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Quote:

Originally Posted by Myfingershurt (Post 3410774)

Man I’ve been working on this with every captain I’ve flown with at delta since 2015. Even the civilian guys. The air craft is “the jet” and the f/o is “the co-pilot.” It’s like I’m in a bad 1970s movie about airlines.

Co-pilot!! I forgot that one. Add that to the list of what you’ll have at AA.

Quote:

Originally Posted by at6d (Post 3410815)

Does AA still have Super things? Super 80, Super-ATR etc. Super Saver? Super Sabre? I don’t know, I’m tired. RF 100 JOKE

We have “super red” trips that are un-tradable/un-droppable.

Quote:

Originally Posted by Al Czervik (Post 3410489)

Copied from elsewhere (AA)

On Debt: it is significant that the company has paid off approx 4.1B in debt since the high water mark of July 2021. They are right on track to pay off their planned in 15+B debt by 2025 even by conservative estimates on free cash flow and capex. Considering the difficulty of the environment over the last year, they have done the hardest work first.

What about the remaining $30 Billion?

Quote:

Originally Posted by Margaritaville (Post 3410889)

What about the remaining $30 Billion?

What about it? Do you really expect a Fortune 500 company, especially an airline, to have zero debt?

Quote:

Originally Posted by Dunkin (Post 3410896)

What about it? Do you really expect a Fortune 500 company, especially an airline, to have zero debt?

Are you serious? Look at the debt of Delta and United vs American. What a dumb retort.

American is like opening new credit cards to pay off the old maxed out ones then bragging how much debt you paid off.

It's like being half a million dollars in debt and making $100K a year.

Quote:

Originally Posted by Margaritaville (Post 3410897)

Honestly as sad as it is, they are just to big to fail. Government would bail them out again. Now how that effects moral and contract stuff is certainly debatable but I don’t think you would ever have to worry about your job by going to AA.

Quote:

Originally Posted by Cyio (Post 3410905)

Never say never. After Coca-Cola, this was once the most widely recognized trademark in the world:

https://i.ibb.co/GRjxk9D/4575-C6-A5-...-F4-AE3416.png

Quote:

Originally Posted by Cyio (Post 3410905)

Too big to fail. Not too big to get broken up and emerge much smaller. At this point, it's almost inevitable. American Airlines is actually proving that there is such a thing as too big. Size doesn't matter if it's not managed properly (that's what she said).

Quote:

Originally Posted by Excargodog (Post 3410911)

Never say never. After Coca-Cola, this was once the most widely recognized trademark in the world:

Noble effort, but at its peak Pan Am had about 2500 pilots.

They might be too big for chap. 7 but I’ll guarantee they’re not too big for chap. 11

Quote:

Originally Posted by Texasbound (Post 3410485)

What, no one is going to talk about debt? Not that they know anything about how corporate debt is structured, but hey, it sounds cool.

The bond rating companies talk about debt all the time. All you have to do is look at them:

https://i.ibb.co/RHVDLpr/BE03-A34-A-...DD4-E335-B.jpg

Quote:

KEY RATING DRIVERS

Substantial Debt Burden: The company ended 2021 with a total debt balance (including lease obligations) of $46 billion, up nearly 40% from YE 2019 and equal to roughly 5.6x 2019 levels of EBITDAR. Fitch expects American to pare down cash on hand to de-lever its balance sheet over time. Nevertheless, Fitch expects leverage to remain at levels that constrain the rating at the current level into 2023.

American maintains a public target of reducing total debt by $15 billion by YE 2025. Fitch considers this goal to be ambitious as it would require a stronger top-line recovery than what is included in its base case. The company reduced liabilities by $3.7 billion inclusive of pension obligations in 2021 and states that it is on track to reduce another $1.7 billion in 2022. American entered the coronavirus crisis with a higher debt load than competitor airlines following multiple years of heavy capex and simultaneous share repurchases.

Solid Liquidity: American maintained $12.4 billion of cash and short-term investments at YE 2021 along with full availability under its $2.8 billion in revolving credit facilities and $568 million in short-term revolvers. Fitch views current liquidity as sufficient to cover near-term needs, particularly as airline traffic has recovered to a point where the company is no longer regularly burning cash. Scheduled principal payments for 2022 are manageable at $2.6 billion.

Maturities become more substantial in 2023 and particularly in 2025 when the company's $2.5 billion secured notes and its 2013 term-loan mature. Fitch expects passenger traffic to continue to improve from pandemic lows, allowing American to address maturities through a combination of FCF, cash on hand and potential refinancing. Capital spending requirements are manageable now that American has moved past the bulk of its re-fleeting efforts.