Thank you, Slice. Few have pointed out these buisiness decisions. Newer fleet comes with additional purchasing costs. Older fleets come with more maintenance and fuel consumption. Eventually, older fleets have to be replaced.

Two major airlines have different strategies at the moment. (Things can change over time.) Which is better will be played out over the next few years.

No disputing those facts, however, I’ve heard the 88s are paid for by the 9th or 10th of each month and the rest of the month is pure profit. The one department of ours that is consistently forgotten about and underestimated is our TechOps. There’s a reason they were selected by Pratt to overhaul over 5000 engines as a part of our NB Airbus deal in December.

Also, because of our lower debt we have a better credit rating than similar airlines which in turn helps with lower interest rates on new jets. No doubt our debt may increase in the next 5-10 years but it won’t be dramatic, if things stay the course like it seems to be.

I agree, tech ops makes money, replacement for the 88s are on the way and I think we will stay on the 8-10 billion debt. Even if we go up to 15, still half way of UAL and AA.

Our CEO(AA) addressed the debt situation and basically said “ why take $ that is invested at 8% and pay cash for airplanes , when you can leave it alone and finance them for 3%” I suppose we will see if that is a sound biz decision !

How much cash does AA have invested at 8%?

Maybe they’re counting their anticipated returns on their stock buybacks.

AA has been around a loooong time. They ain’t going anywhere. DAL could pay cash for airplanes with all the stock buybacks they have done.

Not to say anything about AA's future, but that line smacks of a lack of knowledge of the history of this industry.

There are plenty of reasons to say a company isn't going anywhere... they've "been around a long time" is not one of them.

As could AA with the $9B buyback program they started in 2014.

UAL has had some of the most inept management in the last 30 years. They are still here. Many airlines have had equally inept management. They are still here. I don’t know how long you you’ve been in the business but in the right now snapshot, AA is probably as good a bet as any. But that’s just my 30+ years in this business. What do I know.