Originally Posted by
sailingfun
Actually as management has stated at roadshows UAL SWA and AMR can't afford to adjust capacity downward fast because of the cost of leases and payments on their newer fleets. Delta on the other hand can very quickly send aircraft to the desert with little to no financial penalty. The 4th floor even calls the 88 fleet the accumulator aircraft.
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AMR's debt will peak next year at approx $30B. At the same time, DAL's will reach the neighborhood of $5B and stay there. (That's a nice neighborhood). Consider the debt service on $30B that must be paid before any profit is realized. That, coupled with our owning a large portion of our fleet gives us a huge cushion to be flexible during a downturn.
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