Originally Posted by
Carl Spackler
Just a few of the business news stories:
"American Airlines, Can't Overcome Debt, Files For Bankruptcy' - Time Newsfeed
"DALLAS — The parent company of American Airlines filed for bankruptcy protection Tuesday, seeking relief from crushing debt caused by high fuel prices and expensive labor contracts that its competitors shed years ago.....Horton said the board of directors unanimously decided on Monday night to file for bankruptcy. In a filing with federal bankruptcy court in New York on Tuesday, AMR said it had $29.6 billion in debt and $24.7 billion in assets...." - News-journal.com
"FORT WORTH, Texas (AP) — American Airlines and its parent company are filing for Chapter 11 bankruptcy protection as they seek to cut costs and unload massive debt built up by years of high jet fuel prices and labor struggles." - Associated Press
"AMR was also facing some large debt payments. The company had $1.8 billion due by the end of 2012. The net debt at the end of the third quarter was $16.9 billion. And when $7.9 billion in underfunded pension benefits and $2.5 billion in other long-term liabilities are added, the company has close to $30 billion in debt and other long-term obligations." Star-Telegram
"The parent company of American Airlines filed for bankruptcy protection yesterday, seeking relief from crushing debt caused by high fuel prices and expensive labour contracts.." The Independent
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Try as I might to find it alfaromeo, I couldn't find a SINGLE news story to back up your claim that American Airlines is where it is because of a lack of Joint Ventures and/or code share agreements.
You're embarrassing yourself. But I urge you to continue. After all, since I'm paying your flight pay loss, I want to feel I'm getting my money's worth.
Carl
Wow, Carl, you are quoting the business press, excellent source of financial analysis. Go and read some financial analysis by people that make their living doing it. Is that really what you are standing on, the headline from the Fort-Worth Star Telegram? Is this a joke or are you seriously using the Fort-Worth Star Telegram as your source for financial analysis.
American only has a little over $1 billion in unsecured debt, I will answer the question but clearly you don't have any information beyond the Fort-Worth Star Telegram. Unsecured debt is just about all that gets wiped out in bankruptcy. The rest is secured, mostly by aircraft, so they will not be able to wipe it out.
American does not have double the debt load of Delta. American (about 8.2 billion) has less long term debt than Delta (about 12.5 billion), but they are a much smaller company now. Another Carlism that flies out the window with yesterday's Fort-Worth Star Telegram. American's chief problem is a revenue problem.
Since you are so into reading newspapers, Carl, why don't you go back two years and list out the PRASM performance of American vs. Delta. Show me how each airline has done in that time. Then tell me why there is a difference. Carl, you can bluster and attack, but you can't come up with a reason why American has underperformed Delta in the last few years.
You show headlines from the press that has no clue on anything that happens in this industry. I offer analysis gleaned from researching company reports and from people that get paid lots of money to do nothing else but analyze the industry. I guess everyone else can decide which sources to believe.