AA's currency impairments

[WorldTraveler]

Cash—As of September 30, 2014, the Company had approximately $8.8 billion in total cash and short-term investments, of which $875 million was
restricted. The Company also had an undrawn revolving credit facility of $1.0 billion. Approximately $721 million of the Company’s unrestricted cash
balance was held in Venezuelan bolivars, valued at the weighted average applicable exchange rate of 6.41 bolivars to the dollar. The Company’s cash
balance held in Venezuelan bolivars decreased $70 million from the June 30, 2014 balance of $791 million, due primarily to $48 million in
repatriations in the third quarter of 2014 ($31 million valued at 6.3 bolivars to the dollar and $17 million valued at 10.6 bolivars to the dollar). This
balance also reflects the Company’s significant reduction in capacity in this market, pending further repatriation of funds and due to a decrease in
demand for air travel resulting from the effective devaluation of the bolivar. The Company’s September 30, 2014 cash balance includes approximately
$94 million valued at 4.3 bolivars, approximately $580 million valued at 6.3 bolivars, and approximately $47 million valued at 12.0 bolivars, with the
rate depending on the date the Company submitted its repatriation request to the Venezuelan government. The Company is continuing to work with
Venezuelan authorities regarding the timing and exchange rate applicable to the repatriation of funds held in local currency. The Company is
monitoring this situation closely and continues to evaluate its holdings of Venezuelan bolivars for potential impairment.

--AA investor update, October 23, 2014
 
SEC filings show that AA has taken currency impairments regarding Venezuela in the past.

 

[jcw]

Exactly

Find us some DL impairments

Do you ever find a positive in anything in an AA report or is that impossible

 

[robbedagain]

Its impossible for him

 

[jimntx]

No.  He is compelled to click his ruby slippers together and say "There's no place like Delta.  There's no place like Delta."  And, then the wicked witch requires him to find something(anything!) negative about AA.  He and the wicked witch both operate under the delusion that anyone gives a farthing about what he has to say.

 

[LD3]

This topic was incorrectly titled, it should have been: "WT's Impairments".

 

[FWAAA]

He's reduced now to simply cutting and pasting parts of the 10-Q and the only original content he added was this:

SEC filings show that AA has taken currency impairments regarding Venezuela in the past.

He doesn't cite or link to any of those alleged previous currency impairments, but that's par for his course.

LD3: Excellent comment!

 

[Glenn Quagmire]

He's reduced now to simply cutting and pasting parts of the 10-Q and the only original content he added was this:He doesn't cite or link to any of those alleged previous currency impairments, but that's par for his course.LD3: Excellent comment!

Here is a cut/paste from a report:

Active Posts 13472

-4281 Bad

http://www.airlineforums.com/user/3051-worldtraveler/

I wonder if one could spin that into a positive?

 

[eolesen]

Must.... grind..... AAxe........

 

[FrugalFlyerv2.0]

Here is a cut/paste from a report:

Active Posts 13472

-4281 Bad

http://www.airlineforums.com/user/3051-worldtraveler/

I wonder if one could spin that into a positive?

 
Let me try:
 
Obviously you've only posted the raw numbers and conveniently failed to do a proper analysis and thus failed to grasp their meaning.
 
 
The ratio of # of votes : posts is approx. 0.3 for WT
 
Compare that to your ratio of # of votes : posts of approx. 0.65
 
Similarly jcw scores even worse:  approx. 0.75
 
Everybody knows that the lower value of the ratio (i.e. closer to 0) is far superior, as it is closer to neutrality, naturally.
 
This is called winning in the marketplace of opinions.  And that is a FACT.

 

[WeAAsles]

Another area that should be consider is that currently WT has 13,472 of which 4288 of his postings or opinions have been given a RED mark. Now WT has an opinion that people are out to get him and that the score is false because it's a personal and not a professional assessment.

That's clearly delusional thinking because most of us here I think just want to discuss the topics with honesty to the information out there and would reward the poster if his facts reflected truth.

So by the percentages of RED my guess is that the majority are for his lack of credibility and not because he is just a horse's XXX.

 

[jcw]

Let me try:
 
Obviously you've only posted the raw numbers and conveniently failed to do a proper analysis and thus failed to grasp their meaning.
 
 
The ratio of # of votes : posts is approx. 0.3 for WT
 
Compare that to your ratio of # of votes : posts of approx. 0.65
 
Similarly jcw scores even worse:  approx. 0.75
 
Everybody knows that the lower value of the ratio (i.e. closer to 0) is far superior, as it is closer to neutrality, naturally.
 
This is called winning in the marketplace of opinions.  And that is a FACT.

Is this a new financial metric

So you would have to see that WT has almost 5k in negative votes on 13000 posts vs 400 some positive votes on 600 posts

Seems like the negative votes can't make up ground

Now that's a fact

Just like 47% drop in operating margin and AA made more money than DL this quarter

 

[eolesen]

To be fair, it's not a matter of only 4000 posts being voted on, and more than 4000 people voted on WT's posts.

You can have ten people vote on a post and still have a 0 score because they offset each other.

 

[WeAAsles]

Here is a cut/paste from a report:

Active Posts 13472

-4281 Bad

http://www.airlineforums.com/user/3051-worldtraveler/

I wonder if one could spin that into a positive?

The numbers you posted are raw form analytical data that do not paint a true picture for the metrics of plausibility. They fail to encompass the statistical hypothesis and are thus flawed by not allowing for the Heisenburg principle of Quantum Mechanics. All things being equal, Einstein was incorrect. E does not equal MC squared.

http://en.wikipedia.org/wiki/Uncertainty_principle

 

[WorldTraveler]

is it a surprise that on yet one more time, the peanut gallery has resorted to character assassination because the can't deal with the reality that AA has a far bigger risk of currency impairment that any US carrier has because of bad currency hedges.

in almost a day since I started this thread, not one person has bothered to find the amounts of AA's current impairments due to Venezuela before - and those were based on changing currency rates, not the incomplete inability to repatriate earnings which is what AA and other carriers face now.

for years, people on here have touted how big and profitable AA is in Latin America.

and they HAVE BEEN right.

but Latin America is composed of dozens of countries that function economically and politically very different from other parts of the world.

Venezuela and Argentina BOTH have always been far to the left of norm in both respects. Other countries are the same but Venezuela and Argentina are the focus right now.

There is a reason why AA's RASM decline in Latin America was 11.7% for the quarter - not only far higher than any other carrier on a percentage basis but also far, far higher on a dollar basis because of AA"s much larger size.

Factor in the surging dollar vs. real in Brazil (at 5 year highs) and AA's Latin America operation could quickly become a huge liability.

Once again, AA has NO currency hedges. DL and other carriers do.

You can't cost effectively hedge some currencies such as are involved with Argentina and Venezuela because they do not trade freely on global markets. and that reality is completely different from what exists with oil.

thus, AA faces the possibility of a very long winter as what is typically one of the most profitable times of the year for Latin America goes down the tubes.

and what happens in Latin America has enormous implications for AA's ability to pass out pay rates and grow the company elsewhere.

 

[jcw]

Actually no one will bother since your grinding an axe

You would have to be living under a rock to not know there is a currency problem

Let's see how many airlines have reduced flying to Venezuela

How much did DL lose in currency

But once again AA made more money than DL even with the currency challenges in the region

I remember that DL dropped their operating margin by 47%

Go on the DL section and start a thread on every negative comment in DLs filing then we will know you can be objective