Don't let the door knob hit you where the Good Lord split you!
Don't go away mad then,..... Just go away.
AMR Sees Over $5.5B Cash, Short-Term Invest At End Of 2Q
- Thread starter Bill
- Start date
Don't go away mad then,..... Just go away.
buhbye
Advanced
- Jan 16, 2004
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<_< ----- Does the name Carl Icahn ring a bell here!?Now that would be ironic!
Actually I think this is a very astute observation.
I wouldn't rule out Virgin Air, then we would have carty back....what a play.
Plus if you look at AMR ridding itself of unwanted aircraft.
I think the more reasonable formula might be to split the operations. Sell Domestic keep international?
Then they could have their Eagle low budget carrier, make some money and build the international spokes off the TWA international routes we attained through the purchase. More lucrative and that might also explain them agreeing to a horrible desicion on the wright ammendment and not have to compete with southwest and Jet Blue's. However, since AA carries all of Eagles debt, I think you would have to see that placed somewhere else first.
It is a resonable suggestion, however.
buh-bye!
jimntx
Veteran
Only problem is that International needs domestic feed. AE would not provide sufficient feed. I know quite a few loyal AA customers that would desert AA in a second if Eagle was all the domestic service available to them.
MCI transplant
Veteran
- Jun 4, 2003
- 5,311
- 584
- Banned
- #20
<_< ----- Hey TWAaokc! Now here is a prime example of the aa arrogance I referred to! Don't you agree? :down: Hey AAviator!--- The man said he never worked for aa! O.K! We have to put up with your B.S.! He don't!Don't let the door knob hit you where the Good Lord split you!
Don't go away mad then,..... Just go away.
<_< ----- Hey TWAaokc! Now here is a prime example of the aa arrogance I referred to! Don't you agree? :down: Hey AAviator!--- The man said he never worked for aa! O.K! We have to put up with your B.S.! He don't!
Hey MCI,
He has already sent me an email, and I now have him blocked after telling him what he is. There are some good people at AA, but the ones like him are the ones that give them all a bad name. Thank goodness I retired from TWA inc. and did not have to step foot on AA property.
I flat refuse to use my passes to fly on AA also. Look what AA did to our WONDERFUL FLIGHT ATTENDENTS, and most of the other 20000 employees.
Even F M has seen the light and is getting out.
Would you like for me to copy and post the email on here for all to see?????????????????
From: :censored: Add to Address Book Add Mobile Alert
Date: Sun, 25 Jun 2006 17:39:36 EDT
Subject: not good
To:
**Moderator's Note: Please do not post private conversations (PM or E-Mail) in the public forums.**
If I'm blocked, how did you read my post?
I've never e-mailed you.
Re-send your response.
Liar.
Check your meds.
I blocked you after you first email to me
Ummm, Thats not my e-mail address there dude.
Do you think maybe you have me confused with someone else?
TWU informer
Veteran
- Nov 4, 2003
- 7,550
- 3,731
AN ON TOPIC POST AND QUESTION
I am sure this has been answered before, but I still do not get it.
Call me slow, call me stupid, but how does a company go from the verge of Bankruptcy to over $5 BILLION in unrestricted cash and short term investment, when the operation has reported losing millions quarter after quarter?
I have started a small business myself, to supplement the loss of income from the 2003 without further ratification concessions.
I would love to see the small business, on a smaller scale have a continuous increase in unrestricted cash on hand and short term investments while I report a loss to the US government.
If someone can help me understand how to make this happen, I will leave AA sooner rather than later and will gladly remove myself from this forum for life.
Thanks
I am sure this has been answered before, but I still do not get it.
Call me slow, call me stupid, but how does a company go from the verge of Bankruptcy to over $5 BILLION in unrestricted cash and short term investment, when the operation has reported losing millions quarter after quarter?
I have started a small business myself, to supplement the loss of income from the 2003 without further ratification concessions.
I would love to see the small business, on a smaller scale have a continuous increase in unrestricted cash on hand and short term investments while I report a loss to the US government.
If someone can help me understand how to make this happen, I will leave AA sooner rather than later and will gladly remove myself from this forum for life.
Thanks
Well, when you demand (and get) at least $1.8 billion in wage concessions from your employees plus a couple hundred million in lease and loan concessions from your financiers, and you borrow a couple more billion, and sell a half billion or so in new stock (all of which AA has done since May, 2003), then cash finally starts to pile up. Like it is right now. Fare hikes are finally sticking, causing revenue to balloon as well.
The big factor is depreciation and the accrual system of accounting. When AA paid billions for new airplanes, it didn't write off the whole amount in year one. And that makes sense since new 777s and 738s tend to last 30+ years, so they should be written off a little each year. For AA, it writes off a little over a billion a year in depreciation and amortization - last year $1.164 billion. That's a GAAP expense, reducing net income, but it's an expense that doesn't require cash out now (since the cash for the 777s and 738s was spent in 1999-2003). That's the big difference.
Yes, AA has reported net losses, but it became cash flow positive the moment the concessions became effective in May, 2003. So far, the employees concessions have added at least $5.4 billion (probably more) to the bottom line. The concessions have helped pay the higher fuel bills.
Hey, if you borrow tons of money, and spend it on depreciable assets, then your business could report net losses while piling up cash. But that may not be your best strategy.
