Originally Posted by
scambo1
Alfa;
I am not one to give much credence to the talking heads, but his quotes were Associated Press re-printed in other papers.
I guess you posting on an anonymous web-board doesn't require any level of press reliability, but since most of us know your real world identity, this does smack of deflection.
Carl backed up his assertions as challenged by you. If this is all you got, the round goes to Carl.
Scambo (unbiased judge)
BTW, Carl says the problem is debt, you say the problem is revenue. What's the difference? Debits dont equal credits. If this is just a Johnson measuring contest please let me slip out of the way and you two just keep on comparing.
Carl claims that AMR's lack of profitability is debt related. Carl said AMR's debt was double Delta's.
In the 3Q, AMR spent $171 million in interest expense on about $8.2 billion in debt. Delta spent $229 million in interest on about $12.5 billion in debt. American reported a net LOSS of $153 million and Delta reported a net PROFIT of $547 million, after all special items. Do the math, if a magic fairy comes along and wipes out all of American's debt and let's them keep all their airplanes, American still has a third quarter where their profit is $18 million. $18 million profit in the third quarter, you know the money quarter, summer travel, the one that is supposed to support you the whole year. $18 million if they eliminate ALL THEIR DEBT. Sure they don't have a revenue problem, it's all about debt.
With ZERO DEBT American would still lose money for the entire year, they would still lose money for next year, and the one after that. Is this really all about debt?
If debt is the problem, how come Delta spent more on interest and still reported a healthy 3Q while American sucked it once again?
Is American's debt double Delta's or not? I am not sure but when I went to elementary school, I learned that 8.2 was not double 12.5 but in fact 8.2 was less than 12.5. Maybe I am wrong.
In the third quarter Delta increased PRASM by 11% while American increased PRASM by 5.8%, but you know that has nothing to do with profitability, it's all about debt. It is completely unrelated to profit that Delta was able to raise fares to cover the run up in fuel prices while American lagged behind once again, revenue doesn't matter, it's all about debt.
So Delta has more debt, Delta pays more in interest every quarter than American. Delta also has been leading the industry in PRASM growth while American is the laggard. Delta makes a PROFIT in the third quarter while American has another LOSS. Delta will be solidly profitable this year and next while American is in bankruptcy.
Yes, Carl, proved it, it's all about debt. Revenue doesn't matter, it's all about debt. Hey, if some guy sitting on the desk at AP says it's so, it must be true.
Since we all know your true identity too, you are not an unbiased observer. But hey, let's not look at real numbers, they are just a deflection of the truth.