Originally Posted by
dera
They are the same experts who have been predicting it for the past 5 years. Eventually they will be right.
Not to say it's not happening, but "Wall Street Expert" is pretty much an oxymoron.
AA is rolling in cash, and they have borrowed at a very cheap rate. Almost all of their fleet renewal is funded. They are in a very good place right now.
I can agree with you on this,.
Warren Buffett said it best, when the market trends lower he sees buying opportunities. This is why you also see mergers during down cycles. Parker is a finance guy, he did see cheap finances and took advantage. Was it needed or will it pay off? We will most likely say yes when we look back 5 years from now and rates to borrow are much higher. A down cycle is not coming any time soon in my opinion.
THE AIRLINES WILL BE JUST FINE. This is not the same industry of the past. Yes growth can slow, but it’s still growth in the grand scheme of things.
The down cycle of the past will not be the down cycle of the future due to various factors: technology, demand (take your kids phone away and see what happens), expectations, retirement, corporations cash on hand! These factors will help not only airlines weather the storms, but various corporations for years to come.
We are living in a new age. Take advantage, don’t let fear stop you from demanding your fare share of what you are worth (skills, demand, financial & family time sacrifices you’ve made and make each week). The money is in the purse believe it!