Originally Posted by
ACEssXfer
Jesus guy. Define “very good chance”.
I’m also a little confused as to how American is not “economically viable” but other airlines are? Demand returns and AA is a profitable company. If it does not......well.......I guess United will “buy all our gates” since they make money with no demand but we do not.
I don’t have to define it. The market did and forced American to pay a premium on 11%+ debt. That’s a warning sign, not a seal of approval. The debt service on the recent debt will likely absorb lots if not all the pre-Covid profit, that itself under the powerful assumption that we all quickly return to pre Covid status quo.
Honestly, I don’t think another legacy will buy assets if they come up for sale, it will be the ULCCs/LCCs who aren’t as encumbered with debt and have more flexibility, just like the 1980s.