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So in other words AA will buy NWA and then pretty much shrink back to the same size they were before the purchase? Just like when they purchased Air Cal, then got rid of everything, then bought the same stuff with Reno?
Todays AA has fewer employees than they had prior to the purchase of TWA.
Sort of, Mr Owens. If AA buys NW (or a large part of it), the motivation won't be to get all that much larger. The real motivation will be to capture as much as the higher yielding business traffic and, of course, the China and NRT access.
Consolidation among the legacies is necessary because of the growth of non-legacy LCCs and even legacy LCCs like WN. As those companies add airplanes and routes, the legacies must downguage their airplanes and routes or risk flying emptier airplanes.
Like I've said before, we don't really need quite so many smaller airplanes flying from eastern and midwestern hubs to western cities like LAX, SAN, SFO and SEA. Legacies' collective financial health will be aided if there are fewer larger airplanes flying between those cities thru fewer hubs. That's the only way to keep us from seeing transcon RJs that offer First Class - cause that's where we're slowly headed, otherwise.
Passengers in IND, for example, don't really need six legacy choices offering First Class seats for their trips to those western cities thru at least half a dozen hubs.
More and more pax seem to prefer flying B6 and FL and WN, and keeping six legacies alive out of sentimental reasons is just as stupid an idea as the stupid exec decisions of which you often complain. Three legacy choices offering First Class is probably more than enough. Those turned off by the higher fares (that will probably happen) can fly one of the discount busses.
It's not all about getting larger - it's about flying a higher percentage of higher fare business travelers and a smaller percentage of garbage fare passenger.
Will LCCs backfill routes cancelled by the consolidating legacies? Of course they will. But they'll do that even if the legacies don't combine. B6 and WN and FL and the others will continue to grow even if we still have six full service legacy choices.
... If AA buys NW (or a large part of it), the motivation won't be to get all that much larger. The real motivation will be to capture as much as the higher yielding business traffic and, of course, the China and NRT access.
Consolidation among the legacies is necessary because of the growth of non-legacy LCCs and even legacy LCCs like WN. As those companies add airplanes and routes, the legacies must downguage their airplanes and routes or risk flying emptier airplanes.
Like I've said before, we don't really need quite so many smaller airplanes flying from eastern and midwestern hubs to western cities like LAX, SAN, SFO and SEA. Legacies' collective financial health will be aided if there are fewer larger airplanes flying between those cities thru fewer hubs. That's the only way to keep us from seeing transcon RJs that offer First Class - cause that's where we're slowly headed, otherwise.
Passengers in IND, for example, don't really need six legacy choices offering First Class seats for their trips to those western cities thru at least half a dozen hubs.
More and more pax seem to prefer flying B6 and FL and WN, and keeping six legacies alive out of sentimental reasons is just as stupid an idea as the stupid exec decisions of which you often complain. Three legacy choices offering First Class is probably more than enough. Those turned off by the higher fares (that will probably happen) can fly one of the discount busses.
It's not all about getting larger - it's about flying a higher percentage of higher fare business travelers and a smaller percentage of garbage fare passenger.
Will LCCs backfill routes cancelled by the consolidating legacies? Of course they will. But they'll do that even if the legacies don't combine. B6 and WN and FL and the others will continue to grow even if we still have six full service legacy choices.
I think the new NWDAL should cherry pick AA's heathrow routes when it can nolonger support $31 Billion in current debt (and growing).
That [LHR] is pretty much the only thing of value as Delta's Latin American system covers all the business centers.
Where'd the $31B figure come from? Or is that just a drug induced fantasy on your part?
Last I heard, AMR was still holding debt in the low $20B. Sure, AMR could pay it down faster than they're already doing, but tying up liquid assets is downright stupid if you've got favorable lending terms and the ability to meet those obligations for the immediate future.
That's got to be about the dumbest thing I've heard in a long time. WT, is that you hiding behind a new name??
Try AA's cash balance report.
If that's about the dumbest thing you heard in a long time...sadly, that says quite abit about your learning curve.
Several newspapers have reported AMR debt at between $19.5B and $20B in the past couple weeks as all the merger hysteria takes hold. That's more or less in line with previous reports, which had it at $22B last year and about $1.4B of debt paydowns as of the 3Q06 10Q filing with the SEC.
If you think that you can accurately extrapolate debt from just a cashflow statement, you're the one with the learning curve.
You can figure out liabilities, but that's not the same as long term debt. Some debt is broken out specifically, but even the Wall Street analysts have to ask what the long-term debt estimate is, and if Gary Chase or Jamie Baker can't figure it out, then it's highly unlikely that you've managed to master the art any better than those who do analysis for a living...
lol pot meet kettle. You might be wise to follow your own adviseFormer moderator (must be for a reason). Stay away from financial services.
Let me simplify it for you. When AA goes to borrow money lenders review it's balance sheet. AA's balance sheet clearly denotes $30.9 [and some change] in debt.
Former moderator (must be for a reason). Stay away from financial services.