American finds cash cushion
#11
the author needs to realize you don't "have" anything until you exchange it for cash. I doubt anybody will need a bunch of airport slots or real estate anytime soon. my backyard pool is paid for and "unencumbered" not attached to my mortgage. So what. I will never sell the pool only, to raise cash.
Also, Eastern burned the furniture to keep the house warm, and it did not work out for them. Who are the selling the parts to ? Delta and United do not need any parts. European airlines are broke. Frontier, Spirit are flying a new fleet. So how is AA converting the "value" of parts into cold cash ?
they aren't.
bad article
Also, Eastern burned the furniture to keep the house warm, and it did not work out for them. Who are the selling the parts to ? Delta and United do not need any parts. European airlines are broke. Frontier, Spirit are flying a new fleet. So how is AA converting the "value" of parts into cold cash ?
they aren't.
bad article
#12
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Someone asked the CEO of Jetblue yesterday at one of our virtual company-wide meetings if American is in threat of going bankrupt soon. He basically said he doesn’t see any major US airline going bankrupt with the amount of liquidity they’ve been able to raise. Unless things start to go downhill again from where we are today. Take it for what it’s worth.
#13
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Someone asked the CEO of Jetblue yesterday at one of our virtual company-wide meetings if American is in threat of going bankrupt soon. He basically said he doesn’t see any major US airline going bankrupt with the amount of liquidity they’ve been able to raise. Unless things start to go downhill again from where we are today. Take it for what it’s worth.
Delta CEO said something along the same lines, except he was talking about no airlines going out of business.
#14
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Joined APC: Dec 2017
Position: Retired NJA & AA
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Dumb question here, but why is the Advantage program so valuable? I have 211K miles with AA, it seems like that'd be a liability since I could use it for several free trips.
#15
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#16
Are we there yet??!!
Joined APC: Apr 2006
Posts: 2,010
Its been quite sometime since I looked at the data but it was somewhere around 10-15% of the miles that we’re redeemed. Not to mention every few years the miles get devalued and becomes more points/miles for the same trip.
#17
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Joined APC: Sep 2016
Posts: 774
Its currency, if American Express pays .5 cent for a mile and sells to their customers for .1 cent they make money.
Customers don't view themselves as buying miles when they shop and use a card, but they are.
I think it's one of the reasons TWA went out of business.
A guy running it sold future seats to a bunch of travel agency company's, including some he owned, cheap, for money right now.
Then later the airline barley owned any inventory to sell because so many seats had been presold, but booking company's made a killing because the seats were theirs to charge and markup for.
I am sure American Express would have some legal clause in BK court for miles they have in their possession. Once they "sell" them to credit card users I doubt they care if the airline folds and the consumers currency is worthless.
The miles work well because probably no one has stoped using their airline credit card for fear of the currency devaluation down to 0.
Last edited by Happyflyer; 05-21-2020 at 11:50 AM.
#18
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Because they sells tons of miles that never get redeemed.
Its been quite sometime since I looked at the data but it was somewhere around 10-15% of the miles that we’re redeemed. Not to mention every few years the miles get devalued and becomes more points/miles for the same trip.
Its been quite sometime since I looked at the data but it was somewhere around 10-15% of the miles that we’re redeemed. Not to mention every few years the miles get devalued and becomes more points/miles for the same trip.
#19
While I don't contest the cash they all raised I don't really trust these airline CEOs when they say bankruptcy is off the table. They will ALWAYS say that right up until the bk paperwork is handed in at the courthouse. Will these airlines go bust? Who knows. However what do you expect, Doug Parker to get on CNBC sweaty and wild eyed and say his company is doomed? The SEC would be there to lead him away in handcuffs before they even cut to commercial.
#20
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Posts: 1,256
company management will always cheer-lead the company in public, in the media, etc. a CEO will never say "gee, we will be bankrupt soon" or "we kinda suck as a company"
the most important job of a CEO is do whatever it takes, within the law, to maintain shareholder value. CEO's get canned when shares tank.
the most important job of a CEO is do whatever it takes, within the law, to maintain shareholder value. CEO's get canned when shares tank.
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