Kev3188
Veteran
Doom and gloom article definitely generate clicks, but I think all of us need to be clear-eyed about what may be coming after 9/30.
AA and Labor Negotiations-2020
- Thread starter Eagle
- Start date
CremaDiLimone
Veteran
- Jun 8, 2016
- 1,817
- 154
no doubt.
can obviously be debated, i'm guessing that there will be - if needed - another govt. infusion with company imposed caveats..including layoffs.
we talked about those who took a leave AND filed for unemployment, who may need that unemployment in nov and dec, not padding their incomes for the moment.
only so many weeks of unemployment and the weekly govt. $600 christmas present ends in july. can be argued that the 'extra' $600 is best to be taken now, no guarantee that will be fired up again.
can obviously be debated, i'm guessing that there will be - if needed - another govt. infusion with company imposed caveats..including layoffs.
we talked about those who took a leave AND filed for unemployment, who may need that unemployment in nov and dec, not padding their incomes for the moment.
only so many weeks of unemployment and the weekly govt. $600 christmas present ends in july. can be argued that the 'extra' $600 is best to be taken now, no guarantee that will be fired up again.
V.O. Reason
Veteran
- May 3, 2019
- 659
- 88
Well it’s not a matter of if AA files just when.
Everything I’m reading they can’t sustain this kind of debt forever and the passenger numbers are just not coming back anytime soon
Don’t like the doom an gloom either but there comes a time when one must face reality
1986Mekanic
Veteran
- Jun 1, 2018
- 572
- 98
Well,, to be fair, don't forget, he used to clean airplanes and whats more, his wife is in fleet service, so... Mind your Ps & Qs Mr....
1986Mekanic
Veteran
- Jun 1, 2018
- 572
- 98
Been to the store to try and get ammo for plinking lately?
robbedagain
Veteran
- Oct 13, 2003
- 11,125
- 2,676
No mention of GE. But they think Spirit n AA are in the most dire esp 2nd qtr if losses are equal or worse than 1st qrtr
they are looking to hire someone to tell them what to do...
the article i read mentioned the same thing, the further claimed that the size of debt that aa carries would be hard to carry with a significantly smaller airline.
- Aug 20, 2002
- 7,319
- 1,555
Perhaps you could link that article so the rest of us could read it?
robbedagain
Veteran
- Oct 13, 2003
- 11,125
- 2,676
It was in google search area
robbedagain
Veteran
- Oct 13, 2003
- 11,125
- 2,676
Sorry bick. Couldn't find it. But i believe it came from Investors magazine or similar. Bit it did mention both AA and Spirit
If AA files just watch their Cash reserves on hand. You need money to go into BK to pay all the lawyers so they can screw the employees and debt collectors. I see something after October. All airlines will shrink.
Layoff, retire aircraft and hold off or greatly reduce new aircraft into the fleet. AA in the news seems to be worst rated in many avenues because of it's high debt.
We just happen to have a management team that was interested in making profits and ignoring customer service and positive employee relations. This team never took control of an airline this massive. They never where faced with a crisis like this and can't handle it. There's no money in it for them anymore. They never seemed to plan for long term success. They took the huge record breaking profits and squandered it with buybacks, executive compensation, new aircraft and a new headquarters. Short sighted and in denial. That ripcord is very close to the hip. File and pull the cord. Let's see how long AA can operate at this pace.
Layoff, retire aircraft and hold off or greatly reduce new aircraft into the fleet. AA in the news seems to be worst rated in many avenues because of it's high debt.
We just happen to have a management team that was interested in making profits and ignoring customer service and positive employee relations. This team never took control of an airline this massive. They never where faced with a crisis like this and can't handle it. There's no money in it for them anymore. They never seemed to plan for long term success. They took the huge record breaking profits and squandered it with buybacks, executive compensation, new aircraft and a new headquarters. Short sighted and in denial. That ripcord is very close to the hip. File and pull the cord. Let's see how long AA can operate at this pace.
eolesen
Veteran
- Jul 23, 2003
- 15,940
- 9,371
Bingo. It's all about cash. Thank God fuel is dirt cheap. That's usually the highest cost item, and now it's payroll.
Sure, but GE has cashflow. They produce things like medical equipment and durable goods that are always in demand. Nobody stopped doing laundry or storing food in a refrigerator over COVID...
Yeah, it's the airplane orders that will hurt the most. AA went to the factory to get the youngest fleet in the US industry while UA and DL were buying gently used airplanes on the secondary market. Now they're stuck with a bunch of new airplanes that nobody else wants.
The headquarters... AA was quite proud of going to that newfangled no-cube open plan seating that has people sitting randomly and right next to each other with no privacy. Turns out that you can't properly social distance with that arrangement, and you also can't necessarily do the contact tracing to let people know that the guy next to you tested positive for COVID-19, -20, or -21... Layoffs will help, but someone's going to now have to find money for new furniture, too.
Oh crap, did the media say there is gonna be a shortage of ammo?
