By the way, it's not a borrowing binge, it's a (pricey) display of strength:

AMR Cash May Signal ?Resiliency? in Japan Air Bid (Update1) - Bloomberg.com


Some species blow up a pouch under their chin, some spread their wings and show bright plumage. Airlines bloat up their debt.

All kidding aside, once it's all said and done, and the outcome of the JAL siuation is known, they can decide which part is liquidity, and which part is refi on existing debt, I suppose. If debt for airlines is so readily available for a change, and assuming they end up gaining either a) JAL, or b) better terms on servicing existing debt, or c) pushing off existing repayments on good terms, then why not?

The only thing I don't like is the convertible part, or the stock issuance. That really would discourage investors. I don't know whether Delta gets kudos for simply issuing debt, but looking at LCC and AMR's stock performance, and market cap, it seems they don't like it much.