It is leveraged but not fully leveraged, some firms estimate the AAdvantage program is worth up to $30 billion. AA could pre sale more miles to Citi and Barclays at a discount to raise more capital.

 

That's not how it works. The miles they sell go to liabilities as "Loyalty program liability" (which end of 2021 was just under 3 billion). It is a way to raise cash but it's not capital, it is a liability.

 

The cash they receive goes down as an asset as well but my point was the program is not fully leveraged. AA does not need to raise cash right now anyway, if anything they have too much but they’re being cautious.

 

So are we bankrupt yet? Asking for a friend

 

If AAG goes through Chapter 11, an average pilot probably won't even notice it.

 

And since our little conversation, AA has exercised options for an additional 23 MAXs with the intention of bringing that up to 30.

 

23 more in the future? Wow! That’s almost as many as NK will tAke 320 NEOs This year. Of course if you consider F9s contribution since they seem to be going to merge, it’ll be a lot more than that.

But again, what PERCENTAGE of the fleet will actually be more efficient after that happens? How many of the less efficient aircraft are being retired?

 

Youre conveniently ignoring that AA is also taking neos, and 787s that are delayed only due to Boeings issues. Oh and of course more maxs, and they just added 30 to the list. Keep telling yourself that AA doesn’t or won’t have a fuel efficient fleet.

 

You are conveniently avoiding answering the question or dealing with the real issue, which was fleet efficiency. The posting touted narrowbody fleet efficiency, and while I will concede you aren’t in any way responsible for Boeings 737 and 787 problems, that is currently a side issue.

Right now F9 has over 70% NEOs:

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Spirit had these numbers as of Sep 2021 and has added NEOs since and will add 24 more this year.





As NK retires 319s and adds 320/321 NEOs their percentage of newer and more fuel efficient aircraft will continue to rise.


The original assertion was that AA had a newer and more fuel efficient NB fleet than anybody else. That statement is demonstrably not true. I NEVER MADE the straw man argument that AA “doesn’t or won’t have a fuel efficient fleet,” merely that their were others with newer and more fuel efficient fleets. AA holds no real advantage over others in this regard.

 

When did this become a comparison between AA and F9/NK? Go back and read your post #836. In that post you proclaim that AA doesn’t/won’t have a fuel efficient fleet. Even the fleet count numbers you used in that original post were already wrong and outdated. Since then (only Jan 24th) AA ordered 30 more fuel efficient airplanes. Bringing the total 737 MAX and NEOS expected to be on property to 230. And I don’t know about whatever airline you work for, but here we also have another little fuel efficient airplane called the 787. Now you’re suddenly pivoting to comparing our neo vs non-neo percentages to that of NK and F9? What’s that got to do with anything? I’m done with this silly little conversation. You’re just some troll who likes to mix it up, and I’ve clearly allowed myself to fall for it.