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AAdvantage Program to used as collateral for gov't loan

AAdvantage Program to used as collateral for gov't loan

Old May 22, 20, 4:07 am
  #1  
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Join Date: Nov 2009
Location: Austin
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AAdvantage Program to used as collateral for gov't loan

AA has stated that is will be using the value of the AAdvantage program as collateral for the government loans it will be receiving. Value now stated at $18B to $30B.

From: https://www.forbes.com/sites/willhor.../#294f9eeb78f8

" The AAdvantage program is considered collateral for the government debt, CFO Derek Kerr told the Wolfe Global Transportation Conference.AAdvantage can more than cover the loan.

We have an appraised value of that program anywhere from $18 billion to $30 billion, Kerr said. After using AAdvantage for the government loan, American intends to have the capabilities to do other things with that. '

It's good to know all those miles we have banked are actually worth something
teemuflyer is offline  
Old May 22, 20, 5:42 am
  #2  
 
Join Date: Nov 2015
Location: DFW
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That's all good and fine until they default on the loan and the collateral is "called."
Mynoles1 is offline  
Old May 22, 20, 8:27 am
  #3  
 
Join Date: Jun 2013
Location: Roswell, GA
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may be AA will let me apply for a government loan using my miles... .. if I default the government can keep my miles...
fotographer is offline  
Old May 23, 20, 9:03 am
  #4  
 
Join Date: Nov 2011
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Can put e500s/stickers up for collateral too.
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footballfanatic is offline  
Old May 23, 20, 9:15 am
  #5  
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exp's get 3.5% APR!!
MasterPlanner likes this.
enviroian is online now  
Old May 23, 20, 11:10 am
  #6  
 
Join Date: Mar 2014
Programs: Choice Hotels
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I havelittle knowledge of corporate finance, but aren't AAdvantage points a liability and not an asset for AA?
thunderdeacon is offline  
Old May 23, 20, 11:25 am
  #7  
 
Join Date: Nov 2011
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Its not the points, its the program
footballfanatic is offline  
Old May 23, 20, 2:31 pm
  #8  
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Maybe if the government forecloses they will need to make award travel available on AF1?
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sbrower is offline  

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