American Airlines: Gone within 18 months??

  • Thread starter Deleted member 27505
  • Start date

American Airlines dead by Jan-2021??

  • Agree?

    Votes: 13 10.4%
  • Disagree?

    Votes: 93 74.4%
  • I don't give an ass. The aviation industry is a joke.

    Votes: 16 12.8%
  • I agree, but only because the freaking world will end by J-21?

    Votes: 3 2.4%

  • Total voters
    125
D

Deleted member 27505

Guest
Hi Kids!

Your favorite curmudgeon, iconoclast, and ass-clown agent provocateur here.

American Airlines - and most other domestic carriers - have had a brilliant run the last ten years. Some took advantageous advantage of those phat stacks of profit-cash rolling in. They hardened their structures and operations for sustainability into an unknown and uncaring future. Others, like American, doubled down at the twenty-one table and bet the farm on the tall, good-looking-in-a-suit, seemingly confident and competent CEO.

It is my belief that during the last decade, American Airlines demonstrated some of the poorest management of all the airlines.

Therefore, I have a suspicion that American Airlines is going to cease to exist (at least in its current form) within the next 18 months.

What do you think?
 
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tcco94

Professional GTA V Pilot
Chapter 11 requires you to have someone fund your time spent restructuring.

If nobody will write the check, then the airline liquidates under chapter 7.
Isn't that why you have to enter chapter 11 with capital? Albeit capital that comes from debt
 
D

Deleted member 27505

Guest
J. Crew entered C-11 Bankruptcy with almost $2B debt.

A couple questions:

1. Who the hell would loan J. Crew 2B dollars, and why?!?!? Fellow country club member? Fellow undergrad frat boys? Fellow never-passed-a-test-without-cheating prep school bro?

2. Who the hell is going to loan J. Crew any more money to try to drag their sorry, consumer-whim-driven, materialist, vacuous ass out of chapter 11 bankruptcy??

American Airlines is somewhat similar. Who are these people who loan these woefully dysfunctionally-mangaged companies more and more and more money???

I know a bunch of folks that have really good ideas and really well laid out planes for really good economic offerings, and they can't get a freaking dime of funding.
 
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tcco94

Professional GTA V Pilot
J. Crew entered C-11 Bankruptcy with almost $B debt.

A couple questions:

1. Who the hell would loan J. Crew 2B dollars, and why? Fellow country club member? Fellow undergrad frat boy? Fellow never-passed-a-test-without-cheating prep school bro?

2. Who the hell is going to loan J. Crew any more money to try to drag their sorry, consumer-driven, materialist, vacuous ass out of chapter 11 bankruptcy??

American Airlines is somewhat similar. Who are these people who loan these woefully dysfunctionally-mangaged companies more and more and more money???

I know a bunch of folks that have really good ideas and really well laid out planes for really good economic offerings, and they can't get a freaking dime of funding.
I don't see the comparison in J. Crew (a company struggling pre pandemic anyways) to AA.

Also, I'm not so sure I agree with the no one will come offering either.

 

Kingairer

'Tiger Team' Member
Hi Kids!

Your favorite curmudgeon, iconoclast, and ass-clown agent provocateur here.

American Airlines - and most other domestic carriers - have had a brilliant run the last ten years. Some took advantageous advantage of those phat stacks of profit-cash rolling in. They hardened their structures and operations for sustainability into an unknown and uncaring future. Others, like American, doubled down at the twenty-one table and bet the farm on the tall, good-looking-in-a-suit, seemingly confident and competent CEO.

It is my belief that during the last decade, American Airlines demonstrated some of the poorest management of all the airlines.

Therefore, I have a suspicion that American Airlines is going to cease to exist (at least in its current form) within the next 18 months.

What do you think?
Where is the middle finger emoji ?
 
D

Deleted member 27505

Guest
I don't see the comparison in J. Crew (a company struggling pre pandemic anyways) to AA.

Also, I'm not so sure I agree with the no one will come offering either.

Yes, I get it. But don't feel too bad. Lots of people don't see that AA also demonstrated exceptionally lousy and self-serving pre-covid management... I kinda, sorta tried to bring that to your attention in my OP.

Lots of people don't see lots, and lots, and lots, and lots, and lots of things. That is precisely the problem these days.

Lot's of people love Jesus... without even knowing why.

I think I know why.

Jesus was the righteous dude who forgave the uninformed: "Forgive them, Lord. They know not what they do."
 

srn121

Well-Known Member
J. Crew entered C-11 Bankruptcy with almost $2B debt.

A couple questions:

1. Who the hell would loan J. Crew 2B dollars, and why?!?!? Fellow country club member? Fellow undergrad frat boys? Fellow never-passed-a-test-without-cheating prep school bro?
They're being lent 2B dollars? I thought they were getting 100 to 400 million in financing, likely secured against some of their assets like real estate, but the current bondholders converted something like 1.6 billion of loans to equity which I'm guessing their creditors thought was a better deal than forcing them into Chapter 7 and only getting a fraction of their money back.

As for American who knows what will happen and I'd expect they'd get some form of bailout if this coronavirus continues to impact their business. I bet on the LCCs doing better, because their less dependent than the big 3 on first class and international travel, but we'll see how things pan out and a lot of pilots will have bigger problems as noone in this industry saw this happening a year ago and for as much as I hate the management at say United I can't blame them for anything other than being too lean like too many companies are these days.
 
D

Deleted member 27505

Guest
They're being lent 2B dollars? I thought they were getting 100 to 400 million in financing, likely secured against some of their assets like real estate, but the current bondholders converted something like 1.6 billion of loans to equity which I'm guessing their creditors thought was a better deal than forcing them into Chapter 7 and only getting a fraction of their money back.

As for American who knows what will happen and I'd expect they'd get some form of bailout if this coronavirus continues to impact their business. I bet on the LCCs doing better, because their less dependent than the big 3 on first class and international travel, but we'll see how things pan out and a lot of pilots will have bigger problems as noone in this industry saw this happening a year ago and for as much as I hate the management at say United I can't blame them for anything other than being too lean like too many companies are these days.
Again with the reading/interpretation/perspective skills deficit...

No, they were lent almost $2B; That's the debt they couldn't serve which drove them into bankruptcy.

The sense of awe I possess around my inquiry is concentrated on that issue: Who the hell lends $2B to a freaking clothing retailer????????

Shiny.

Shiny. Shiny. Shiny.

'Murica!
 
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D

Deleted member 27505

Guest
Your date/math skills are on point too.
View attachment 53495
Yeah. I recognized that when I posted. It was just a swag to make the date easier... you know, comport with a significant calendar event - turn of the year and all.

But if you want to pull the precise like that, I'm totally game for that game...

Here on out, let's play by your rules. I love specificity. Bring it.

(Edit: Doh!! GD'mit!! Ok, mea culpa. What the president meant to say was Jan '22 (which still isn't exactly 18 months. Point being: My bad. I own it.)
 
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D

Deleted member 27505

Guest
They're being lent 2B dollars? I thought they were getting 100 to 400 million in financing, likely secured against some of their assets like real estate, but the current bondholders converted something like 1.6 billion of loans to equity which I'm guessing their creditors thought was a better deal than forcing them into Chapter 7 and only getting a fraction of their money back.

As for American who knows what will happen and I'd expect they'd get some form of bailout if this coronavirus continues to impact their business. I bet on the LCCs doing better, because their less dependent than the big 3 on first class and international travel, but we'll see how things pan out and a lot of pilots will have bigger problems as noone in this industry saw this happening a year ago and for as much as I hate the management at say United I can't blame them for anything other than being too lean like too many companies are these days.
Another comment regarding your post.

Aren't you one of those "rugged individualist free market" dudes? If so, how is it you are now so blase regarding government handouts to formerly-regulated, now-"free"-market corporations???? Hmmmmmm???
 
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