The difference between United & American
United vs AmericanUnited:United cut its schedule in May by 90%. This month only 3,000 of 25,000 flight attendants are working. Once its CARES Act bailout runs out in September, massive job cuts are expected. Yet over the last month the company’s stock is up 100%. June 8, 2020 American: Silence... |
Originally Posted by nootpilot
(Post 3072894)
United vs AmericanUnited:United cut its schedule in May by 90%. This month only 3,000 of 25,000 flight attendants are working. Once its CARES Act bailout runs out in September, massive job cuts are expected. Yet over the last month the company’s stock is up 100%. June 8, 2020 American: Silence... |
Originally Posted by nootpilot
(Post 3072894)
United vs AmericanUnited:United cut its schedule in May by 90%. This month only 3,000 of 25,000 flight attendants are working. Once its CARES Act bailout runs out in September, massive job cuts are expected. Yet over the last month the company’s stock is up 100%. June 8, 2020 American: Silence... AA is rolling the dice and jumping back out onto routes quicker than any other airline. Up to 55% YOY by July. That’s not silence, it’s action. Believe me, I’m in no way a Doug Parker cheerleader, but he’s doing the best he can right now to save jobs and put AA in a good place, and I do think he’s doing those things well. |
Originally Posted by 3400
(Post 3072958)
Are you really grilling the AA management team for not furloughing enough people?
AA is rolling the dice and jumping back out onto routes quicker than any other airline. Up to 55% YOY by July. That’s not silence, it’s action. Believe me, I’m in no way a Doug Parker cheerleader, but he’s doing the best he can right now to save jobs and put AA in a good place, and I do think he’s doing those things well. Lehman Brother’s CEO Richard S Fuld Jr. was too big to fail but filed for bankruptcy protection under Chapter 11 on September 15, 2008. He received $484 million in salary, bonuses and stock options from 2000-2008. Now: Richard S Fuld Jr. Matrix Private Capital. Matrix Private Capital Group is a diversified asset management firm that provides advisory and alternative investment solutions to high net worth individuals, family offices and institutions. “Whatever it is, enjoy the ride. No regrets.” Eastern Airlines’s CEO Frank Lorenzo was a fierce warrior, after acquiring Continental Airlines in a hostile takeover and saddling it with enormous debt, submerged the company in Chapter 11 bankruptcy to wash it clean of its union contracts. He exited the industry in 1990 with a pocketful of money, walking away with about $30 million in proceeds from the sale, severance pay and salary. Lorenzo got an immediate cash severance payment of about $17.13 million, plus an additional $2.7 million paid over three years and a $10.8 million payment from his stake in Continental, for a total of $30.63 million. Now: Frank Lorenzo Savoy Capital, Inc. Savoy Capital, Inc. is an investment advisory firm. The Company invests in various areas as well as engages in private investment, venture capital, later stage situations and management led buyouts. "I'm not paid to be a candy ass. I'm paid to go and get a job done." -Eastern Airlines & Lehman Brother were too big to fail, but they did.- It doesn’t take a complicated analysis to figure out that the first major U.S. airline to go out of business will likely be the one that carries the most debt, the highest cash burn rate, the lowest margins, and the largest employee and plane-related costs. Taking these factors into consideration will revealed which major U.S. airline has the potential to go out of business. American Airlines’s CEO Doug Parker What is his plan? The powerful will always continue to walk,at the expense of others. “Doug Parker Got It Right!” ~Frank Lorenzo~ February 2013 “Experience is the hardest kind of teacher. It gives you the test first and the lesson afterward.” ~Oscar Wilde~ Time will tell... |
Originally Posted by 3400
(Post 3072958)
Are you really grilling the AA management team for not furloughing enough people?
AA is rolling the dice and jumping back out onto routes quicker than any other airline. Up to 55% YOY by July. That’s not silence, it’s action. Believe me, I’m in no way a Doug Parker cheerleader, but he’s doing the best he can right now to save jobs and put AA in a good place, and I do think he’s doing those things well. Now, if it works, it will be a home run and everyone profits. If it fails, AA will get hit harder than the rest by a long shot I would assume be the demise of DP at AA. |
Your forgetting because AAG has such a huge debt load the only way to pay the debt is to grow revenue, Parker can’t afford to shrink so he must gamble on recovery.
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Originally Posted by Cyio
(Post 3073045)
Now, if it works, it will be a home run and everyone profits. If it fails, AA will get hit harder than the rest by a long shot
For a change, different legacies are doing different things. Hope it works out for all, at least to a manageable degree. LCCs are going to bite off a good share of the market regardless, as they aren't burdened down by the international ops. A year from now the landscape will look different, but I doubt it will be "an asteroid hit, then seismic activity kicked up right before the alien invasion" different. |
Originally Posted by RawHide
(Post 3073110)
Your forgetting because AAG has such a huge debt load the only way to pay the debt is to grow revenue, Parker can’t afford to shrink so he must gamble on recovery.
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There is nothing worth more than routes and market shares. Can you imagine AA giving up parts of DFW to let Delta or United in? That could end AA. Right now all over the country Delta and United are giving routes and markets away for free. And Parker is buying. All we need is to keep the infection rate down or even flat. The current trend is calling this to be over in 75 days. around September. International however is a completely different story.
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