If the industry is still bouncing around 40% come summer of 2021, we’re not going to be the only ones in trouble.

There are many things about the current market that don’t make much sense.

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https://i.ibb.co/qM218ZC/EF6-DB466-0...4-B77-F2-D.jpg

That is a very valid question. What WOULD anyone pay $12.46 a share for something that is most recently losing $8.19 a share annually? Nor would I bet on any dividends any time very soon.

But I’d think reorganizing under Chapter 11 is more likely than liquidation.

Yep, how many airlines around the world are equipped to handle 2 summers of non existent long haul travel?

Yeah, I could never see that happening. https://uploads.tapatalk-cdn.com/202...c73c7baae8.jpg

Maybe the initial bailouts. But other airlines stand to gain from AA’s loss. And think about it this way too... If AA gets a special government bailout in bankruptcy to avoid liquidation, then it will give them a giant operating advantage over Delta, United, and Southwest. So then it would pressure them to do the same.

They won’t want to go to bankruptcy if they have cash to continue waiting it out for a more full recovery. If they go to bankruptcy in some ways, they lose the ability to steer their companies among a sleuth of other things. They will very likely lobby hard against an AA bailout for this reason alone.

I’m pretty sure he meant, teaming up for the sole purpose of saving AA.

Dude, I think they get it. Everyone has heard your doomsday opinions ad nauseam. I think you’d be better suited to worrying about PSA’a future at this point.

American Airlines will be fine. They ain’t going anywhere. Worst case, they come out of this a smaller airline and will have to tighten up with some tough years ahead.

AA’s debt isn’t due (in large part) until starting in 2023. I hope we are out of the woods by then. If you think the optics of America’s largest airline liquidating are acceptable you know better than me. If you think anything other than a return to profitability is in other airlines best interests you may need to rethink things. I personally think AA will take a trip through BK. That will drag at least two, if not three or four through the car wash. We will all get through this. How painful it is, is yet to be known. If AA goes through BK it’s going to be painful for all. If AA liquidates it will throw sand under the foundation of all the airlines.

Vincent: Everyone is your brother until the rent comes due. - Ronin (1998)

Those other airline CEOs suddenly won't be around if there is blood in the water. I'm convinced that CEOs like Gary Kelly are just supporting PSP as part of a greater strategy to gain concessions from union labor and ensure they get an equal share of the pie.

This only works if all airlines are in about the same amount of trouble. American's financial situation is more dire than the other 2 legacies, while over at Southwest Wall Street is still lending Gary money at 4%. American is in the unenviable position of having to make the hard decisions first.