How long will it last?
10-18-2020 | 02:42 PM
#193
Perennial Reserve
Joined: Jan 2018
Posts: 14,253
Likes: 257
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.
10-18-2020 | 02:44 PM
#194
Line Holder
Joined: Mar 2014
Posts: 898
Likes: 47
10-18-2020 | 03:31 PM
#196
Gets Weekends Off
Joined: Feb 2012
Posts: 4,601
Likes: 0
From: CRJ FO
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.
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.
10-18-2020 | 03:35 PM
#198
Line Holder
Joined: Oct 2019
Posts: 1,184
Likes: 34
No one is wishing for AA to fail. Least of all those of us who work for AAG. I just think it’s foolish to think this is all somehow too big or too important to go away. There is precedence and it can absolutely happen. Not much we can do about it however.
You also have to remember... For as hard as Doug and AA will be lobbying the federal government and likely several of the states, the leadership at competing airlines will be lobbying against an AA bailout too.
You also have to remember... For as hard as Doug and AA will be lobbying the federal government and likely several of the states, the leadership at competing airlines will be lobbying against an AA bailout too.
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.
10-18-2020 | 03:43 PM
#199
You scratched my anchor
Joined: Feb 2011
Posts: 5,126
Likes: 85
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.
10-18-2020 | 03:43 PM
#200
Line Holder
Joined: Aug 2015
Posts: 1,000
Likes: 73
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.
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.
Thread
Thread Starter
Forum
Replies
Last Post
TonyWilliams
Hiring News
2
10-24-2008 05:55 AM
