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AA May Need Funding.  
User currently offlineXbraniffone From United States of America, joined Feb 2006, 80 posts, RR: 0
Posted (7 years 6 months 1 week 1 day 10 hours ago) and read 5471 times:

http://money.cnn.com/2007/02/23/news...t/index.htm?postversion=2007022312

Looks like they may need some funding to upgrade the fleet


DC3 8 9 10, 1011, BAC111, 707 720 727 737 747 757 767 777 A319 320 330 340
23 replies: All unread, jump to last
 
User currently offlineSEPilot From United States of America, joined Dec 2006, 6897 posts, RR: 46
Reply 1, posted (7 years 6 months 1 week 1 day 9 hours ago) and read 5401 times:

Being the only legacy carrier not to have traipsed through bankruptcy since 9/11, this is hardly surprising. I sincerely hope they can manage it; but I offer one suggestion: Don't ask Warren Buffett for help.


The problem with making things foolproof is that fools are so doggone ingenious...Dan Keebler
User currently offlineCaptaink From Mexico, joined May 2001, 5109 posts, RR: 12
Reply 2, posted (7 years 6 months 1 week 1 day 9 hours ago) and read 5385 times:

Quoting SEPilot (Reply 1):
Being the only legacy carrier not to have traipsed through bankruptcy since 9/11,

Well since 9/11 CO has not filed for bankruptcy either. But AA has never filed for bankruptcy thorughout its existence.. Isn't that correct?

I echo your sentiments, i hope they manage it.



There is something special about planes....
User currently offlineSEPilot From United States of America, joined Dec 2006, 6897 posts, RR: 46
Reply 3, posted (7 years 6 months 1 week 1 day 9 hours ago) and read 5306 times:

Quoting Captaink (Reply 2):
Well since 9/11 CO has not filed for bankruptcy either.

You are correct; I knew that CO had gone through bankruptcy (many thanks Frank Lorenzo) but forgot that they haven't since 9/11. Thanks for the correction, and apologies to CO.



The problem with making things foolproof is that fools are so doggone ingenious...Dan Keebler
User currently offlineRipcordd From United States of America, joined Apr 2000, 1160 posts, RR: 1
Reply 4, posted (7 years 6 months 1 week 1 day 9 hours ago) and read 5229 times:

Well this is the order everyone has been looking for did boeing annouce a new 737RS? I would imange that they would order 350 737 RS and be the launch for this plane along with a 787 order of around 75 with options for 400 more

User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 5, posted (7 years 6 months 1 week 1 day 6 hours ago) and read 4914 times:

With the potential of the largest aircraft order in history, I bet you that Boeing will do everything possible to make the replacement of the AA fleet as painless as possible, including backdoor help with financing. It really would be very foolish of them not to do so.


One Nation Under God
User currently offlineXpfg From United States of America, joined Oct 2003, 633 posts, RR: 7
Reply 6, posted (7 years 6 months 1 week 1 day 4 hours ago) and read 4652 times:

This should be interesting.. Boeing can not ignore the needs of a couple of its most important customers. AA SW. AA needs to replace the 300 mad dogs in the fleet and wants to do so with the next generation of aircraft in the 737 sized bracket. SW will not need to make another large order for another couple years but when they do it will be in the 200 to 300 aircraft range. (initial 737-300 replacement) And then another order a few years later for the 737-700 replacement.
My best guess is that AA will exercise the options (i think they still have) on 737-800 aircraft and couple it with an order for 787's. Than put a deposit on early delivery slots for the NGNG 737 or whatever they call it. This way they can begin the process of retiring the eldest MD 80 aircraft and have replacements on order. How many 787 could AA be in the market for? How many A-300, 767 sized aircraft do they need to replace. AA can not wait much longer....


User currently onlineBigGSFO From United States of America, joined Jun 2005, 2920 posts, RR: 6
Reply 7, posted (7 years 6 months 1 week 1 day 4 hours ago) and read 4624 times:

Maybe it's just me, but this press release is coming out right before contract negotiations with the pilots. Coincidence? Hmmmmmm.....

Regardless, the aircraft replacement project needs to start soon.


User currently offlineAA717driver From United States of America, joined Feb 2002, 1566 posts, RR: 13
Reply 8, posted (7 years 6 months 1 week 1 day 3 hours ago) and read 4501 times:

Who can buy aircraft paying out of pocket? AA has indicated they will wait for a new generation 737 or Airbus before embarking on a fleet replacement for the 80.

They are supposedly working on winglets for the 80's. We'll see. TC



FL450, M.85
User currently offlineJAAlbert From United States of America, joined Jan 2006, 1583 posts, RR: 1
Reply 9, posted (7 years 6 months 1 week 1 day 2 hours ago) and read 4339 times:

$16 billion dollars in debt? Man, how does a company ever hope to pay a sum like that off? That's like the debt load of a small country!

User currently offlineKC135TopBoom From United States of America, joined Jan 2005, 12136 posts, RR: 51
Reply 10, posted (7 years 6 months 1 week 1 day 1 hour ago) and read 4281 times:

Quoting BigGSFO (Reply 7):
Maybe it's just me, but this press release is coming out right before contract negotiations with the pilots. Coincidence? Hmmmmmm.....

No, you are right, and the pilots remember how the top AMR excutives got about $250M in bonuses last year. This is going to be a hard contract talk. After the pilots are the machinest and FA unions. I doubt AA will order anything until after these contracts are signed.


User currently offlineColeplane From United States of America, joined Jan 2007, 172 posts, RR: 0
Reply 11, posted (7 years 6 months 1 week 1 day 1 hour ago) and read 4278 times:

Quoting JAAlbert (Reply 9):
$16 billion dollars in debt? Man, how does a company ever hope to pay a sum like that off? That's like the debt load of a small country!

AA will be OK if they can stop the bleeding soon and start turning a profit. But that seems to be the problem doesn't it.



"About a nine on the tension scale there Rupe."
User currently offlineXJET From United States of America, joined Feb 2007, 492 posts, RR: 2
Reply 12, posted (7 years 6 months 1 week 1 day ago) and read 4154 times:

Quoting BigGSFO (Reply 7):
Maybe it's just me, but this press release is coming out right before contract negotiations with the pilots. Coincidence? Hmmmmmm.....

 checkmark 

I don't think this is ever a coincidence! Good call on that.


User currently offlineMadhatter From United Kingdom, joined Jan 2001, 242 posts, RR: 0
Reply 13, posted (7 years 6 months 1 week 1 day ago) and read 4062 times:

Granted $16 billion in debt is one heck of an amount to get rid of but BA has managed to get rid of around £7 billion since 2000 I think? Correct me if Im wrong. Now OK they havent placed an order but they are now in a position this year to finally to do so having removed this huge debt. AA must have some way of overcoming their debt. Are their MD80s owned or leased? Maybe selling them and leasing them back could release quite a bit of equity to allow them to order some replacement aircraft and begin to make inroads on their debt. Another suggestion may be a public offering of new shares in the company though this needs to be assessed carefully and not be made if the shares are already viewed as being below market value. Just two suggestions of maybe increasing funds in the short term to possibly recoup in the long run. A further thing may be to get the stored MD80s out from their desert homes and place them into revenue service (if profit is assured) so that more revenue can be gained this way. Im sure there is quite a few option that can be made.

Madhatter


User currently offlineAAR90 From United States of America, joined Jan 2000, 3471 posts, RR: 47
Reply 14, posted (7 years 6 months 1 week 23 hours ago) and read 3978 times:

Quoting BigGSFO (Reply 7):
Maybe it's just me, but this press release is coming out right before contract negotiations with the pilots.

Negotions began last year. There is nothing new in this "story."

Quoting JAAlbert (Reply 9):
$16 billion dollars in debt? Man, how does a company ever hope to pay a sum like that off? That's like the debt load of a small country!

Used to be $20+ Billion in net debt. Now less than $16 Billion net debt.



*NO CARRIER* -- A Naval Aviator's worst nightmare!
User currently onlineBigGSFO From United States of America, joined Jun 2005, 2920 posts, RR: 6
Reply 15, posted (7 years 6 months 1 week 23 hours ago) and read 3966 times:

Quoting AAR90 (Reply 14):
Negotions began last year. There is nothing new in this "story."

Agreed. However the timing of the press release (not the story itself) is what made me think there was another motive.

Quoting AAR90 (Reply 14):
Used to be $20+ Billion in net debt. Now less than $16 Billion net debt.

I did not realize it was that high. Eliminating $4B is no small task. Good for AA!


User currently offlineRIPCORDD From United States of America, joined Apr 2000, 1160 posts, RR: 1
Reply 16, posted (7 years 6 months 1 week 16 hours ago) and read 3135 times:

Quoting Coleplane (Reply 11):

They have stopped the bleeding and have turned a profit. Also their TUL Base is turning even more profits by doing checks on other airlines MD-80's. Its a catch 22 you have to spend the money for new planes so your gas hogs and can be put down and save you money that way so they must have figured it would save more money to buy new planes


User currently offlineHighFlyer9790 From United States of America, joined Jul 2005, 1241 posts, RR: 0
Reply 17, posted (7 years 6 months 1 week 12 hours ago) and read 2108 times:

Quoting Xpfg (Reply 6):
And then another order a few years later for the 737-700 replacement.

Why would WN replace their -700s so soon?



121
User currently offlineSkyyMaster From , joined Dec 1969, posts, RR:
Reply 18, posted (7 years 6 months 1 week 11 hours ago) and read 2034 times:

Quoting XJET (Reply 12):
Quoting BigGSFO (Reply 7):
Maybe it's just me, but this press release is coming out right before contract negotiations with the pilots. Coincidence? Hmmmmmm.....



I don't think this is ever a coincidence! Good call on that.

I think when it comes to AA dealing with pilots, I agree - nothing is ever by coincidence. If they don't make an amicable settlement next negotiating round, AA is going to see itself losing more lucrative international routes as it did the China award because of the beef by the pilots. They seem to have the most radical union of all the legacies, and it's going to eventually bite them in the ass.


User currently offlineGalapagapop From United States of America, joined Feb 2005, 910 posts, RR: 4
Reply 19, posted (7 years 6 months 1 week 10 hours ago) and read 1737 times:

Quoting JAAlbert (Reply 9):
$16 billion dollars in debt? Man, how does a company ever hope to pay a sum like that off? That's like the debt load of a small country!

Think of it more like the national debt. The balance may real -16bil but it's really not that much, most of it liabilities on pensions, maturing loans and so forth. Day to day AA has been profitable as of late, including loan repayments.


User currently offlineJmc1975 From Israel, joined Sep 2000, 3267 posts, RR: 15
Reply 20, posted (7 years 6 months 1 week 10 hours ago) and read 1707 times:

Quoting Xbraniffone (Thread starter):
AA May Need Funding.

Perhaps this Christmastime, they can have AA bell ringers at all the airports, so that the public can make donations and raise funds for them.



.......
User currently offlineAA1818 From Trinidad and Tobago, joined Feb 2006, 3433 posts, RR: 4
Reply 21, posted (7 years 6 months 1 week 10 hours ago) and read 1707 times:

Don't most airlines require financing for a/c anyways?? Surely not many airlines pay 'cash' for an a/c??!!

Good luck AA and Boeing!! I'm looking for some 787s -8s and -9s and possibly -10Xs (if it#s launched). Also, I know Boeing's 737RS is the obvious replacement, but it'll take a while to replace almost 400 narrowbodies with it, so surely ordering some 737NGs for the time being will be worth while to replace at least some MD80s. A replacement will probbaly be about 8 years away anyways and then it'll take at least 5-6 years to refleet AA so that's a good 13 years of service, and surely there would be some commonality so AA could operate them side by side for a few years. The question is- WHAT WILL REPLACE THE 752s?????

Totally Tropical
AA1818



“The moment you doubt whether you can fly, you cease for ever to be able to do it.” J.M. Barrie (Peter Pan)
User currently onlineBigGSFO From United States of America, joined Jun 2005, 2920 posts, RR: 6
Reply 22, posted (7 years 6 months 1 week 9 hours ago) and read 1615 times:

Quoting AA1818 (Reply 21):
The question is- WHAT WILL REPLACE THE 752s?????

Agreed. Would the 739 make a logical choice? The 757 is such a workhorse and has excellent performance.


User currently offlineAA1818 From Trinidad and Tobago, joined Feb 2006, 3433 posts, RR: 4
Reply 23, posted (7 years 6 months 1 week 3 hours ago) and read 1469 times:

Quoting BigGSFO (Reply 22):
Agreed. Would the 739 make a logical choice? The 757 is such a workhorse and has excellent performance.

The 739 could replace the 752 on some routes. But not routes to the Caribbean where the cargo capacity of the 752s is used to the MAXIMUM. Also AA probably couldn't send the 739s across the pond as efficiently as it can use 752s!!!

Totally Tropical
AA1818



“The moment you doubt whether you can fly, you cease for ever to be able to do it.” J.M. Barrie (Peter Pan)
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