When will AA Declare Bankruptcy?

[iflyjetz]

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On 1/19/2003 12:17:23 PM flyhigh wrote:

A couple points about CAL that your argument fails to recognize:
1)CAL maintains a 53% ownership stake in ExpressJet (dba. Continental Express). Given ExpressJet's recent profit, and the likelyhood of future profits, there's tremendous value in that entity that can be sold to increase liquidity. In reality, CAL is waiting to sell that at a higher level.

2)Chealsea catering. While the value of this entity is not tremendous, the severing of the costs associated with Chelsea, might be the greater benefit here.

Given these two assets, I'd estimate that CO has sufficient liquidity to continue to operate.
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[/blockquote]

Good points, flyhigh. I'm not familiar with Chealsea catering, so I can't comment on that. How much did CAL get for selling 47% stake in ExpressJet? I'll assume that it's not worth as much now as when it was sold, but it'd still raise a decent chunk of cash.
I'm not privy to any airline management's thoughts, but it does look like everyone is tapping out all of their lines of credit. Unless we have a great summer travel season, I'd expect to see at least one major file for chap 11 by the fall.

 

[mga707]

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On 1/19/2003 5:06:43 PM RV4 wrote:

If "Cost is King" to the customer, they need give up some of that advertising.

Where is the Southwest Airlines arena?
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I think it's located at every televised NFL game.
I'm sure WN didn't get to be an official sponsor of said league just on their good looks...
Now, as to whether that approach to advertising is more cost effective than slapping one's name on a stadium/arena is another question.

 

[FA Mikey]

AA says Southwest was the other interested party in the Dallas stadium naming rights.

 

[RV4]

[BR][BR][BR][BR]
[BLOCKQUOTE][BR]----------------[BR]On 1/20/2003 8:30:56 AM FA Mikey wrote: [BR][BR]AA says Southwest was the other interested party in the Dallas stadium naming rights.----------------[/BLOCKQUOTE][BR][BR]Who is "AA"? And when and where did they say this?[BR][BR]Are you saying that AA spent this money first to prevent Southwest from having this expense? If AA would allow them to commit to such expenses instead of trying to control the World, they might be able to compete. Did AA also hear that Southwest was planning to remove seats from aircraft and then charge business passengers more for the comfort? No wonder we have higher cost than them, all they have to do is show interest and AA will write a check?[BR][BR]Maybe Southwest is still interested and AA could give them some cost increases instead of just cutting their own.[BR][BR]Why didn't we buy a blimp first also?

 

[j7915]

[blockquote]----------------On 1/20/2003 845 AM RV4 wrote:




[BLOCKQUOTE]
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On 1/20/2003 8:30:56 AM FA Mikey wrote:

AA says Southwest was the other interested party in the Dallas stadium naming rights.----------------[/BLOCKQUOTE]

Who is "AA"? And when and where did they say this?

Are you saying that AA spent this money first to prevent Southwest from having this expense? If AA would allow them to commit to such expenses instead of trying to control the World, they might be able to compete. Did AA also hear that Southwest was planning to remove seats from aircraft and then charge business passengers more for the comfort? No wonder we have higher cost than them, all they have to do is show interest and AA will write a check?

Maybe Southwest is still interested and AA could give them some cost increases instead of just cutting their own.

Why didn't we buy a blimp first also?----------------[/blockquote]

RV4 have you flown lately? The capacity removed for "more room in coach" was flying around empty anyway. If AA replaces all those seats now, there will not be more passengers, but there also will not be any differentiation between SWA's cattle cars and AA. The folks who charged more, or restricted the extra space was UAL, and I don't think it made them any friends with their coach passengers.
Comparing SWA vs AA "rule the world", AA is an international carrier. I have no doubt that if AA converted to the discount format, flew only one size airplane only between points that generate enough passengers to fill that airplane, SWA would have a fight on their hands. Maybe that is the answer, let others take over the international flying

 

[FA Mikey]

Who is "AA"? And when and where did they say this?

Jane Allen did in her reasoning as to why AA named the arena's.

 

[AAmech]

WN is also a sponser of NHL games, which by the way are played in a venue called the American Airlines Center. Thats the beauty of the deal. You have your competitors paying to put your logos and name on TV. If the situation was reversed and AA was a television sponser of pro sports in the SWA Center, everyone would be lauding the marketing prowness of the Low-Cost Giant!! It would be considered pure genius!!!

 

[bagsmasher]

WingNaPrayer writes:
"AA in BK by June.....August at the latest "



With a dancing banana behind it? WingNa, won't all that stock you own be worthless then? How about all those frequent flyer miles you get while traveling 1.8 million miles per year? Also how do you get that cheap DSL to follow you wherever you go? You seem to always be on these boards. Why don't you just come clean and tell us all who you really are, because who you pretend to be doesn't add up.

 

[MiAAmi]

I think the Fat Lady has already sung! Investers have already lost confidence in AMR, Losses continue. Get ready to meet your Bankruptcy Judge.

 

[AAquila]

I think we can expect very bad news next week on exactly how much money the company is losing per day. My guess around 10 million per day. And bankruptcy by summer. Just a guess
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[blockquote]
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On 1/26/2003 1009 AM MiAAmi wrote:

I think the Fat Lady has already sung! Investers have already lost confidence in AMR, Losses continue. Get ready to meet your Bankruptcy Judge.
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[/blockquote]
Hey MiAAmi,

You don't ask a question in a thread and then answer it. Are you really that desperate to continue a meaningless thread?

 

[MiAAmi]

Sorry didn't mean to drag this thread on. The original post was before they announced 4th quarter results. And this week is the first time that we have heard anything serious about bankruptcy. I will sign off on this thread.