ULCC or American?

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02-07-2020 | 12:07 PM

#11

Aero1900

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From: 1900D CA

I agree that AA isn't going anywhere, but I sure wouldn't guarantee that they won't go thru bankruptcy again and gut the contract again.

02-07-2020 | 05:14 PM

#12

Tranquility

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From: 60’s Tech, Right

Quote:

Originally Posted by Aero1900

I agree that AA isn't going anywhere, but I sure wouldn't guarantee that they won't go thru bankruptcy again and gut the contract again.

They were the least profitable (by pre-tax margin) of any legacy, LCC or ULCC in 2019. So, yeah, any downturn would likely hit AA first.

02-07-2020 | 06:12 PM

#13

Aero1900

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From: 1900D CA

And gas is cheap right now.... AA might quickly find themselves bleeding cash if fuel spikes again. Let's all hope that doesn't happen.

02-07-2020 | 07:30 PM

#14

Dstblj52

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Quote:

Originally Posted by Aero1900

And gas is cheap right now... AA might quickly find themselves bleeding cash if fuel spikes again. Let's all hope that doesn't happen.

AA would do well if fuel spiked they have one of the youngest fleets on the market, something that cuts demand would be far worse for them because they have big lease or finance payments attached to many of those aircraft. While a legacy should probably never have less than 5 billion in debt (it makes them too vulnerable to someone buying the company with a loan against the company IE 1980's NWA).

02-07-2020 | 10:41 PM

#15

Silver02ex

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Based on your post I assume you’re at Spirit. If you have a desire to fly a wide body or at least want the option, then go to AA where you’ll also make more money. If you want a better QOL, as a line holder I think it’s better here. Since you brought up the finance of both companies, I can’t help but think that in 2011, 2 weeks after Spirit ordered 75 Airbus, AA declared bankruptcy.

02-08-2020 | 01:58 AM

#16

Armyguy

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what aa base? makes all the difference. NYC? Then yes, go to AA. What base

02-08-2020 | 07:13 AM

#17

weekendflyer

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From: Seat 0A

I would go to American personally. You’ll have a lot of opportunities to fly different aircraft and routes. They might not be the best airline out there right NOW, but history shows that the best airline now might not still be the best in 10 years (or visa versa).

02-08-2020 | 09:17 AM

#18

mainlineAF

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From: 6th place

American, no question. More money, more opportunity.

02-09-2020 | 10:20 AM

#19

EFBprobs

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Quote:

Originally Posted by Flyby1206

$15bil in post-9/11 bailout is a pretty strong signal they won’t let the big airlines fail.

*laughs in pan am

02-09-2020 | 06:53 PM

#20

Lumberg823

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Go to AA, buy a Tesla, have the autopilot drive you as you catch up on Netflix. Problem solved. In all seriousness go to AA, if you can move to be within rsv rules for AA, I would do that and give yourself the option to be at home on rsv at a legacy or drive 2-2.5 hours to go fly big metal around the world. If you can get to with 2-2.5 hours of an AA domicile, then the NB flying is a wash and AA is the hands down choice. If you can’t move closer I’d still go legacy. Good luck with the decision.