Originally Posted by
stbloc
You said it best, what difference does having the most cash have when you have far more debt. Plus I believe they are obligated to have at least 3 billion in cash or creditors can come knocking. AA bonds are trading in distress territory. Again AA has more debt then United and Delta combined and AA is more leveraged at the moment then when they filed BK in 2011. Let that sink in for a moment.
Amount of debt is meaningless. The important factor is the cost to service that debt. I said what is important is your burn rate which isn’t just debt. Using $12b in cash to pay off debt would’ve resulted in roughly a $50m a month improvement in cash flow....hardly worth mentioning when we go through $3.5b a month...
I don’t know anything about a low limit on cash on hand. Way over anyone who posts on here paygrade most likely, unless it was made known publicly.
Isn’t Boeing our largest creditor? It’s in their best interests for us to continue operating, even pushing back payments. Who else is buying their jets now?