were shut down, and most US Airways management were laid off. America West CEO Doug Parker became CEO of the merged companies, and his management team remains in control.
....
Beginning January 2006, all America West flights were branded as US Airways ...... though many flights were described as "operated by America West." ….. the merged airline retained America West's callsign, "CACTUS".

 

[700UW]

Your wrong, I was at CCY on the IAM M&R Negotiating Committee, here read this to enlighten yourself.

HP did not have money to by anyone, US approached Parker about a merger and Lakefield through Seabury and Associates raised the money from outside investors to fund the M E R G E R, not an acquisition.

Read this

But America West did not have enough cash to lift US Airways out of bankruptcy. It was up to Luth, the US Airways adviser, to find enough investment money to piece the deal together and give the combined company a fighting chance to thrive in the battered airline industry.

Luth and US Airways had serious discussions with more than a dozen investors. They all requested shared participation in a merged airline -- no one wanted to take on all the risk. The Retirement Systems of Alabama, which rescued US Airways from its first bankruptcy in 2003 with a $240 million investment, stands to lose it all if US Airways emerges from bankruptcy and issues new stock.

Luth went after the companies that had something to gain from an investment in US Airways and America West. Aircraft maker Airbus agreed to provide $250 million in exchange for US Airways' pledge to buy dozens of A320 jets in the future. Regional commuter carrier Air Wisconsin Airlines made a $125 million investment in exchange for a jet services partnership. The Appleton, Wis.-based airline will fly for the merged carrier on a contract basis.

Credit card companies may provide $300 million in order to reach new customers. And once-bankrupt Air Canada offered $75 million, good for a 7 percent stake in the new company, in exchange for the rights to bid on the maintenance contract for the new carrier's fleet of 361 jets.

Air Canada was the last in line.

 

[FA Mikey]

Yet it was still AWA with the cash from other investors that took Usair out of bankruptcy and in to AWA.