AA updates investors, defers aircraft, raises CASM guidance

[topDawg]

Yes please.

As for the refinery, the facility itself may lose $$, but if it still results in an overall savings to the carrier, who cares?

*I'm aware of the irony in discussing Trainer after agreeing about keeping the AA board AA related. Sorry for the drift...

what a crazy idea......... 
 

AA could always emulate DL:  purchase a decrepit refinery, sink oodles of money into it to bring it back online, and sustain several years of operational loses before it breaks even - but - it would certainly save on financing costs for new planes and lower the costs to fill up fuel-inefficient planes.  For a carrier like DL, that is called 'winning' by some posters on these boards.

not to jump into this one but pretty sure it was a year, maybe two?
 

So American airlines defers aircraft deliveries in Delta cancels theirs

Management trying to piss off the pilots. They are coming + a lot more E90s once they get a contract. 

 

[jimntx]

Just FYI...I was told this week that all flight attendant training classes for the rest of the year have been deferred until next year.  Don't know whether this is connected to the a/c delivery deferments or to the fact that the newhires currently onboard are flying 40-50 hours/month on reserve and getting paid for 75 hours.

 

[WorldTraveler]

no growth in fleet and a shrinking fleet means no growth for employees.

 

[jcw]

no growth in fleet and a shrinking fleet means no growth for employees.

 
Exactly when an airline cancels orders vs deferrals it's bad for employees
 
One airline is deferring orders - one is canceling orders as retaliation of a vote - interesting analysis by you on how the growth of airframes impacts employees

 

[WorldTraveler]

Cancellation of the E190 and 739 order at one airline creates the same result as AA's decision to defer aircraft for economic reasons.

Growth of the company and of flying is good for employees. No growth is bad.

AA is cutting back its growth and advised investors it would do so. Other carriers have said the same thing for economic reasons and labor contracts are absolutely economic related. Nowhere have I said there is any difference in the end for one company over another.

 

[bob@las-AA]

AAs fleet ( avg age, fuel efficiency, etc) is so far ahead of any other legacy, its not even worth wasting the time to argue! Except for DL, who may be secretly buying up AAs old MD 80s!

Now that funny!!! Nice post!!!
+22

 

[WorldTraveler]

it's actually not a secret. Dl sees value in the parts that AA is getting rid of.

Same for other airline's aircraft.

the question is can each carrier deliver the same return on invested capital metric..... WN is mighty proud of its ROIC which is similar to DL's. I can't recall what AA has said its ratio is... .anyone?

 

[jcw]

Let's see since DL has announced earnings and no one else has for the quarter you can't do side by side comparisons for this quarter - let's use year end 2014

WN - 20.65
DL - 7.87
AA- 43.73

 

[WorldTraveler]

Sure you can. Just wait til later this week

AA likely has a fuel cost advantage but a revenue disadvantage. We'll see how it all washes out.