Any "Latest & Greatest" about Delta?
12-04-2011 | 05:29 PM
Gets Weekends Off
Joined: Apr 2008
Posts: 1,462
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And just to be clear, he thinks you're overpaid, just about as much as you think he's overpaid...
Goose...meet gander.
Gander...meet goose.
12-04-2011 | 05:32 PM
Gets Weekends Off
Joined: Jul 2010
Posts: 12,831
Likes: 172
From: window seat
If RA is to belived in or trusted, he needs to be the leader that makes D.A.L. choose its pilots first to do its flying. I'm not against networks either. But in the aggregate, from small former mainline replacement jets to current narrowbody code share to international JV's, the company outsources as much as then can by law and doesn't give us a block hour more.
Thats why zero, zero, 49.75% is insane. Never should have been agreed to, especially for some supposed 2% gain in good times. By the way, the floorless 2 year period is a great time to go into a potential strike if the company can time it right. Give us 49.75% briefly then enjoy a 2 year outsource fest. All in "perfect compliance" with no ability for us to cry struck work if they manage the timing right.
12-04-2011 | 05:36 PM
Gets Weekends Off
Joined: Apr 2008
Posts: 1,619
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Geez man. Certainly you must know by now that I won't fall for you changing the subject and answering questions with more questions. This has nothing to do with the subject you keep ducking. The subject is: Your assertion that American is where they are because of their lack of JV's and code share. That was BS and you know it. If it were true, Southwest would be bankrupt. Show me any published report that states American's trouble are because of a lack of JV's and code share.
For the rest of the audience, alfaromeo will do no such thing. Like he's done so many times before when he's caught spinning and lying, he'll disappear deep into the witness protection program, then come out later when he thinks people have forgotten the last time he got caught.
I know it must sound like vitriol to you. You're not used to being called out trying to con people. But I've got your number, and many others do too. You're an MEC bureaucrat that is part of our problem, not part of our solution. In your world, you just need that full time FPL to continue so you can continue to NOT live under the contract like the rest of us. Why you do what you do is unknown. But to come here and spin the way you do is shameful. No amount of FPL would be worth it to me.
My assertions are easy to find. Try Yahoo finance or any other data provider. But now for YOUR bold assertion (read lies): American is in the trouble its in now because of a lack of JV's and code share? Still waiting for you to EVER back that one up.
Carl
For the rest of the audience, alfaromeo will do no such thing. Like he's done so many times before when he's caught spinning and lying, he'll disappear deep into the witness protection program, then come out later when he thinks people have forgotten the last time he got caught.
I know it must sound like vitriol to you. You're not used to being called out trying to con people. But I've got your number, and many others do too. You're an MEC bureaucrat that is part of our problem, not part of our solution. In your world, you just need that full time FPL to continue so you can continue to NOT live under the contract like the rest of us. Why you do what you do is unknown. But to come here and spin the way you do is shameful. No amount of FPL would be worth it to me.
My assertions are easy to find. Try Yahoo finance or any other data provider. But now for YOUR bold assertion (read lies): American is in the trouble its in now because of a lack of JV's and code share? Still waiting for you to EVER back that one up.
Carl
The first rule of holes is when you are in one, stop digging. You stated unequivocally that DEBT was the problem for American and you stated unequivocally that their bankruptcy was about debt and you stated unequivocally that AMR's debt load was double Delta's. I merely asked for you to provide some proof of these statements. As usual, you just launch personal attacks, bluster about some more, and then launch some more personal attacks.
Let's address the first question, this is what an airline analyst had to say:
- "In 2011 AMR should lose $1.140 billion while Delta should earn $775 million, a pretax difference of $1.9 billion. As the table clearly shows, were AMR to magically have total seat mile costs equal to Delta, it would only close one-third of the profitability gap versus Delta. We have chosen Delta as the comparison standard since LCC is a much shorter hop carrier and the UAL data may be distorted by the ongoing consolidation of data for Continental and United."
- "The bigger issue for American is, by far, its inability to generate unit revenues, or revenues per available seat mile, equal to its competitors. The table below compares AMR unit revenue performance to Delta. Were AMR to generate passenger revenues per seat mile at the level of Delta, the gap between these two carriers would shrink by $910 million or 50 percent more than the gap on the cost side of the equation."
- "Interestingly, the table [click here] shows that, in the early part of the last decade, AMR's RASM [revenue per available seat mile] was at a level above the industry. Over time, however, the industry performance's has surpassed that of AMR. From a revenue perspective, the industry is now more productive than is American."
So in the last few years AMR revenue has dropped below industry performance. Why is that? Almost every analyst will tell you that their total network is much too small. Their own network is too small and their code shares and alliances are too small. They are losing business traffic to Delta and United, mostly Delta. That is why we are outperforming the industry in RASM momentum and AMR is underperforming. That is why AMR has to do something to make their extended network bigger or they need to fragment. They can't operate in no man's land like they are now. They used to be the big dog and now they are the little dog. That dog ain't hunting.
Now you bring out the big guns, Southwest. You say without code shares Southwest should be bankrupt. I have news for you Carl. Southwest's PRASM is light years behind us. They are light years behind us because their extended network and operating model do not attract business travelers. You do know that one round trip ticket in business class on your whale will just about buy out the entire cabin of a Southwest 737, right. They make money because they operate with a lower cost model. They serve about 80 cities total, they use one fleet type, they run an extremely lean staffing model (yes their pilots fly more hours than we do, it's a fact) and they don't care if it takes someone 9 hours to go from Baltimore to Kansas City.
In fact, Southwest has recognized that their cost model is slowly rising and they are now adapting their network to try increase their PRASM performance. They are talking about adding international, adding Hawaii, they are buying bigger aircraft, and they are trying to entice more high fare passengers to book with them. So Southwest management would be the first to tell you that it is absolutely true that their PRASM performance is so far below ours because our extended network, including code shares and alliances, dwarfs theirs. They survive because they have much lower costs also. Get it.
So Carl, please prove to me that AMR's bankruptcy is all about debt. For you to claim that, you should at least have some numbers, they are all available on Edgar. Or are you going to admit that you just made up your analysis and you made up your numbers.
No, I think you will make more personal attacks and then claim I am on FPL (I'm on vacation) and then make more personal attacks.
12-04-2011 | 05:41 PM
Gets Weekends Off
Joined: Apr 2008
Posts: 1,619
Likes: 0
How is this relevant? Your (and many of ALPA's waterboys) are constantly tossing out red herrings in an attempt to avoid answering the question at hand.
Just out of curiosity, do you (or anyone else) get FLP for posting here? YES or NO.
And when will the membership be able to transparently view WHO is getting FPL for WHAT?
And why is this so difficult to deliver?
Just out of curiosity, do you (or anyone else) get FLP for posting here? YES or NO.
And when will the membership be able to transparently view WHO is getting FPL for WHAT?
And why is this so difficult to deliver?
Why do you then try to make some personal attack? Waterboy, really. Is that the best intellectual argument you can make? Don't you have any other ideas other than attack? The answer is no one gets FPL to post on this forum.
Seriously, we aren't in high school anymore, why don't you grow up?
12-04-2011 | 05:52 PM
Gets Weekends Off
Joined: Apr 2011
Posts: 351
Likes: 0
Carl,
The first rule of holes is when you are in one, stop digging. You stated unequivocally that DEBT was the problem for American and you stated unequivocally that their bankruptcy was about debt and you stated unequivocally that AMR's debt load was double Delta's. I merely asked for you to provide some proof of these statements. As usual, you just launch personal attacks, bluster about some more, and then launch some more personal attacks.
Let's address the first question, this is what an airline analyst had to say:
I can't get the tables to post but they just show in a table format the numbers listed above. Everyone in the industry knows that American has a revenue problem. They will only be able to shed a small portion of their debt in Chapter 11, because most of their debt is secured and most of their secured debt is backed by aircraft. You do understand Carl that if AMR rejects EETC's they lose the aircraft right? They don't get to wipe out the debt and keep the jets.
So in the last few years AMR revenue has dropped below industry performance. Why is that? Almost every analyst will tell you that their total network is much too small. Their own network is too small and their code shares and alliances are too small. They are losing business traffic to Delta and United, mostly Delta. That is why we are outperforming the industry in RASM momentum and AMR is underperforming. That is why AMR has to do something to make their extended network bigger or they need to fragment. They can't operate in no man's land like they are now. They used to be the big dog and now they are the little dog. That dog ain't hunting.
Now you bring out the big guns, Southwest. You say without code shares Southwest should be bankrupt. I have news for you Carl. Southwest's PRASM is light years behind us. They are light years behind us because their extended network and operating model do not attract business travelers. You do know that one round trip ticket in business class on your whale will just about buy out the entire cabin of a Southwest 737, right. They make money because they operate with a lower cost model. They serve about 80 cities total, they use one fleet type, they run an extremely lean staffing model (yes their pilots fly more hours than we do, it's a fact) and they don't care if it takes someone 9 hours to go from Baltimore to Kansas City.
In fact, Southwest has recognized that their cost model is slowly rising and they are now adapting their network to try increase their PRASM performance. They are talking about adding international, adding Hawaii, they are buying bigger aircraft, and they are trying to entice more high fare passengers to book with them. So Southwest management would be the first to tell you that it is absolutely true that their PRASM performance is so far below ours because our extended network, including code shares and alliances, dwarfs theirs. They survive because they have much lower costs also. Get it.
So Carl, please prove to me that AMR's bankruptcy is all about debt. For you to claim that, you should at least have some numbers, they are all available on Edgar. Or are you going to admit that you just made up your analysis and you made up your numbers.
No, I think you will make more personal attacks and then claim I am on FPL (I'm on vacation) and then make more personal attacks.
The first rule of holes is when you are in one, stop digging. You stated unequivocally that DEBT was the problem for American and you stated unequivocally that their bankruptcy was about debt and you stated unequivocally that AMR's debt load was double Delta's. I merely asked for you to provide some proof of these statements. As usual, you just launch personal attacks, bluster about some more, and then launch some more personal attacks.
Let's address the first question, this is what an airline analyst had to say:
- "In 2011 AMR should lose $1.140 billion while Delta should earn $775 million, a pretax difference of $1.9 billion. As the table clearly shows, were AMR to magically have total seat mile costs equal to Delta, it would only close one-third of the profitability gap versus Delta. We have chosen Delta as the comparison standard since LCC is a much shorter hop carrier and the UAL data may be distorted by the ongoing consolidation of data for Continental and United."
- "The bigger issue for American is, by far, its inability to generate unit revenues, or revenues per available seat mile, equal to its competitors. The table below compares AMR unit revenue performance to Delta. Were AMR to generate passenger revenues per seat mile at the level of Delta, the gap between these two carriers would shrink by $910 million or 50 percent more than the gap on the cost side of the equation."
- "Interestingly, the table [click here] shows that, in the early part of the last decade, AMR's RASM [revenue per available seat mile] was at a level above the industry. Over time, however, the industry performance's has surpassed that of AMR. From a revenue perspective, the industry is now more productive than is American."
So in the last few years AMR revenue has dropped below industry performance. Why is that? Almost every analyst will tell you that their total network is much too small. Their own network is too small and their code shares and alliances are too small. They are losing business traffic to Delta and United, mostly Delta. That is why we are outperforming the industry in RASM momentum and AMR is underperforming. That is why AMR has to do something to make their extended network bigger or they need to fragment. They can't operate in no man's land like they are now. They used to be the big dog and now they are the little dog. That dog ain't hunting.
Now you bring out the big guns, Southwest. You say without code shares Southwest should be bankrupt. I have news for you Carl. Southwest's PRASM is light years behind us. They are light years behind us because their extended network and operating model do not attract business travelers. You do know that one round trip ticket in business class on your whale will just about buy out the entire cabin of a Southwest 737, right. They make money because they operate with a lower cost model. They serve about 80 cities total, they use one fleet type, they run an extremely lean staffing model (yes their pilots fly more hours than we do, it's a fact) and they don't care if it takes someone 9 hours to go from Baltimore to Kansas City.
In fact, Southwest has recognized that their cost model is slowly rising and they are now adapting their network to try increase their PRASM performance. They are talking about adding international, adding Hawaii, they are buying bigger aircraft, and they are trying to entice more high fare passengers to book with them. So Southwest management would be the first to tell you that it is absolutely true that their PRASM performance is so far below ours because our extended network, including code shares and alliances, dwarfs theirs. They survive because they have much lower costs also. Get it.
So Carl, please prove to me that AMR's bankruptcy is all about debt. For you to claim that, you should at least have some numbers, they are all available on Edgar. Or are you going to admit that you just made up your analysis and you made up your numbers.
No, I think you will make more personal attacks and then claim I am on FPL (I'm on vacation) and then make more personal attacks.
I love a good Carl/Alfa spat!!
It makes me feel like charley sheen in platoon! A child of 2 fathers Sgt. Barnes & Sgt. Elies. Not sure who is Barnes and who is Elies though?
12-04-2011 | 06:02 PM
veut gagner à la loterie
Joined: Apr 2008
Posts: 23,286
Likes: 0
From: Light Chop
I Tebow that this turned out well.
obviously it did, I just wanted to say "I Tebow..."
obviously it did, I just wanted to say "I Tebow..."
12-04-2011 | 06:10 PM
Can't abide NAI
Joined: Jun 2007
Posts: 12,078
Likes: 15
From: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Alpha,
Would you agree that American's bankrutcy is about:
(1) The cost of funding a defined benefit pension plan in a bear market (and that unfunded liability)
(2) Renegotiating aircraft leases
(3) Scope
(4) Debt
AMR surely has their fleet "cross collateralized." You probably understand the term, but for the rest of the sports fans, this means that the paper for every airplane is set up so that is does not correlate on ONE airplane. To prevent reposession, the parts are scattered everywhere ... an airframe here, one engine on that jet, another engine on this other jet, the APU sub leased to JAL, the FMC is over there ... etc. The Courts are still trying to unscrew the mess that ACA created to keep its Dorniers out of the hands of their creditors.
ACL65:
American does not have DIP financing because:
(1) They do not need it ... they have similar cash levels to Delta
(2) DIP is dangerous ... management could lose control of the Company
(3) DIP might not be available in this market. Would you lend AMR money going into 2012? Me either.
Of the various outcomes to American's bankruptcy, fragmentation is the least likely.
More likely is a retrenchment to lines which support better revenue while keeping their network intact. This will involve changes to frequency and gauge of service, better aircraft utilization and more reliance on partners like Alaska, Jet Blue and a new panopoly of regional carriers (TO THE EXTENT THEIR SCOPE IS MODIFIED TO ALLOW THIS). Eagle's scope is already destroyed. ALPA is advising the APA. If history repeats itself, so called "labor leaders" will try to engineer a quick fix to American's economic problems and use outsourcing as a form of credit to try to hold up the standards of mainline compensation.
The APA already rejected the so called B Scale to recover their flying and management published that a failure to reach an agreement on this point would trigger bankruptcy. Well, the APA stood their ground on B Scale. We will if they hold their ground on scope.
Would you agree that American's bankrutcy is about:
(1) The cost of funding a defined benefit pension plan in a bear market (and that unfunded liability)
(2) Renegotiating aircraft leases
(3) Scope
(4) Debt
AMR surely has their fleet "cross collateralized." You probably understand the term, but for the rest of the sports fans, this means that the paper for every airplane is set up so that is does not correlate on ONE airplane. To prevent reposession, the parts are scattered everywhere ... an airframe here, one engine on that jet, another engine on this other jet, the APU sub leased to JAL, the FMC is over there ... etc. The Courts are still trying to unscrew the mess that ACA created to keep its Dorniers out of the hands of their creditors.
ACL65:
American does not have DIP financing because:
(1) They do not need it ... they have similar cash levels to Delta
(2) DIP is dangerous ... management could lose control of the Company
(3) DIP might not be available in this market. Would you lend AMR money going into 2012? Me either.
Of the various outcomes to American's bankruptcy, fragmentation is the least likely.
More likely is a retrenchment to lines which support better revenue while keeping their network intact. This will involve changes to frequency and gauge of service, better aircraft utilization and more reliance on partners like Alaska, Jet Blue and a new panopoly of regional carriers (TO THE EXTENT THEIR SCOPE IS MODIFIED TO ALLOW THIS). Eagle's scope is already destroyed. ALPA is advising the APA. If history repeats itself, so called "labor leaders" will try to engineer a quick fix to American's economic problems and use outsourcing as a form of credit to try to hold up the standards of mainline compensation.
The APA already rejected the so called B Scale to recover their flying and management published that a failure to reach an agreement on this point would trigger bankruptcy. Well, the APA stood their ground on B Scale. We will if they hold their ground on scope.
Last edited by Bucking Bar; 12-04-2011 at 06:21 PM.
12-04-2011 | 06:30 PM
Happy to be here
Joined: Jun 2006
Posts: 18,563
Likes: 0
From: A-320A
That's the push. The RLA applies to labor here not to labor overseas. It means that part of a Transnational (Us) will be under it, and some will not. Just like their labor laws do not apply here. It would be a vertical curve wrt to transnational treaties and agreements.
12-04-2011 | 06:32 PM
veut gagner à la loterie
Joined: Apr 2008
Posts: 23,286
Likes: 0
From: Light Chop
Alpha,
Would you agree that American's bankrutcy is about:
(1) The cost of funding a defined benefit pension plan in a bear market (and that unfunded liability)
(2) Renegotiating aircraft leases
(3) Scope
(4) Debt
AMR surely has their fleet "cross collateralized." You probably understand the term, but for the rest of the sports fans, this means that the paper for every airplane is set up so that is does not correlate on ONE airplane. To prevent reposession, the parts are scattered everywhere ... an airframe here, one engine on that jet, another engine on this other jet, the APU sub leased to JAL, the FMC is over there ... etc. The Courts are still trying to unscrew the mess that ACA created to keep its Dorniers out of the hands of their creditors.
ACL65:
American does not have DIP financing because:
(1) They do not need it ... they have similar cash levels to Delta
(2) DIP is dangerous ... management could lose control of the Company
(3) DIP might not be available in this market. Would you lend AMR money going into 2012? Me either.
Of the various outcomes to American's bankruptcy, fragmentation is the least likely.
More likely is a retrenchment to lines which support better revenue while keeping their network intact. This will involve changes to frequency and gauge of service, better aircraft utilization and more reliance on partners like Alaska, Jet Blue and a new panopoly of regional carriers (TO THE EXTENT THEIR SCOPE IS MODIFIED TO ALLOW THIS). Eagle's scope is already destroyed. ALPA is advising the APA. If history repeats itself, so called "labor leaders" will try to engineer a quick fix to American's economic problems and use outsourcing as a form of credit to try to hold up the standards of mainline compensation.
The APA already rejected the so called B Scale to recover their flying and management published that a failure to reach an agreement on this point would trigger bankruptcy. Well, the APA stood their ground on B Scale. We will if they hold their ground on scope.
Would you agree that American's bankrutcy is about:
(1) The cost of funding a defined benefit pension plan in a bear market (and that unfunded liability)
(2) Renegotiating aircraft leases
(3) Scope
(4) Debt
AMR surely has their fleet "cross collateralized." You probably understand the term, but for the rest of the sports fans, this means that the paper for every airplane is set up so that is does not correlate on ONE airplane. To prevent reposession, the parts are scattered everywhere ... an airframe here, one engine on that jet, another engine on this other jet, the APU sub leased to JAL, the FMC is over there ... etc. The Courts are still trying to unscrew the mess that ACA created to keep its Dorniers out of the hands of their creditors.
ACL65:
American does not have DIP financing because:
(1) They do not need it ... they have similar cash levels to Delta
(2) DIP is dangerous ... management could lose control of the Company
(3) DIP might not be available in this market. Would you lend AMR money going into 2012? Me either.
Of the various outcomes to American's bankruptcy, fragmentation is the least likely.
More likely is a retrenchment to lines which support better revenue while keeping their network intact. This will involve changes to frequency and gauge of service, better aircraft utilization and more reliance on partners like Alaska, Jet Blue and a new panopoly of regional carriers (TO THE EXTENT THEIR SCOPE IS MODIFIED TO ALLOW THIS). Eagle's scope is already destroyed. ALPA is advising the APA. If history repeats itself, so called "labor leaders" will try to engineer a quick fix to American's economic problems and use outsourcing as a form of credit to try to hold up the standards of mainline compensation.
The APA already rejected the so called B Scale to recover their flying and management published that a failure to reach an agreement on this point would trigger bankruptcy. Well, the APA stood their ground on B Scale. We will if they hold their ground on scope.
12-04-2011 | 06:32 PM
Back on TDY
Joined: Apr 2008
Posts: 12,487
Likes: 0
From: 747-400 Captain
Carl,
The first rule of holes is when you are in one, stop digging. You stated unequivocally that DEBT was the problem for American and you stated unequivocally that their bankruptcy was about debt and you stated unequivocally that AMR's debt load was double Delta's. I merely asked for you to provide some proof of these statements. As usual, you just launch personal attacks, bluster about some more, and then launch some more personal attacks.
Let's address the first question, this is what an airline analyst had to say:
I can't get the tables to post but they just show in a table format the numbers listed above. Everyone in the industry knows that American has a revenue problem. They will only be able to shed a small portion of their debt in Chapter 11, because most of their debt is secured and most of their secured debt is backed by aircraft. You do understand Carl that if AMR rejects EETC's they lose the aircraft right? They don't get to wipe out the debt and keep the jets.
So in the last few years AMR revenue has dropped below industry performance. Why is that? Almost every analyst will tell you that their total network is much too small. Their own network is too small and their code shares and alliances are too small. They are losing business traffic to Delta and United, mostly Delta. That is why we are outperforming the industry in RASM momentum and AMR is underperforming. That is why AMR has to do something to make their extended network bigger or they need to fragment. They can't operate in no man's land like they are now. They used to be the big dog and now they are the little dog. That dog ain't hunting.
Now you bring out the big guns, Southwest. You say without code shares Southwest should be bankrupt. I have news for you Carl. Southwest's PRASM is light years behind us. They are light years behind us because their extended network and operating model do not attract business travelers. You do know that one round trip ticket in business class on your whale will just about buy out the entire cabin of a Southwest 737, right. They make money because they operate with a lower cost model. They serve about 80 cities total, they use one fleet type, they run an extremely lean staffing model (yes their pilots fly more hours than we do, it's a fact) and they don't care if it takes someone 9 hours to go from Baltimore to Kansas City.
In fact, Southwest has recognized that their cost model is slowly rising and they are now adapting their network to try increase their PRASM performance. They are talking about adding international, adding Hawaii, they are buying bigger aircraft, and they are trying to entice more high fare passengers to book with them. So Southwest management would be the first to tell you that it is absolutely true that their PRASM performance is so far below ours because our extended network, including code shares and alliances, dwarfs theirs. They survive because they have much lower costs also. Get it.
So Carl, please prove to me that AMR's bankruptcy is all about debt. For you to claim that, you should at least have some numbers, they are all available on Edgar. Or are you going to admit that you just made up your analysis and you made up your numbers.
No, I think you will make more personal attacks and then claim I am on FPL (I'm on vacation) and then make more personal attacks.
The first rule of holes is when you are in one, stop digging. You stated unequivocally that DEBT was the problem for American and you stated unequivocally that their bankruptcy was about debt and you stated unequivocally that AMR's debt load was double Delta's. I merely asked for you to provide some proof of these statements. As usual, you just launch personal attacks, bluster about some more, and then launch some more personal attacks.
Let's address the first question, this is what an airline analyst had to say:
- "In 2011 AMR should lose $1.140 billion while Delta should earn $775 million, a pretax difference of $1.9 billion. As the table clearly shows, were AMR to magically have total seat mile costs equal to Delta, it would only close one-third of the profitability gap versus Delta. We have chosen Delta as the comparison standard since LCC is a much shorter hop carrier and the UAL data may be distorted by the ongoing consolidation of data for Continental and United."
- "The bigger issue for American is, by far, its inability to generate unit revenues, or revenues per available seat mile, equal to its competitors. The table below compares AMR unit revenue performance to Delta. Were AMR to generate passenger revenues per seat mile at the level of Delta, the gap between these two carriers would shrink by $910 million or 50 percent more than the gap on the cost side of the equation."
- "Interestingly, the table [click here] shows that, in the early part of the last decade, AMR's RASM [revenue per available seat mile] was at a level above the industry. Over time, however, the industry performance's has surpassed that of AMR. From a revenue perspective, the industry is now more productive than is American."
I can't get the tables to post but they just show in a table format the numbers listed above. Everyone in the industry knows that American has a revenue problem. They will only be able to shed a small portion of their debt in Chapter 11, because most of their debt is secured and most of their secured debt is backed by aircraft. You do understand Carl that if AMR rejects EETC's they lose the aircraft right? They don't get to wipe out the debt and keep the jets.
So in the last few years AMR revenue has dropped below industry performance. Why is that? Almost every analyst will tell you that their total network is much too small. Their own network is too small and their code shares and alliances are too small. They are losing business traffic to Delta and United, mostly Delta. That is why we are outperforming the industry in RASM momentum and AMR is underperforming. That is why AMR has to do something to make their extended network bigger or they need to fragment. They can't operate in no man's land like they are now. They used to be the big dog and now they are the little dog. That dog ain't hunting.
Now you bring out the big guns, Southwest. You say without code shares Southwest should be bankrupt. I have news for you Carl. Southwest's PRASM is light years behind us. They are light years behind us because their extended network and operating model do not attract business travelers. You do know that one round trip ticket in business class on your whale will just about buy out the entire cabin of a Southwest 737, right. They make money because they operate with a lower cost model. They serve about 80 cities total, they use one fleet type, they run an extremely lean staffing model (yes their pilots fly more hours than we do, it's a fact) and they don't care if it takes someone 9 hours to go from Baltimore to Kansas City.
In fact, Southwest has recognized that their cost model is slowly rising and they are now adapting their network to try increase their PRASM performance. They are talking about adding international, adding Hawaii, they are buying bigger aircraft, and they are trying to entice more high fare passengers to book with them. So Southwest management would be the first to tell you that it is absolutely true that their PRASM performance is so far below ours because our extended network, including code shares and alliances, dwarfs theirs. They survive because they have much lower costs also. Get it.
So Carl, please prove to me that AMR's bankruptcy is all about debt. For you to claim that, you should at least have some numbers, they are all available on Edgar. Or are you going to admit that you just made up your analysis and you made up your numbers.
No, I think you will make more personal attacks and then claim I am on FPL (I'm on vacation) and then make more personal attacks.
"American Airlines, Can't Overcome Debt, Files For Bankruptcy' - Time Newsfeed
"DALLAS — The parent company of American Airlines filed for bankruptcy protection Tuesday, seeking relief from crushing debt caused by high fuel prices and expensive labor contracts that its competitors shed years ago.....Horton said the board of directors unanimously decided on Monday night to file for bankruptcy. In a filing with federal bankruptcy court in New York on Tuesday, AMR said it had $29.6 billion in debt and $24.7 billion in assets...." - News-journal.com
"FORT WORTH, Texas (AP) — American Airlines and its parent company are filing for Chapter 11 bankruptcy protection as they seek to cut costs and unload massive debt built up by years of high jet fuel prices and labor struggles." - Associated Press
"AMR was also facing some large debt payments. The company had $1.8 billion due by the end of 2012. The net debt at the end of the third quarter was $16.9 billion. And when $7.9 billion in underfunded pension benefits and $2.5 billion in other long-term liabilities are added, the company has close to $30 billion in debt and other long-term obligations." Star-Telegram
"The parent company of American Airlines filed for bankruptcy protection yesterday, seeking relief from crushing debt caused by high fuel prices and expensive labour contracts.." The Independent
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Try as I might to find it alfaromeo, I couldn't find a SINGLE news story to back up your claim that American Airlines is where it is because of a lack of Joint Ventures and/or code share agreements.
You're embarrassing yourself. But I urge you to continue. After all, since I'm paying your flight pay loss, I want to feel I'm getting my money's worth.
Carl
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