Originally Posted by
payingdues
lmao ya its in the creditors best interest to have AAG declare bankruptcy. What creditors? Airbus and Boring? What are they gonna do with 800 planes. Idk if you’ve looked around but planes aren’t going for much these days. The creditors want AAG to survive so that they have guaranteed income. If AAG goes bankrupt do you think they’ll be dancing and cheering at losing out on money?
What are you even babbling on about? Chapter 11 doesn’t mean they sell off airplanes and assets. You’re thinking of Chapter 7. And yes, IF it is in the best interest of the creditors and bond holders for AA to go into bankruptcy then that’s what they’ll do. There are benefits to bankruptcy for AA too. Namely the ability to reduce cash burn.
Bankruptcy is likely sooner or later anyway. They’ll have well over $40B in debt coming out of this. Their most profitable year they earned a little over $2B. We won’t see profitability like that for several years and in the meantime they have a lot of expensive debt to service. We’re still in the beginning of this whole event from a historical industry perspective. This is the 4th inning and there are 5 more to go.