View Poll Results: Will AA declare bankruptcy?
Yes
219
70.65%
No
91
29.35%
Voters: 310. You may not vote on this poll
Bankruptcy
01-27-2021 | 11:34 AM
#214
Gets Weekends Off
Joined: Nov 2020
Posts: 2,941
Likes: 212
From: Enoch Powell Enthusiast
Ask yourself:
"What was more damaging/expensive to the local, state, national, and global economy? 9/11 or a multi-year pandemic?"
All the majors went under after 9/11 (except LUV).
I'm not optimistic for any of the majors to avoid a Ch 11 filing at the very least. One goes down, the rest will go like dominoes.
Or not. "It's different this time". Because we really, really want it to be. Yeah, that should do it.
"What was more damaging/expensive to the local, state, national, and global economy? 9/11 or a multi-year pandemic?"
All the majors went under after 9/11 (except LUV).
I'm not optimistic for any of the majors to avoid a Ch 11 filing at the very least. One goes down, the rest will go like dominoes.
Or not. "It's different this time". Because we really, really want it to be. Yeah, that should do it.
01-27-2021 | 12:10 PM
#215
On Reserve
Joined: May 2018
Posts: 111
Likes: 0
According to a friend in upper management, maintenance side, AA would be chapter 11 by now, if not for latest public bailout . He says the possibility of bankruptcy proceedings still very high regardless. Not just AA but some of the others as well.
01-27-2021 | 12:19 PM
#216
Eating A Gruben
Joined: Feb 2020
Posts: 1,065
Likes: 0
I’m not so sure I believe that AA is thinking about chapter 11 right now with liquidity at 15 billion. Planning for the future is believable.
Most importantly, this bailout doesn’t help the airlines in any way as far as I’m aware..... the cash is only used to refund the cost of payroll. In other words, I believe the airline would save just as much money by just leaving everyone on the streets so the bailout wouldn’t effect bankruptcy in the slightest. Am I wrong?
Also to be fair, this is an economic downturn unlike anything this industry has seen. If the virus were to disappear tomorrow, things would get rolling pretty much instantaneously. That can’t be said of past downturns, where airlines business models were fundamentally flawed. I’m not calling for optimism as much as I’m playing devils advocate
Most importantly, this bailout doesn’t help the airlines in any way as far as I’m aware..... the cash is only used to refund the cost of payroll. In other words, I believe the airline would save just as much money by just leaving everyone on the streets so the bailout wouldn’t effect bankruptcy in the slightest. Am I wrong?
Also to be fair, this is an economic downturn unlike anything this industry has seen. If the virus were to disappear tomorrow, things would get rolling pretty much instantaneously. That can’t be said of past downturns, where airlines business models were fundamentally flawed. I’m not calling for optimism as much as I’m playing devils advocate
01-27-2021 | 12:48 PM
#217
Line Holder
Joined: Feb 2007
Posts: 595
Likes: 2
Most importantly, this bailout doesn’t help the airlines in any way as far as I’m aware..... the cash is only used to refund the cost of payroll. In other words, I believe the airline would save just as much money by just leaving everyone on the streets so the bailout wouldn’t effect bankruptcy in the slightest. Am I wrong?
It results in an annual "salary" of over $1 million per job saved. It was a corporate bailout disguised as payroll support and thankfully you and the general public bought it.
01-27-2021 | 01:09 PM
#218
Eating A Gruben
Joined: Feb 2020
Posts: 1,065
Likes: 0
Take the amount that AA received from the government. Divide it by the amount of recalled furloughs and then multiply that by 4 because the second bill only stipulated a quarter of a year of employment (3-mo duration).
It results in an annual "salary" of over $1 million per job saved. It was a corporate bailout disguised as payroll support and thankfully you and the general public bought it.
It results in an annual "salary" of over $1 million per job saved. It was a corporate bailout disguised as payroll support and thankfully you and the general public bought it.
01-27-2021 | 01:44 PM
#219
Banned
Joined: Jan 2021
Posts: 1,164
Likes: 2
I’m not so sure I believe that AA is thinking about chapter 11 right now with liquidity at 15 billion. Planning for the future is believable.
Most importantly, this bailout doesn’t help the airlines in any way as far as I’m aware..... the cash is only used to refund the cost of payroll. In other words, I believe the airline would save just as much money by just leaving everyone on the streets so the bailout wouldn’t effect bankruptcy in the slightest. Am I wrong?
Also to be fair, this is an economic downturn unlike anything this industry has seen. If the virus were to disappear tomorrow, things would get rolling pretty much instantaneously. That can’t be said of past downturns, where airlines business models were fundamentally flawed. I’m not calling for optimism as much as I’m playing devils advocate
Most importantly, this bailout doesn’t help the airlines in any way as far as I’m aware..... the cash is only used to refund the cost of payroll. In other words, I believe the airline would save just as much money by just leaving everyone on the streets so the bailout wouldn’t effect bankruptcy in the slightest. Am I wrong?
Also to be fair, this is an economic downturn unlike anything this industry has seen. If the virus were to disappear tomorrow, things would get rolling pretty much instantaneously. That can’t be said of past downturns, where airlines business models were fundamentally flawed. I’m not calling for optimism as much as I’m playing devils advocate
01-27-2021 | 02:58 PM
#220
Line Holder
Joined: Feb 2007
Posts: 595
Likes: 2
Thankfully the mainstream media hasn't called this out, the bailout has better optics if people think it's for recalls only.
This blogger has some of the numbers and then in the second article details how the airline is keeping even more of the money for itself.
https://onemileatatime.com/airlines-recall-furloughed-workers/
https://viewfromthewing.com/how-american-airlines-is-keeping-government-payroll-support-for-itself-not-giving-it-to-employees/
This blogger has some of the numbers and then in the second article details how the airline is keeping even more of the money for itself.
https://onemileatatime.com/airlines-recall-furloughed-workers/
https://viewfromthewing.com/how-american-airlines-is-keeping-government-payroll-support-for-itself-not-giving-it-to-employees/
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