Airline Balance Sheet Comparison

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05-08-2020 | 12:35 PM

#21

El Guapo

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How do unfunded pension liabilities play into these numbers?

05-08-2020 | 01:42 PM

#22

full of luv

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From: Narrow/Left Wide/Right

Quote:

Originally Posted by El Guapo

How do unfunded pension liabilities play into these numbers?

We don't talk about those.......nobody does, even the govt.....it's like they don't exist.

05-08-2020 | 02:25 PM

#23

ZapBrannigan

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From: Boeing 737

Quote:

Originally Posted by full of luv

We don't talk about those.......nobody does, even the govt.....it's like they don't exist.

Who still gets a pension?

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05-08-2020 | 02:47 PM

#24

hoover

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From: cpt 737

Quote:

Originally Posted by ZapBrannigan

Who still gets a pension?

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Alaska? I think they have a grandfather policy that new guys dont get

05-08-2020 | 02:48 PM

#25

4V14T0R

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Quote:

Originally Posted by ZapBrannigan

Who still gets a pension?

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Am I mistaken or do they no longer have liability after their last BKs?

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05-08-2020 | 03:14 PM

#26

El Guapo

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Delta certainly does bc some NWA guys kept their

05-08-2020 | 03:56 PM

#27

ZapBrannigan

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Quote:

Originally Posted by 4V14T0R

Am I mistaken or do they no longer have liability after their last BKs?

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At least at my former company the Pension Benefit Guarantee Corp (PBGC) assumed control of those pensions.

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05-08-2020 | 06:55 PM

#28

4V14T0R

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Quote:

Originally Posted by ZapBrannigan

At least at my former company the Pension Benefit Guarantee Corp (PBGC) assumed control of those pensions.

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That's how I thought it worked. Didn't know some Alaska and NWA guys still have something though.

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05-08-2020 | 08:12 PM

#29

ZapBrannigan

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The way it worked at our shop was the closer you were to retirement, the more of your pension was awarded. The idea being they lacked the time to recover. For those far from retirement, they got pennies on the dollar. But it's still technically a pension, just administered by PBGC, as opposed to the company.

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05-09-2020 | 04:15 AM

#30

Privateer89

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Quote:

Originally Posted by torpid0

You could make that argument but then how do you explain AA and DAL using MD80's (until now)? Allegiant made big money flying old MD80's. Even Skywest flew the Brasilia (and CRJ50) well past their prime and made a ton of money doing it. There is a cost advantage to the newer aircraft but those old birds - at the right company - can still make lots of money.

I think the name of the game now is to keep the newest fleet and retire old MX heavy airplanes. AA has the most debt by far, but the newest fleet. Along with that they have the most assets, which probably aren’t worth a lot in todays market. And yes SWA will need to take on debt to re fleet but they have typically done that in a responsible way as to not be overly leveraged during a downturn. I think airlines fly older fleets in good times when demand is high and they are paid off and retire them when they are no longer needed. SWA hasn’t yet announced many retirements other than the ones that had been deferred because of the Max delay.