How low can they go!
06-23-2020, 06:21 PM
#41
Gets Weekends Off
Joined APC: Jun 2014
Posts: 589
Originally Posted by Al Czervik
06-24-2020, 12:05 AM
#42
Gets Weekends Off
Joined APC: Jan 2018
Position: FO
Posts: 180
Originally Posted by Al Czervik
The numbers if anyone is concerned with facts anymore:
Debt: 33.44B
Cash: 4.0B
Cares payroll grant 5.8B
Cares Loan: 4.75B
Available liquidity: 6.8B
Cash at end of June: 11B
AA is burning 40-50m/day and decreasing.
Debt: 33.44B
Cash: 4.0B
Cares payroll grant 5.8B
Cares Loan: 4.75B
Available liquidity: 6.8B
Cash at end of June: 11B
AA is burning 40-50m/day and decreasing.
You also have two Cash lines, what’s the difference between the 11B and 4B?
06-24-2020, 02:10 AM
#43
You scratched my anchor
Joined APC: Feb 2011
Posts: 4,876
Originally Posted by Dobbs18
none of those are “new” orders correct? The $8.4B for new aircraft expenditures was already on the books, right? My thought was they would talk to Airbus and get the XLR deliveries pushed out a little, no...If the international travel comes back however we will need a 75/6 replacement quickly.
Correct. The 54 planes coming this year were from previous orders.
06-24-2020, 02:21 AM
#44
You scratched my anchor
Joined APC: Feb 2011
Posts: 4,876
Originally Posted by iHateAMR
Sorry, trying to wrap my head around your numbers, is the CARES loan apart of the 33.44B debt or is it in addition? Im assuming you separated it out to show math for Cash on hand?
You also have two Cash lines, what’s the difference between the 11B and 4B?
You also have two Cash lines, what’s the difference between the 11B and 4B?
The cash at the end of June is the 4B plus the cares grant and the first stock offering.
06-24-2020, 07:05 AM
#45
Gets Weekends Off
Joined APC: Sep 2016
Posts: 774
Originally Posted by Al Czervik
I believe the cares act loan will be on top of the 33B.
The cash at the end of June is the 4B plus the cares grant and the first stock offering.
The cash at the end of June is the 4B plus the cares grant and the first stock offering.
AA debt can only be the debt it started the year with plus the loss of each quarter.
Even issuing new stock can be a tool to transfer debt from creditors to shareholders, not new spending.
I'am sure big banks are telling them they have to issue some stock to keep some "skin" in the game.
06-24-2020, 07:12 AM
#46
You scratched my anchor
Joined APC: Feb 2011
Posts: 4,876
Originally Posted by Happyflyer
We dont know how much of cares act loan is to service the other loans. Haven't seen anything that it's all "new" debt.
AA debt can only be the debt it started the year with plus the loss of each quarter.
AA debt can only be the debt it started the year with plus the loss of each quarter.
I believe the cares loan is servicing debt. Either way is the same debt.
06-24-2020, 07:52 AM
#47
Gets Weekends Off
Joined APC: Sep 2016
Posts: 774
Originally Posted by Al Czervik
I believe the cares loan is servicing debt. Either way is the same debt.
I personally think pre-covid they were only keeping 4weeks of liquidity on hand, and since March 15 have realized they need ~12 weeks on hand.
It's expensive to quit living pay check to paycheck, while taking an earnings hit, but doesn't directly correlate to taking on new debt.
06-24-2020, 10:50 AM
#48
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Joined APC: Nov 2013
Posts: 1,764
06-24-2020, 07:29 PM
#49
Gets Weekends Off
Joined APC: Dec 2007
Posts: 618
Originally Posted by Happyflyer
Even issuing new stock can be a tool to transfer debt from creditors to shareholders, not new spending.
I'am sure big banks are telling them they have to issue some stock to keep some "skin" in the game.
06-25-2020, 03:31 AM
#50
You scratched my anchor
Joined APC: Feb 2011
Posts: 4,876
Originally Posted by stbloc
You understand diluting the stock is a last resort for most companies. No shareholder benefits from this and usually makes it a non investable investment. It shows how desperate they are by wiping out the market value of the company. The “skin” you speak of just kicks the can further down the road hoping for a miracle vaccine. What scares me the most is Doug lack of transparency about what’s going on. Other carriers CEO’s are very public while mums the word at AA.
“no shareholder benefits from this” they sure do if it returns the company to profitability. I’d think every investor would prefer this to BK.
You’re right that this often isn’t viewed in the best light from an investment standpoint but it’s what’s necessary in this environment.
This would be a different discussion if air travel wasn’t down 75% right now.
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