Originally Posted by
Excargodog
Yeah, but the LAST sale of junk bonds was at 12%. As those 3.5-4.0% bonds become payable, it is unlikely they will be able to roll it over to new debt at anything resembling 4%. Look at what the yield to payout is of AA bonds in the secondary market is right now.
???
It's all long term debt. AA isn't financing any more bonds AFAIK and won't until things improve, and by then rates will have normalized (hopefully). We don't even need normal traffic by then, but people booking out into the future. We need a viable path.
Hands down I'm not as nearly concerned about our debt, as I am about the lack of a long term plan for the next 5-10 years.
United had a similar issue post merger and was kinda like a rudderless boat adrift at sea. Munoz worked through it and rallied the employees.