American Airlines parent to prepay $545M in debt

[Hatu]

AMR Corp. says it plans to prepay $545 million in aircraft debt in the fourth quarter this year to improve its balance sheet.
The prepayment is in addition to the $1.3 billion in regularly scheduled principal payment AMR (NYSE: AMR - News) has in 2007. The American Airlines parent company expects the additional payment will initially eliminate about $25 million in annual interest expense and release 16 aircraft used to secure the loan.

http://biz.yahoo.com/bizj/071001/1528623.html?.v=1

 

[IORFA]

The loon from UA won't like this one bit!!!

 

[StraaightTaalk]

The loon from UA won't like this one bit!!!

 

[FA Mikey]

wondering how this will effect 3rd qtr results

 

[eolesen]

wondering how this will effect 3rd qtr results

It shouldn't. The payment is going to be during 4Q. The bigger question is how will it affect profit sharing. My guess is that it won't be taken into consideration, but you never know, since AA has find a way of screwing its employees one way or another...

 

[FA Mikey]

But no matter what you gave everyone here, no one would be happy. IF tomorrow AA brought everyones pay back to what it was, we would here how the work rules, and management screwed us, gave us hush money. If there was a lump sum for all the past wages we would hear how everyone got screwed in taxes and on and on.

I am so tired of hearing how low moral is tied to wages. All I know is that most of the people who go on with that line were lazy and worthless before the pay cuts, and are just as lazy now. Difference is they now believe they have a reason sad and weak as it is.

 

[jersey777]

But no matter what you gave everyone here, no one would be happy. IF tomorrow AA brought everyones pay back to what it was, we would here how the work rules, and management screwed us, gave us hush money. If there was a lump sum for all the past wages we would hear how everyone got screwed in taxes and on and on.

I am so tired of hearing how low moral is tied to wages. All I know is that most of the people who go on with that line were lazy and worthless before the pay cuts, and are just as lazy now. Difference is they now believe they have a reason sad and weak as it is.

You sound like a member of management.

 

[FA Mikey]

Yet you cannot challenge the context of the statement.

 

[eolesen]

Yep. I heard the same "we don't get paid enough" line from the time I started in 1989 until the day I left. It doesn't matter how much someone was making, they always felt they weren't getting as much as they deserved.... yet they'd show up to work year after year instead of finding someplace that was willing to pay them what they thought they were worth....

 

[Connected1]

The bigger question is how will it affect profit sharing.

It won't. Prepayment of debt principal is not an expense. If anything it would help the bottom line to the extent that the company pays less interest on outstanding debt in 4Q.

 

[NewHampshire Black Bears]

Anytime AA can reduce debt, is a GOOD thing,.........................Especially when they(correctly) say, it improves LIQUIDITY ...(OOOOH, I love it when they talk(Aviation) Erotic, like that) !!!!!!!!

Since AA WON'T be buying another carrier anytime soon,...Liquidity = new/more LONG RANGE Birds

 

[Hopeful]

But no matter what you gave everyone here, no one would be happy. IF tomorrow AA brought everyones pay back to what it was, we would here how the work rules, and management screwed us, gave us hush money. If there was a lump sum for all the past wages we would hear how everyone got screwed in taxes and on and on.

I am so tired of hearing how low moral is tied to wages. All I know is that most of the people who go on with that line were lazy and worthless before the pay cuts, and are just as lazy now. Difference is they now believe they have a reason sad and weak as it is.

What a crock....When the ULTRA VALUABLE executives threaten to leave, AA compensates, where the rest of us are told if you don't like it, leave.
Spare us the BUSINESS SCHOOL 101 rhetoric that money doesn't motivate. IT SURE AS HELL MOTIVATES THE EXECUTIVES, DOESNT IT, MIKEY?

Morale is more than wage related, When someone doesn't have to work two jobs, he/she can spend more time with family.
And you have some balls saying people on the line are lazy when you are up in a warm or cool cabin putting your rolls and cookies in the oven.
Try working in extreme weather conditions on the ramp doing all the jobs only lazy people want to do.

Where were you when AA executives were compaining how they were under compensated compared to other executives at other companies? You only seem to have issues with the people on the ground.

 

[IORFA]

UMM, pretty sure he was talking ony about F/A's. He never mentioned anyone on the ground/ramp.

 

[Hopeful]

UMM, pretty sure he was talking ony about F/A's. He never mentioned anyone on the ground/ramp.

I believe he was commenting on us TWUers on out negotiation issues.

 

[Boomer]

Yet you cannot challenge the context of the statement.

Sure I can:
The guys on my crew consistently produce the same product with a higher average utilization of available work hours;
the intangibles are the number of flights that are delayed or cancelled due to a lack of parts stocked.

I believe that if you compared the total costs of outsourcing the MX end of the business against what we have captured through insourcing 3P work and absorbing the furloughs and reduction in costs to produce: MX has reduced our costs per ASM below what it would cost o outsource same.

I am not a cheerleader for what has occured because we have no contractual mechanicsm to direct the product of our efforts directly back to those that produced it; but, I can say that we have risen above the mediocrity that manages us to accomplish our numbers to this point.