American Facing More Cost Struggles

[AMFAMAN]

MCI,

Thanks to this loss by the twu...

http://www.twu562.org/System%20Protection%20Decision.pdf

The current nAAtives without system protection is:

667

The current ex-TWAers left is:

937

 

[MCI transplant]

<_< AMFAMAN-----Thanks for the info. 1,600 title 1 is not much of a cusion! And they will be the first to go. I do believe the days of protected employees is just about over! The question in my mind now is if aa will turn away third part work to "save" money? One of my questions at one of our Manegment/worker meetings was," Sometimes a company has to spend $10.00 to make $100.00! Are you welling to do just that?" My answeer was nothing short of back peddeling! In otherwords I got my answeer, and it was "NO"! This type of mindset is what we have to deal with! They come to us to ask us how to do their jobs, but when we tell them what we feel it'll take to turn this place arround, they don't like what they hear!!!

 

[Hopeful]

<_< AMFAMAN-----Thanks for the info. 1,600 title 1 is not much of a cusion! And they will be the first to go. I do believe the days of protected employees is just about over! The question in my mind now is if aa will turn away third part work to "save" money? One of my questions at one of our Manegment/worker meetings was," Sometimes a company has to spend $10.00 to make $100.00! Are you welling to do just that?" My answeer was nothing short of back peddeling! In otherwords I got my answeer, and it was "NO"! This type of mindset is what we have to deal with! They come to us to ask us how to do their jobs, but when we tell them what we feel it'll take to turn this place arround, they don't like what they hear!!!

Welcome to AA World!

 

[Connected1]

FWIW, none of this "cost struggle" information was news. Beer spoke about these very numbers in his January conference call. There are still $1B in new revenue/cost initiatives that are more than offsetting the cost headwinds.

Some of these news organizations are just late to the party and don't have a good sense of where to find the real headlines.

 

[Bagbelt]

We are carrying 4 billion of that debt as a "cushion" and a lot of the debt load matures years from now. Considering a revenue stream of $22 billion a year, it doesn't seem to justify the sky is falling. The stock price has gone up because there are only us and CAL left. What others have gained even in bankruptcy doesn't seem much of a cost advantage. I think Ua is handling $16 billion of debt @9%. The union arguement is irrelevant, the courts and the government are allowing airlines to do what they want, just like Big steel and soon the auto industry. Unless the workers industrywide can act together anything the unions can hold will have to count as a win.

 

[FWAAA]

We are carrying 4 billion of that debt as a "cushion" and a lot of the debt load matures years from now. Considering a revenue stream of $22 billion a year, it doesn't seem to justify the sky is falling. The stock price has gone up because there are only us and CAL left. What others have gained even in bankruptcy doesn't seem much of a cost advantage. I think Ua is handling $16 billion of debt @9%. The union arguement is irrelevant, the courts and the government are allowing airlines to do what they want, just like Big steel and soon the auto industry. Unless the workers industrywide can act together anything the unions can hold will have to count as a win.

True, and from page 61 of the AMR 10-K filed last week:

Maturities of long-term debt (including sinking fund requirements) for the next five years are: 2006 — $1.1 billion; 2007 — $1.2 billion; 2008 — $665 million; 2009 — $1.7 billion; 2010 — $1.1 billion.

$1.1 billion of debt matures this year. Somewhere I saw that AA paid off about a billion of debt last year.

Sky isn't falling, but it's not yet clear sailing.

 

[eolesen]

Somewhere I saw that AA paid off about a billion of debt last year.

Sort of. As I understand it, that debt was paid off using cash raised from the issuance of new debt and the stock, with the intent of paying down debt this year using cashflow from operations, assuming it remains positive.

 

[FWAAA]

Sort of. As I understand it, that debt was paid off using cash raised from the issuance of new debt and the stock, with the intent of paying down debt this year using cashflow from operations, assuming it remains positive.

Good point - thanks for the clarification.

It would be great if AMR could sell another 40 million shares this week for a billion dollars or if it could borrow a billion long-term at favorable rates to help finance the maturing debt.

Although debt can be a good thing - replacing some more of AA's current debt with equity would be helpful right now.

 

[B.O.B.]

How about starting with not paying Dan Garton his $1.7 million in April!

 

[TIME FOR CHANGE]

I was told they want another 90 million from the maint folks.
The line presidents were told to come up with 25 million of the 90.

I think the line presidents told them to get @%$ked

How about starting with not paying Dan Garton his $1.7 million in April!

They must pay that in order to retain him here at AA
After all...
without that quality decision making AA wouldnt be in the finacial position it is today

 

[B.O.B.]

They must pay that in order to retain him here at AA.
After all...
without that quality decision making AA wouldnt be in the finacial position it is today

Bull****, excuse me!