Originally Posted by
3GreenKSNA
Big fear grenades tossed today, with zero supporting details beyond, "If it happened at Eastern it could happen to AA."
Anything is possible but with load factors the way they are I don't see a third of the fleet going away. Once the economy takes a hit of course some planes will get parked that's the cyclical nature of the business.
-Keep the dirty side down
No "fear grenades". I think many of you misunderstand where I am coming from.
I am not at all saying AA can't make it going forward. They WILL make it, and aren't going anywhere. They will become a smaller, leaner, more efficient and profitable machine.
They will do this through BK; renegotiating purchase and lease contracts, writing down debt, crushing the pension plan and putting it on the backs of the taxpayers through the PBGC, and undercutting labor and the unions. Nothing new here.
You have to understand that BK, unlike for individuals, is a business tool that is more freely wielded these days. When the downturn comes, do you honestly think AA is going to be the "benevolent corporation", service all that debt in a declining economy, and take care of their creditors and shareholders when they absolutely do not have to, and can easily make their case to a bankruptcy court? YGBSM!
DP knows he is out in a couple years. He will take AA through BK, trim it down, reduce costs, and increase efficiencies. He will take his golden parachute and turn over a much stronger company to his replacement. He walks away the "bad guy", and leaves the new guy in a great position to take AA into the future.
It's just business.