Originally Posted by
FlyPurdue
Because their capitol (as they have 7B in cash) is probably making considerably more than 5% - therefor if they just paid out of pocket - they would be missing out on that considerable opportunity. Every capitol decision is stress tested against a sophisticated NPV model. At the end of the day 750M is only 1.7% of their FY 2018 revenue.
It's capital. Not capitol. Go take a look at the latest AA balance sheet instead of just pulling numbers out of the air. They have approximately 4B in cash.
If that is the reasoning for this loan then OK. I do not know. As AA only manages stock price for the current quarter, this move won't help them in that regard.