Dallas Morning News: AA Could be Bankrupt in May

 
Old Feb 25, 03, 10:05 pm
  #16  
 
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by lrickets:
Nope, $25 divided 3125 miles comes to .008 per mile which is less than .01 cent.</font>
.01 dollars IS 1 cent, my dear. .008 DOLLARS is 0.8 cents.

After all, 3125 miles at 1 cent each is $31.25. .008 cents per mile would come to $.25, one quarter.

Please get a better calculator to avoid further severe shopping errors...
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Old Feb 25, 03, 10:07 pm
  #17  
 
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by martin33:
.01 dollars IS 1 cent, my dear. .008 DOLLARS is 0.8 cents.

After all, 3125 miles at 1 cent each is $31.25. .008 cents per mile would come to $.25, one quarter.

Please get a better calculator to avoid further severe shopping errors...
</font>
Put this on your calculator 25 / 3125 = .008 which is less than 1 cent. And .008 * 3125 = $25. Basic math here pal.
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Old Feb 25, 03, 10:17 pm
  #18  
 
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well, i just hope the pilots do the right thing here. i am sorry it looks like they will have to take a pay cut, yet some things appear inevitable.

i must say that this year i have noticed a big improvement in how nice the pilots are (re: greeting pax as they enter and deplane).

has anyone else noticed this?

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Old Feb 25, 03, 10:56 pm
  #19  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Plato90s:
Yeah, but the local news outlets in the DFW area has reported bad info before, including the idea that AA is considering rolling back MRTC.</font>
I think this says it all. How many scare-headlines have we seen in the last year from this publication re: AA?



One too many, IMO.
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Old Feb 25, 03, 11:48 pm
  #20  
 
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by lrickets:
Put this on your calculator 25 / 3125 = .008 which is less than 1 cent. And .008 * 3125 = $25. Basic math here pal.</font>
you're the one who said .008 cents and started the whole error-ridden calculation.

several posts ago I corrected your number to .8 cents, which is indeed less than 1 cent, as I said. Not less than .01 cents, as you said. Go back and re-read your original error...

now, .8 cents, or .008 dollars, is ABOUT 20% discount to the normal "cashable value" of a mile, which is one cent.


<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by lrickets:
I went and look up on AA regarding redeeming the miles. You can buy gift certificates and use your AA miles to pay for it. AA will let you have $25 for every 3125 AA miles toward your vacation. That's less than .008 cent per mile. What gives? Is there anyway we can convert AA miles back to hotel points, etc.?</font>


[This message has been edited by martin33 (edited 02-25-2003).]
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Old Feb 25, 03, 11:54 pm
  #21  
 
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Who's on first? You did this, I did not. Mom! Jeez, could we get back to the doom & gloom, already? Moles & trolls, moles & trolls, we're never gonna make it, Gulliver's too big.

OK, more bad news from the media, whom we all know has the real crystal ball. Whatever.
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Old Feb 26, 03, 12:17 am
  #22  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by freeupgrade:
well, i just hope the pilots do the right thing here. i am sorry it looks like they will have to take a pay cut, yet some things appear inevitable.

i must say that this year i have noticed a big improvement in how nice the pilots are (re: greeting pax as they enter and deplane).

has anyone else noticed this?

</font>
Definitely, and, as almost always the FA's domestic. Now, if the S.A. ones could get a clue it would really be nice but they seem to operate in a different world. Not all, but too many of them.
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Old Feb 26, 03, 12:19 am
  #23  
 
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Listen, you all need to get back to the original thread - the problem is that AA is (maybe) going into Chapter 11 sometime this year if the pilots and unions don't wake up (the last thing AA need now is a war-induced drop in travel and forward bookings, they'd spiral into a death roll towards Ch 11 if that happens).

We are all telling Qantas to wait to buy AA out of Ch 11, rather than before it goes in(much cheaper that way!), so at least when we do buy it, then you'll be likely to keep your points!

Just look at how:

* Our Qantas Clubs are self-service bars after opening time (rather than coupon based at AC). Ask any colleague who has travelled "Down Under!"
* We are friendly - just read the posts on the Qantas forum
* Our dollar is strengthening against yours
* How we are so far away from the threat of major terrorist attacks
* I love America (hi to my cousins in LAX, SFO, SEA & GEG!)
* Heh, we even speak English!

Have a great day

(Edited to correct UBB)


[This message has been edited by QF WP (edited 02-25-2003).]
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Old Feb 26, 03, 12:23 am
  #24  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by QF WP:
Listen, you all need to get back to the original thread - the problem is that AA is (maybe) going into Chapter 11 sometime this year if the pilots and unions don't wake up (the last thing AA need now is a war-induced drop in travel and forward bookings, they'd spiral into a death roll towards Ch 11 if that happens).

</font>
The article was released BY the pilots union. Seems they are predicting doom and gloom before AMR is....so you gotta wonder why? Is this their way of posturing and saying "yes, we'll deal, cuz we don't want to be UA" or what?
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Old Feb 26, 03, 12:31 am
  #25  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by DFWRaider:
Didn't realize it could be coming this soon:

http://www.dallasnews.com/latestnews...zamr.98f3.html
</font>
Do you really believe everything in the DMN?? They were reporting removal of MRTC over one year ago, etc. This is what happens when a city so large has ONE newspaper "in charge" of the "news." Bring back the Dallas Times-Herald!
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Old Feb 26, 03, 1:12 am
  #26  
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AA might be able to salvage things with major union concessions, but I think a war starting in the next month or two would pretty much guarantee that AA ended up in at least chapter 11.

International travel fell off by 40% during the last Gulf war, and domestic by 5-10%. That was in times when most people weren't already in a panic about terrorism.

AA and the other majors can't handle a blow like that. They're getting killed domestically by the low cost carriers on all but a handful of lucrative routes; international is probably all the majors have...

d
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Old Feb 26, 03, 1:26 am
  #27  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Doppy:
AA might be able to salvage things with major union concessions, but I think a war starting in the next month or two would pretty much guarantee that AA ended up in at least chapter 11.

International travel fell off by 40% during the last Gulf war, and domestic by 5-10%. That was in times when most people weren't already in a panic about terrorism.

AA and the other majors can't handle a blow like that. They're getting killed domestically by the low cost carriers on all but a handful of lucrative routes; international is probably all the majors have...

d
</font>
All true, but Q1 is always bad for airlines. A successfuel (sic on purpose) campaign in Iraq done very quickly and hopefully with success against Al-Quaida, et al., will finally convince Mr. and Mrs. Jones from Omaha to finally take that trip to Europe they've been dreaming of....???
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Old Feb 26, 03, 8:56 am
  #28  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by LLZ:
The article was released BY the pilots union. Seems they are predicting doom and gloom before AMR is....so you gotta wonder why? Is this their way of posturing and saying "yes, we'll deal, cuz we don't want to be UA" or what?</font>
The pilots' union is just posturing for their members.

Read carefully, and you'd see what they did was take AA's reported "losses" and compare that to the cash reserve. Then they extrapolate the # of days till bankruptcy.

Of course, if you look at AMR's SEC filings, they report far larger "losses" than cash outflow. So AMR could be losing $5M a day, including depreciation, etc... but only burning $3M of cash per day.
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Old Feb 26, 03, 9:11 am
  #29  
 
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by lrickets:
I went and look up on AA regarding redeeming the miles. You can buy gift certificates and use your AA miles to pay for it. AA will let you have $25 for every 3125 AA miles toward your vacation. That's less than .008 cent per mile. What gives? Is there anyway we can convert AA miles back to hotel points, etc.?</font>
Isn't the second flaw in your argument that if AA goes under such that AA miles are worthless, so does AA Vacations, hence your gift "vacation" certificates would also be useless ?

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Old Feb 26, 03, 9:21 am
  #30  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Plato90s:
The pilots' union is just posturing for their members.

Read carefully, and you'd see what they did was take AA's reported "losses" and compare that to the cash reserve. Then they extrapolate the # of days till bankruptcy.

Of course, if you look at AMR's SEC filings, they report far larger "losses" than cash outflow. So AMR could be losing $5M a day, including depreciation, etc... but only burning $3M of cash per day.
</font>
APA is NOT posturing. AMR has a boatload of debt coming due later this year; if that debt cannot be refinanced, a Chapter 11 filing would be necessary in order to prevent the company's COH from falling to dangerous levels.


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