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Originally Posted by acl65pilot
(Post 1096713)
The FWST and AP are not people I would use to judge what AMR's issues are. PRASM is the metric that is the best indicator and AMR has had a declining trend line.
Look folks, let me try to make this simple since we have so many people here trying desperately to "prove" their thesis. Nobody goes into bankruptcy because they have a revenue problem. NOBODY. There is no mechanism in bankruptcy court to fix a revenue problem. The ONLY reason bankruptcy court exists is to give you a certain time frame of protection FROM YOUR CREDITORS! By definition, what is a creditor? Answer, somebody that holds your DEBT obligation. Let's take this a step further. You run a company that has zero debt but doesn't produce the revenue that your competitors do. What would a bankruptcy judge say to you upon entering court? He would say: Since you have no debt, there's nothing we can do for you. Maybe you should go to business school to learn how to produce revenue better. I don't know how I can make this any simpler. I know this doesn't fit the template created here by alfaromeo and acl65pilot, but the facts are that AMR is in bankruptcy court. They are seeking protection from the creditors to which they have $29.6 billion in debt obligations. They are NOT seeking lessons on how to produce more revenue. Carl |
Originally Posted by alfaromeo
(Post 1096722)
Carl claims that AMR's lack of profitability is debt related. Carl said AMR's debt was double Delta's.
In the 3Q, AMR spent $171 million in interest expense on about $8.2 billion in debt. Delta spent $229 million in interest on about $12.5 billion in debt. American reported a net LOSS of $153 million and Delta reported a net PROFIT of $547 million, after all special items. Do the math, if a magic fairy comes along and wipes out all of American's debt and let's them keep all their airplanes, American still has a third quarter where their profit is $18 million. $18 million profit in the third quarter, you know the money quarter, summer travel, the one that is supposed to support you the whole year. $18 million if they eliminate ALL THEIR DEBT. Sure they don't have a revenue problem, it's all about debt.
Originally Posted by alfaromeo
(Post 1096722)
With ZERO DEBT American would still lose money for the entire year, they would still lose money for next year, and the one after that. Is this really all about debt?
Originally Posted by alfaromeo
(Post 1096722)
If debt is the problem, how come Delta spent more on interest and still reported a healthy 3Q while American sucked it once again?
Originally Posted by alfaromeo
(Post 1096722)
In the third quarter Delta increased PRASM by 11% while American increased PRASM by 5.8%, but you know that has nothing to do with profitability, it's all about debt. It is completely unrelated to profit that Delta was able to raise fares to cover the run up in fuel prices while American lagged behind once again, revenue doesn't matter, it's all about debt.
So Delta has more debt, Delta pays more in interest every quarter than American. Delta also has been leading the industry in PRASM growth while American is the laggard. Delta makes a PROFIT in the third quarter while American has another LOSS. Delta will be solidly profitable this year and next while American is in bankruptcy. Yes, Carl, proved it, it's all about debt. Revenue doesn't matter, it's all about debt. Hey, if some guy sitting on the desk at AP says it's so, it must be true. Since we all know your true identity too, you are not an unbiased observer. But hey, let's not look at real numbers, they are just a deflection of the truth. Still noting for the record that you've come up with NOTHING to back up your original claim that AMR is where they are because of a lack of JV's and code share. Carl |
Geeze,
My eyes glassed over about a dozen pages ago. Guys who don't like each other having a "chicken or the egg" discussion. What does ANY of this have to do with us? If AA breaks apart do any of you honestly think we will take any part of them. We are paying down debt, unless it's a free dead fish on the door step I just don't see it. So, WHATGAS? Ferd |
Originally Posted by alfaromeo
(Post 1096737)
Translation. Bankruptcy has nothing to do with fixing their revenue problems.
Originally Posted by alfaromeo
(Post 1096737)
Bankruptcy will fix the issues I listed which will give American some short term breathing room.
So here we have you saying backruptcy has nothing to do with fixing their revenue problems, but bankruptcy will fix the issues you listed (revenue problems). You contradict yourself in the same post. Carl |
Originally Posted by acl65pilot
(Post 1096673)
If you have an issue correct, but fluttering your wings about language that is part of six and eight party talks will do little to no good. We are just one of those parties, and cannot just demand it be changed to DAL.
. I guess we better take the company's first offer since we are obviously just along for the ride |
Originally Posted by Ferd149
(Post 1096745)
Geeze,
My eyes glassed over about a dozen pages ago. Guys who don't like each other having a "chicken or the egg" discussion. What does ANY of this have to do with us? If AA breaks apart do any of you honestly think we will take any part of them. We are paying down debt, unless it's a free dead fish on the door step I just don't see it. So, WHATGAS? Ferd |
I like chocolate.
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Originally Posted by Jughead
(Post 1096758)
I like chocolate.
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I 'flutter my wings' when I eat chocolate :D:D:D
Cheers George |
Someone post some Underboob.........Puhlease! :D:eek:
All these numbers and logical debate points are totally ruining this thread for me! Oh, and when is the projected training/conversion list coming out? I want to know when I have to start commuting. |
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