How long will it last?

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10-12-2020 | 05:11 PM

#141

ny797

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Honest question...are we really burning 35 mil/day with all the payroll covered? Obviously it’s not being covered as of October 1. Just curious as to the truth of these numbers that get thrown around

10-12-2020 | 05:18 PM

#142

Varsity

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From: 175 CA

Quote:

Originally Posted by LabDad06

Good luck to everyone, hope you all land somewhere soon or this takes a surprising turn for the better. Anyone know how long CJOs lasted in previous furloughs?

I can't remember for AA specifically, but many airlines filled and flushed pools repeatedly over the last recessions. Some airlines would fill and flush pools without running a single new hire class.

A CJO didn't mean much until you were butt in class.

10-12-2020 | 08:08 PM

#143

Downtime

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Quote:

Originally Posted by ny797

Last I heard it was just south of 30 millions a day. That includes payroll. Our burn rate is not going up because of PSP expiring hence the furloughs to try to lower the labor cost. We will know more when AA reports their financials for Q3.

10-12-2020 | 08:20 PM

#144

ny797

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Quote:

Originally Posted by Downtime

AA got 5.8 billion dollars in PSP funds for 6 months. That works out to 31.8 million per day. I know we had a higher burn rate at the start of the pandemic, but as it stands now and if CARES act is extended, then we are essentially breaking even correct?

10-14-2020 | 10:07 PM

#145

ElCaribe

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Quote:

Originally Posted by bababouey

you’re assumption is predicated on cash burn staying at current rate, $35 mill/day. I’m betting it gets better. We still have things to leverage, assets to sell too, not time to throw in the towel yet.

Assets that who would buy? By assets do you mean airplanes? No ones buying. Selling used or new airplanes in 2020-2021 will be like selling a house in 2008.

10-15-2020 | 03:05 AM

#146

bababouey

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Quote:

Originally Posted by ElCaribe

Assets that who would buy? By assets do you mean airplanes? No ones buying. Selling used or new airplanes in 2020-2021 will be like selling a house in 2008.

The 3 in house regionals.

10-15-2020 | 03:34 AM

#147

Mozam

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Quote:

Originally Posted by bababouey

The 3 in house regionals.

Do you mean sell one and promise the purchaser a certain percent of AA flying. Just what AAL needs ,more codeshare and lost flying from mainline.

10-15-2020 | 04:29 AM

#148

bababouey

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Quote:

Originally Posted by Mozam

Do you mean sell one and promise the purchaser a certain percent of AA flying. Just what AAL needs ,more codeshare and lost flying from mainline.

yeah, it’s been done before. I’m just throwing out ideas for more furniture to burn before we go under. I’m a little worried that there hasn’t been much talk about any mitigation options or anything really. Seems like they put all their eggs in the bailout basket.