Up to $1.2 Billion Dollar Q2 Charge

[LGA Fleet Service]

The biggest U.S. carrier, in a Securities and Exchange Commission filing late Wednesday, announced it will take a charge in the second quarter of up to $1.2 billion to cover further downsizing of its fleet and routes as it struggles with runaway operating costs.

Story

 

[jimntx]

Per your subtitle: This action will neither hasten nor delay a bankruptcy filing if that is what is in our future. Most of this "charge" is an on-paper writedown of company assets. You ground an MD80; so, on the books instead of showing it as an asset worth $100, you show it as an asset worth $50.

Of course, this writedown might just bring the real asset value of the MD80s closer to reality. I mean, does anyone know of an airline clamoring to get their hands on some old, gas-guzzling MD80s?

 

[CubsFanJohn]

If I am intfering correctly this is a Cash Writeoff correct or is it a Paper Value Write off? Oil hit $145 today.

 

[The Goose]

If I am intfering correctly this is a Cash Writeoff correct or is it a Paper Value Write off? Oil hit $145 today.

Paper.

 

[eolesen]

It's all paper writedowns. No additional debt, nothing out of the employees' pockets.

Markets liked the announcement, by the way. Stock jumped up about 40c / 10% after the news broke.

 

[NewHampshire Black Bears]

Easy for me to say I know, cause I'm not Active like most of you.

But I'd like to suggest to you all the following;

If he were at the Helm,...."What would CRANDALL do" during this BRUTAL (JET-A) period ?

Before you answer,....RLC was a staunch opponent of BK-7/11/13 !

IMHO, CRANDALL would do..Exactly what Arpey is doing, by SHRINKING the airline, to avoid BK, or Stealing Defined benefit pensions/retireee Medical ETC.

(LIKE "SOME OTHER" CARRIERS WE KNOW)

 

[CubsFanJohn]

Wasn't it RLC who threatned park all the 727's during the 1990 Gulf War IIRC?