AA has 20 BILLION in debt. That's 1 BILLION in debt service per year. When is the last time they made 1 BILLION in a year?
PS i got this info from
http://www.businessweek.com/investor...612_815502.htm and he makes the above sound like it's all good news...
so you don't have to read all the fluff...
"HEAVY DEBT. On the negative side, we're concerned that the board can change the number of authorized shares without shareholder approval, and that the board may amend the corporate bylaws without shareholder approval.
There are risks to our recommendation and target price. We consider the shares to be very volatile and high risk for several reasons. First, oil prices have risen dramatically and may continue to rise, which is offsetting a lot of other cost cuts at the company.
In addition, AMR has a very high debt load of about $20 billion (including operating leases) and an underfunded pension plan, both of which are likely to be a drain on cash resources over the next few years. The net pension obligation at the end of 2005 exceeded the fair value of the assets in the plan by about $3.2 billion. AMR is attempting to get its debt level down, but this won't be an easy task, in our opinion. "