Thread: Bankruptcy
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Old 10-21-2021 | 07:02 PM
  #586  
dera
In a land of unicorns
 
Joined: Apr 2014
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From: Whale FO
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Originally Posted by Al Czervik
I studied underwater basket weaving in college and got mediocre grades at best… so I don’t know what any of this means. What I know is things are drastically better than they have been and it’s the beginning of a substantial hiring boom. You’re in a good place. With that said, anything is possible. I’d say if one legacy declares BK the other two will as well. I wouldn’t think they could compete with the one that trimmed all the fat.
tl;dr, operationally AAG is losing almost a billion dollars per quarter which is completely unsustainable with the debt load they have. The only market cap they have right now is a promise of a better future, they have negative shareholder equity. But the retirements and business fundamentals almost guarantee there won't be much threat to the junior pilots, they can shrink organically if they want as long as the PSP keeps going on. And with the PSP, they will maintain enough cashflow to keep things rolling.

Without PSP, this would be an existential crisis for AAG.
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