How long will it last?
10-18-2020 | 03:43 PM
#201
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Joined: Feb 2012
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From: CRJ FO
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.
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.
And I do hope you’re right.
10-18-2020 | 03:50 PM
#202
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Joined: Feb 2012
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From: CRJ FO
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 | 04:44 PM
#203
You scratched my anchor
Joined: Feb 2011
Posts: 5,126
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“American expects to end the third quarter with more than $13 billion in total liquidity, which Fitch considers to be sufficient to avoid near-term distress. Liquidity is also well above Fitch's expectations from its prior forecast as American has raised significant new capital over the past several months. Liquidity is also bolstered by American's recently secured $5.5 billion loan under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which could expand up to $7.5 billion. A potential extension of the Payroll Support Program would also be positive for liquidity but is uncertain at this time.”
10-18-2020 | 07:06 PM
#205
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Joined: Jul 2016
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From: FO
How long will it last?
It’s hilarious when guys here are supporting & hoping for the Government to help prevent the “probability” of the largest airline liquidating through “State” funding as a result of corporate greed and stock buybacks.
I rather see the rules of capitalism upheld over my personal gain. #Integrity. I know generations beyond mine will be negatively impacted by any Gov’t bailout of any airline or industry.
Yes, we love capitalism and hate socialism, except when our tail is on the line right? That’s the irony I see so much of here on APC amongst the majority of high-ass pilots.
I’m ready for 2020 to be over. I think 2021 will be much better. Hope everyone stays motivated. I know I am, I have no choice.
I rather see the rules of capitalism upheld over my personal gain. #Integrity. I know generations beyond mine will be negatively impacted by any Gov’t bailout of any airline or industry.
Yes, we love capitalism and hate socialism, except when our tail is on the line right? That’s the irony I see so much of here on APC amongst the majority of high-ass pilots.
I’m ready for 2020 to be over. I think 2021 will be much better. Hope everyone stays motivated. I know I am, I have no choice.
Last edited by SilentLurker; 10-18-2020 at 07:32 PM.
10-18-2020 | 07:39 PM
#206
Gets Weekends Off
Joined: May 2017
Posts: 1,285
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From: 175 CA
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.
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.
Creditors will have to individually agree to let a new "AA" continue to use all those assets under new terms. The creditors also have the option to liquidate them on the open market or to sell them to another airline.
That's gates, slots (especially overseas slots at HND and LHR), aircraft, ground equipment.. It would be hard to run an airline without any one of these pieces continuing. Large portions of the airline could be sold off to competitors in a chapter 11 scenario, weakening any reorganization attempt.
10-18-2020 | 08:48 PM
#207
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Do you realize the stock becomes worthless in chapter 11?
10-19-2020 | 04:52 AM
#209
Banned
Joined: May 2017
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I’m not wishing AA fails.
I’m suggesting Congress won’t care.
One airline failing would clearly help the rest of the industry. (And a quick Chapter 7 for AA might avoid a raft of Chapter 11’s as revenue immediately redistributes)
I’m suggesting Congress won’t care.
One airline failing would clearly help the rest of the industry. (And a quick Chapter 7 for AA might avoid a raft of Chapter 11’s as revenue immediately redistributes)
10-19-2020 | 05:01 AM
#210
Line Holder
Joined: Sep 2020
Posts: 32
Likes: 0
They may leave a little value in existing shares since golden parachutes have been limited. Senior management will get theirs one way or another. The original airline BK template was radically altered when AA filed (the first time). The news of this shock will soon fade and people will move on just like they always have. I don't see it nearly as bad as the lost decade unless ATP requirements are rolled back.
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