Does AA liquidate one WO
07-25-2020 | 05:05 AM
#281
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Joined: Oct 2019
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AAG doesn’t have a choice: they’re going to HAVE to liquidate, spin-off, and/or merge their wholly-owned carriers. They used their AAdvantage frequently flyer program as collateral to secure government loans to increase liquidity and just this past week got $1.2 billion in loans by using the AA branding as collateral. With a zero equity and $40-50 billion in debt, they can only kick the can down the road so far before they have to take drastic measures...
07-25-2020 | 08:02 AM
#282
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Joined: Apr 2020
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AA would not need 3 WOs to wipesaw. They will renew there contract with Mesa for less planes. Probably a reduction of 25% of Mesa’s AA fleet. But as long as they have Mesa they can wipesaw everyone bc lets be serious, no one can cut cost and lower the bar like Johnny-O. Lol
07-25-2020 | 08:24 AM
#283
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Joined: Dec 2017
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AAG doesn’t have a choice: they’re going to HAVE to liquidate, spin-off, and/or merge their wholly-owned carriers. They used their AAdvantage frequently flyer program as collateral to secure government loans to increase liquidity and just this past week got $1.2 billion in loans by using the AA branding as collateral. With a zero equity and $40-50 billion in debt, they can only kick the can down the road so far before they have to take drastic measures...
07-25-2020 | 10:12 AM
#285
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Joined: Dec 2010
Posts: 3,201
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From: 4A2FU
From my perspective, that wasn't exactly the plan. Trust me SGU was never for a minute happy with how any of that turned out. They do not want a merger with a union carrier (esp ALPA). They do not want a common-carrier petition either, which means they have to keep an acquired regional at arms length with it's own HQ and overhead... defeats the economy of scale.
If they want more capacity, they'll grow it, just like they've done countless times in the past. They can afford to buy planes (especially now, just go out to the desert and pick out the ones you like). If they opened a hiring window tonight, they'd have 1,000 applicants in 24 hours.
If they buy another regional it will be in small pieces at the fire sale.
If they want more capacity, they'll grow it, just like they've done countless times in the past. They can afford to buy planes (especially now, just go out to the desert and pick out the ones you like). If they opened a hiring window tonight, they'd have 1,000 applicants in 24 hours.
If they buy another regional it will be in small pieces at the fire sale.
Buying another regional from AA (or another major) to provide that major with short term liquidity may not make sense financially for OO short term, but could help secure lucrative long term contracts. It's all about the long-game.
We'll see.
07-25-2020 | 11:06 AM
#286
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Joined: Feb 2019
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AA would not need 3 WOs to wipesaw. They will renew there contract with Mesa for less planes. Probably a reduction of 25% of Mesa’s AA fleet. But as long as they have Mesa they can wipesaw everyone bc lets be serious, no one can cut cost and lower the bar like Johnny-O. Lol
Plus Johnny and Dougie go way back. They may have had a spat in June but they’re back together. Mesa is a necessary evil for AA to play against the WO. (Personal though widely held perspective)
Honestly though the best thing for Mesa would be to find a way to use the 900s for UAX flying, (scope relief) even temporarily until all the 175s come on property and then sell the fleet overseas since they’re mostly all owned outright. The United/Mesa relationship is very good vs. the hostile AA. Not a bad thing for Mesa to slowly get away from AA and pursue other opportunities if AA stays as it is today.
08-01-2020 | 10:57 AM
#288
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Joined: May 2016
Posts: 55
Likes: 0
From: FOE/CA
No sh!t sherlock. Think we don’t know this? You even started a standalone thread for it. Nobody is safe and it makes you feel better to single PSA out? Going to start that thread with every regional? You should hit the majors and LCCs, too. Nobody’s safe. What kind of troll jollies does it give you? Useless. Just useless.
08-01-2020 | 11:05 AM
#289
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Joined: Feb 2017
Posts: 151
Likes: 0
No sh!t sherlock. Think we don’t know this? You even started a standalone thread for it. Nobody is safe and it makes you feel better to single PSA out? Going to start that thread with every regional? You should hit the majors and LCCs, too. Nobody’s safe. What kind of troll jollies does it give you? Useless. Just useless.
08-01-2020 | 11:17 AM
#290
Line Holder
Joined: Oct 2017
Posts: 969
Likes: 17
No sh!t sherlock. Think we don’t know this? You even started a standalone thread for it. Nobody is safe and it makes you feel better to single PSA out? Going to start that thread with every regional? You should hit the majors and LCCs, too. Nobody’s safe. What kind of troll jollies does it give you? Useless. Just useless.
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