American Airlines issuing $1 billion in debt to help cover 2011 costs

[SELCAL checks]

http://www.dallasnews.com/business/airline-industry/20110307-american-airlines-issuing-1-billion-in-debt-to-help-cover-2011-costs.ece

 

[maxblast72]

I am not a professional financial analyst, but that doesn't seem good. Mortgaging route authorities and landing slots/gates?

 

[jonjuan]

Shares of American parent AMR Corp. /quotes/comstock/13*!amr/quotes/nls/amr (AMR 6.21, +0.07, +1.14%) rose less than 1%, while those of Delta Air Lines Inc. /quotes/comstock/13*!dal/quotes/nls/dal (DAL 10.01, +0.10, +1.01%) added 0.5% and United Continental Holdings /quotes/comstock/13*!ual/quotes/nls/ual (UAL 22.63, +0.37, +1.66%) gained 1%.

US Airways Group Inc.’s /quotes/comstock/13*!lcc/quotes/nls/lcc (LCC 8.28, -0.01, -0.12%) shares slipped a fraction.

Elsewhere, rising ticket prices have helped to offset the spike in jet-fuel prices.

SkyWest Inc. /quotes/comstock/15*!skyw/quotes/nls/skyw (SKYW 16.48, +0.57, +3.55%) was upgraded to buy from hold at Deutsche Bank because of better-than-expected revenue growth due to several successful fare hikes.

Shares of SkyWest rose 3.4%.

How nice for them uke:

 

[jws717]

I am afraid American will need to do the Chapter 11 wash and rinse, before they can turn a profit. The debt load is just too high. Not to mention the cost of MD-80 replacements.

 

[jonjuan]

I am afraid American will need to do the Chapter 11 wash and rinse, before they can turn a profit. The debt load is just too high. Not to mention the cost of MD-80 replacements.

They'll go after the pensions first. uke:

 

[General Lee]

I think AA is still paying down debt, with everyone else profitable last year, and AA only barely profitable, supposedly. Maybe they are borrowing some money to continue the consolidation trend?


Bye Bye--General Lee

 

[BLUE BAYOU]

With oil almost hitting $107/barrel today, I think we'll all be heading down this road sooner or later. There's stuff to be said about the Middle East unrest-- but last time oil went to near $150/brl it was because of speculative buying, much to our chagrin-- it's happening again...

 

[Yuppyguppy]

you first sonny

 

[clippyrip]

Maybe they are borrowing some money to continue the consolidation trend?

Loading their guns to acquire Alaska Air?

 

[Flyby1206]

Refinancing debt. They had $2.4bil in debt payments due in 2011, and the market is at a good spot for refinancing. Nothing to see here.

 

[sniper]

http://www.dallasnews.com/business/...-billion-in-debt-to-help-cover-2011-costs.ece

Take the cash from Eagle spin off and this $$$$ and buy jetblue and offer early retirements and new contract.

Its coming...Eagle will be flying 190s,,,great IPO stock price...Eagle will be given up flow up so half of the jetblue pilots merged with american and the other half with Eagle...Mckastlin rules will take place...sorry for the spelling......

why not think about it

 

[Flyby1206]

Take the cash from Eagle spin off and this $$$$ and buy jetblue and offer early retirements and new contract.

Dude, we're talking about the IPO of Eagle, not the IPO of Google.

 

[AA717driver]

Dude, we're talking about the IPO of Eagle, not the IPO of Google.

LMAO! Great response. :beer:

Yeah, what cash?

TC

 

[sniper]

Dude, we're talking about the IPO of Eagle, not the IPO of Google.

With 700s, 190s and some 145s and some long term capacity purchase agreements(more than 10 years with oil around 110) with AMR....Eagle will be close to skywest stock price in the market...$11 per share or higher.....

It is a great plan if AMR can put it together...

just my opinion, thats all.

 

[Yuppyguppy]

Aren't the pilots 5 years into an open contract?

 

[brokedash]

Eagle has to be a drain on AMR due to its mass fleet of 50 seat and less jets. Plus with 50 seats going to pasture sooner than later, AMR and the APA will have to bury the hatchet over the scope. I'm not advocating anything larger than Eagle flies now, but the ability to bring more of them on. Maybe this could be accomplished if AMR gives the mainline guys a good deal on 100-125 seat planes, something else AA also needs.

 

[Flyby1206]

AA needs feed. Eagle provides the maximum feed that the APA contract allows. Eagle is not as effective as it could be, but we do what we can with the resources we are allowed to operate. I think AMR's plan is to circumnavigate the APA scope clause and go to companies like Jetblue for feed instead. No need for scope exceptions for JB to feed JFK with E190s and A320s.

And for the record, no I dont think Eagle could/would be spun off to operate something bigger and feed AA in the way JB does.

 

[OCP]

With 700s, 190s and some 145s and some long term capacity purchase agreements(more than 10 years with oil around 110) with AMR....Eagle will be close to skywest stock price in the market...$11 per share or higher.....

It is a great plan if AMR can put it together...

just my opinion, thats all.

Skywest closed over $17 today.

 

[sniper]

Skywest closed over $17 today.

Good for them...you get my point...i hope

 

[nwa747]

Good for them...you get my point...i hope

No I don't. You have no clue how how a company's stock priced is valued. Am I missing the point?