Third Party Maintenance
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goingboeing
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Buck said:
Buck, I do not think that AA Tul will be able to attract 3rd party either.
TUL M&E is worth a lot more if it is operated completely as a 3rd party MRO.
If all of TUL M&E was operated by someone such as AAR it could generate several billions of dollars per year of revenue.
AA has a huge debt payment due sometime this year and where are they going to get the money to make the payment?
well to get 3rd party contract work there has to be a effort to get it. does anybody really believe that aa was serious about getting third party contract work in mci? if you do your probly on crack. all aa wanted to do was to try and keep the workers working until they got the airplanes they wanted done. and thats what they did, they got there airplanes and now there getting rid of what they didnt want, the employees. i was laid off out of mci in dec, and still havent found another job. now i am looking to go back to school and get out of aviation all together. if my son ever tells me he wants to work on airplanes, i am going to kick him so hard he'll wonder why that thought ever entered his mind, lol. i wish you all luck and hope you make it, my airline career is over.
goingboeing
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mike7867 said:
Mike, thanks for your posting and I would also steer any young person away from aviation as a career choice.
It's just a matter of time until the wages and benefits are so low that the only workers the airlines will be able to get is illegal ailens.
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<_< I can't argue with any of the previous posts. Here are the numbers as of today: 321 AMT's, 10 Inspectors, 12 Title I Aircraft cleaners, 69 Title II, 14 FSC, 87 Title V Stock, Total 513 Union brothers, and sisters!!!!! Reduction Date: 6/10/05!!!!! 🙁
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<_< Buck----- That's not what they're telling us! They're saying it's due to the cancellation of work on our 23+ ex-TWA aircraft (MD-80's) still setting in the desert! And the downturn of the economy due to the price of fuel!!!!!You'de think they'ed want those planes ready, to maxamize our position if one of our competitiors should happen to go belly up???But I'm sure the third party work, or lack of, is factored in there also! 😉 Another train of thought has it that they're trying to get reed of as many of the old timers as posible, and if third party work should happen, back fill MCI with younger true nAAtive americans!!! Maybe all of the above is true!Buck said:
goingboeing said:
AMR has huge debt principal payments due in 2006-2007; AMR does not have "huge" debt payments due this year.
Where will it get the money? Same place it has always gotten money: Passenger ticket sales and cargo revenue.
MCI transplant said:
On this one, I agree with you about having the planes in the desert ready to go if a competitor folds. I think they have already returned the TWA operating certificate back to the FAA and shut down the TWA llc. operation. So they probably won't be able to fly those planes under TWA specifications. They should convert those planes to AA specs and if a competitor does NOT fold then take some 757s and go into more cities in Europe (like CO is doing) and use these newly reconfigured ex-TWA super 80s to replace these 757s.
goingboeing
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aafsc said:
I would not make decisions on the future of AA based or whether or not a major carrier fails.
This could never happen or happen too far down the road to provide AA any benefit.
GE Capital continues to prop up failed airlines [UAL and USAir] and its anyone's guess how long they will continue to do so.
AA is going to rise or fall based on what they do and not what the "other guy" does.
goingboeing
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FWAAA said:
Maybe I'm missing something here but AA is spending more money than it is taking in.Where is there any net income left[from ticket sales and cargo] to pay the creditors after AA pays monthly operating expenses?
goingboeing said:
Don't forget the difference between net accounting losses and negative cash flow. Most of 2004's net loss was non-cash GAAP items like depreciation/amortization. Last year, AMR had positive cash flow from operations of $717 million, net investments (CapEx) of $1.05 billion, and net borrowings (net of debt repayment) of $331 million. Those balance out to break even cash flow. Cash and short term investments actually increased during 2004 by $323 million.
2004's unit revenue from Pacific operations was up 15% from 2003, and for Europe it was up 8.4%. Recently, AMR said that 2005 Q1 mainline unit revenue was up between 3.5% and 4.5%. Revenue is actually improving. That revenue will pay the bills. Nothing left over as profits, of course.
http://yahoo.reuters.com/financeQuoteCompa..._wen7883_newsml
Profits may never return. We all hope they do, but the primary concern now (as it has been for the past 3+ years) is to avoid running out of cash. So far, AMR is doing an ok job at not running out of cash, especially since it is paying its pension contributions (contrast to UAL and USAir, which did not pay their 2004 contributions).
With higher fuel prices in Q1 2005, AMR probably had slight negative cash flow in the first quarter. But management has a plan for that - it has already announced yet another cut in the catering budget to slash another $120 million or so. That's the customer contribution: Higher fares (higher unit revenue) plus smaller F meals.
On this year's debt repayments: AMR has $659 million of debt due this year, and $2.5 billion in 2006-2007. The 2005 amount is managable, but the 2006-2007 repayments will be impossible unless something changes. A cash crunch will happen in 2006 unless major changes occur.
This year's pension contributions are expected to be $310 million, of which AMR has probably already contributed a large part (we'll know for sure in a couple of weeks). Pension contributions in 2006-2007 are expected to be significantly larger than this year's $310 million.
If USAir and UAL survive much longer, AMR will probably face a real cash crunch by mid-2006 unless oil falls to $25 - $30/bbl.
Agreed. That is why I said if another carrier doesn't fail they should put 757s across the Atlantic to Europe (CO seems to be successful in this and AA also with BOS-MAN) and replace these 757s domestically with the super 80s in the desert. International seems to be AA's best bet right now.goingboeing said:
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Hopeful said:
hopeless, I have been reading some of your posts over the past few weeks and have noticed some common repetitive traits you possess. You are truly a "Debbie Downer"!!! You never have anything postive to say, or inject anything positive to the topic of discussion. You, my friend. Must have a real problem! We do understand the misfourtunes that have been dealt to all employee's of AA, but their comes a time when you must "suck it up" and deal with the situation before you.... <_<
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amfa: The YUGO of the labor movement
Where bargaining means YOU GO....!
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