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Thread: Good Bye Embraer...

  1. #1
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    Good Bye Embraer...


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    E190 now leaving earlier than planned, from end of the year, now will be gone by the end of this summer.

    This is something Isom has discussed before — "we are ending the era of extraordinary capital expenditures," he said in September — as the major capital investments American made in modernizing its fleet start to wind down.


    “With American’s historic fleet renewal program winding down, the company’s level of capital investment is expected to decline.”

    ~AAG~

    ...the carrier is looking to return capital to the company's shareholders.

    January 23, 2020

    Time to invest in the shareholders.

    Guess AAG is just Warming Up for 2021 and thereafter.

    Nothing New Here...Just facts.

    Tic,Toc....’21+
    Last edited by NoOtPilot; 01-26-2020 at 08:31 AM.

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    The 190 was supposed to be parked by now. Any additional time on property is but a stay of execution. By the way, they're still hiring into it...

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    Maybe they need to sell them earlier, to pay some of American’s debt:

    •American Airlines's total debt last quarter was 34.44 billion.
    •American Airlines's total debt for fiscal years ending December 2014 to 2018 averaged 24.344 billion.
    •American Airlines's operated at median total debt of 24.344 billion from fiscal years ending December 2014 to 2018.
    •Looking back at the last five years, American Airlines's total debt peaked in September 2019 at 34.44 billion.

    American went up in debt $10 billion in 2019!

    "We are fourth of four," Parker said. "There are going to be times when of the four of us, somebody's fourth.”

    “That is far better, Parker said, "the world US Airways is used to {where} we can't pay what others pay because we can't afford it."

    ~Doug Parker~

    It’s time to demand improvements in QOL & pay raises. “IT’S TIME.”

    What in your wallet?
    Last edited by NoOtPilot; 01-26-2020 at 12:17 PM.

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    Parker's strategy was to take on this debt (primarily in the form of aircraft) at a time when he believed there would be time to pay it off during what was supposed to be a long-term 3-7 billion (5 billion avg.) massive profit period. It's the ultimate combination of "chicken" and "kick-the-can". His plan was to stay ride the wave while he could and be close enough to the beach when it died to be able coast to it. Unfortunatly, Parker's profit assumptions didn't pan out to anywhere near his forcasts and that's why they keep taking loans to kick-th-can even longer. They are hoping for time to be their friend now and the wave to last much longer then he anticipated or that historically it ever has. Will it?

    No one knows for sure, but if a recession hits within the next 3 years, AA is certain to be back in Chapter 11. Liquidity minimums will probably be kept around the 7-8 billion range and their profits will be going to pay down debt and try and return some value to shareholders considering the flaccid stock performAAnce. Problem is, their debt is so mountainous any significant hiccup in profits will simply either drag out the inevitable as they'll never get ahead of the curve or if it's severe, their liquidity will drop to a minimum trigger to go for Plan B. I think their last "strategic" bankruptcy trigger was pulled with someing like 5-6 billion in liquidity.
    Last edited by Beagleboy; 01-26-2020 at 12:46 PM.

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    Quote Originally Posted by NoOtPilot View Post

    Guess AAG is just Warming Up for 2021 and thereafter.

    Nothing New Here...Just facts.

    Tic,Toc....’21+
    Woah woah woah. You’ve been saying 2021 for a while now, you can’t just say 2021+ now.

    I say if AA doesn’t declare bankruptcy in 2021 as you’ve been predicting, you get banned. If they do, we rename this place after you.

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    2021 has absolutely nothing to do with BK. Maybe AAG Union Members working under a CBA won’t have to wait that long for Bankruptcy to be filed. Doug Parker has been patiently waiting for quite some time and now that he has positioned the company exactly where he wanted...he will be ready, willing and able to pull the trigger...

    Employees will have to wait when the showdown affecting everyone at the company would come.

    Only Doug Parker knows when is the...
    “D-Day.”

    AAG Management Team have Ice Water in Their Veins!
    And the BOD supports them 100%.

    Let’s not forget these words:
    “Doug Parker Got It Right”
    ~Frank Lorenzo~

    2021+ = 2021 and thereafter
    Last edited by NoOtPilot; 01-29-2020 at 03:15 PM.

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    American’s financial metrics including its costs leave it highly vulnerable and in a position from which no other U.S. airline has successfully emerged.

    Jan. 27, 2020

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