AA contract vs new Delta contract

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03-14-2023, 01:19 AM

#11

AllYourBaseAreB

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Joined APC: Dec 2019

Posts: 1,899

Quote:

Originally Posted by Unablesorry

I’m still considering AA, but yeah the main reason why is taking so long to decide is the company being in big financial trouble. And what concerns me the most is your CEO openly stating his plan is to reduce 15B in debt by 2025 and raising operating costs by 7+B at the same time. But I’m sorry, I didn’t mean to offend anyone. AA is a dream airline for a lot of guys like me but unfortunately seems like nobody at the wheel.

It’s not a zero sum situation my man… Also, IF we get a contract this year, that $7B is spread out from now till 2027. Also, that $7B number does not include the benefits to the company from changed work rules. Also, they have already paid off more than half of the $15B. Also, we have record unit revenue. Also, they aren’t blowing billions a year on stock buybacks right now.

03-14-2023, 05:45 AM

#12

b73nav8r

Line Holder

Joined APC: Dec 2008

Position: Capt

Posts: 56

Delta TA Executive Summary

Here is the executive summary of the TA that they gave us just before we voted on it.

Attached Files

C2019-TA-Executive-Summary.pdf (168.5 KB, 151 views)

03-14-2023, 07:36 AM

#13

J3nkums

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Joined APC: Mar 2022

Posts: 243

Quote:

Originally Posted by Unablesorry

AA is on the verge of bankruptcy, they could give you the moon in the next contract and it would mean absolutely nothing . Actually the closer they get to match DL rates the more scared I would be if worked for AA.

Ok. Go back to watching You Tube videos. The is a forum for real pilots.

03-14-2023, 07:37 AM

#14

J3nkums

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Quote:

Originally Posted by Al Czervik

I love you.
XOXO
-excargodog

Hahaha this made me laugh.

03-14-2023, 07:39 AM

#15

J3nkums

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Posts: 243

Quote:

Originally Posted by dracir1

So...

I'm not an AA guy (no dog in this fight).

But, outside of their debt, why exactly is AA in trouble? Can you be specific. Not throwing shade at all - just wondering the depths of your thoughts wrt corporate finance, etc.

They are not. Thia guy has zero clue what he is talking about. AA is actually paying down the debt better than expected and we've completed our fleet renewal.

03-14-2023, 08:53 AM

#16

TransWorld

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Joined APC: Aug 2016

Position: Fully Retired

Posts: 7,000

Quote:

Originally Posted by J3nkums

They are not. Thia guy has zero clue what he is talking about. AA is actually paying down the debt better than expected and we've completed our fleet renewal.

This is correct. AA has heavy debt but mostly a renewed fleet. They are in a position to make major pay down of their debt.

UA and Delta still have to go through major fleet renewals that will cost billions.

03-14-2023, 10:17 AM

#17

Unablesorry

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Joined APC: Jul 2022

Posts: 20

Quote:

Originally Posted by AllYourBaseAreB

Totally agree , improving scheduling practices and work life balance does improve reliability thus has a positive effect on unit cost and most importantly Safety. That should be the main focus. Taking advantage of a record revenue stage to clean balance sheet should be second. Wages can wait. If they play their cards right AA could be leading legacy financially in a few years with an updated fleet. I’m just saying doing it all at once is risky specially when you run out of refinancing tools and seems like they are choosing to sacrifice growth. But I get it, senior pilots want their checks now before retirement and I don’t blame them I would probably want the same.

Last edited by Unablesorry; 03-14-2023 at 10:34 AM.