Aa

[a320drivr]

Possible Cash Crunch Coming at American

5/5/2005
​

Despite a current cash balance of some $3.5 billion, American Airlines CFO James Beer told pilots he’s worried about future capital and spending requirements at the world’s largest airline. Beer told pilots recently the carrier needs to generate $6 billion by 2007 to cover these debts.



Today’s Dallas Morning News quoted Beer about his concerns. "Given the large increase in fuel costs this year, we will need to either raise significant additional debt and/or consume some of our cash balance," Mr. Beer's report said. "However, with over $20 billion in debt today, we have few remaining assets that can be mortgaged to raise cash." American also needs to find $700 million in cuts to meet its 2005 financial plan. The airline hasn't signaled whether more layoffs are coming.


Any comments?

 

[goofyleftwich]

maybe it is time to raise ticket prices..........duh

 

[ComeOnSkip]

maybe it is time to raise ticket prices..........duh

Another pilot genius that has it all figured out.

 

[AMRCostUnit]

Good thing the house is on the market...


Unit
Downsizing from ORD to MIA

 

[AA717driver]

Oh, I'm sure it could ALL be solved if only the A and B plans were transitioned to a Defined Contribution plan... I'm sure the conversion would come out in the pilot's favor, too.

Hey, Gerard! Bet you wish you'd filed when you had the chance!

TC
Watching my friend's recall slipping further and further into the future...

 

[aa73]

Oh, I'm sure it could ALL be solved if only the A and B plans were transitioned to a Defined Contribution plan... I'm sure the conversion would come out in the pilot's favor, too.

Hey, Gerard! Bet you wish you'd filed when you had the chance!

TC
Watching my friend's recall slipping further and further into the future...

TC-

Your friends will be recalled quicker than you think.

Regards,
73

 

[CSY Mon]

Your friends will be recalled quicker than you think.

How so?

 

[Neubyfly]

TC-

Your friends will be recalled quicker than you think.

Regards,
73

Not true

 

[aa73]

Recalls will start this fall or by spring at the latest. We'll have everyone back (who accept recall) by 3-4 years. It's turning around, folks.

73

 

[JohnDoe]

quote:
" It's turning around, folks. "



Oh really........??

Airlines still losing hundreds of millions of dollars, oil still in the $50 per barrel range, two still in bankrupcy with another looking close.........need I go on?



Are you Kit Darby in disguise??

 

[Neubyfly]

Recalls will start this fall or by spring at the latest. We'll have everyone back (who accept recall) by 3-4 years. It's turning around, folks.

73

Please give us the source of your information.

 

[goofyleftwich]

hey skip..........lick my b@lls bro!

 

[FlyBoeingJets]

This news release is prep for another round of labor cuts. They will beg, plead, cajole, threaten, and make growth promises for another round of cuts.

 

[80drvr]

Please give us the source of your information.

from APA BOD wrap: ....to discuss the latest update on the 401K carve out and associated negotiating strategy. At the conclusion of the Pension Committee's remarks and discussion, we continued in closed session to discuss domicile issues. During this discussion, APA President CA Ralph Hunter received a phone call, which he later addressed in a brief open session so that we could release the information. He was called by CA Hetterman to relay to the Board (from Mr. Redding) that the company is short of 1200 hours to cover June flying on the S80, and possibly the 757/767-I. The company is planning on requesting for volunteers from the S80 fleet to defer their June vacation. In addition, they wanted to know if the BOD would be willing to allow flex up to 83 hours for S80 CA/FO, and 75/76 Intl CA/FO in June and July. The Board's position was that unless the discussion included recalls, we were not interested. CA Hetterman has indicated it is not likely the company would be willing to recall, but we are awaiting a call from Redding to confirm their position.

After such a bombshell of a phone call, the Board was ready to adjourn for the week. We agreed to end our domicile issues discussion there, and come out of Executive Session (go open). The makers of the 3 remaining resolutions offered to postpone their resolutions until the next Board meeting and we adjourned at about 2:45PM.

 

[AA717driver]

Good for APA (on this issue, at least). Roy Everett just sent a bunch of people out the door KNOWING they would be short this summer.

AMR management is playing their same old games. Furlough and depend on the greed of the pilot group to bail them out.

BITE ME ROY!

TC

 

[80drvr]

Good for APA (on this issue, at least). Roy Everett just sent a bunch of people out the door KNOWING they would be short this summer.

AMR management is playing their same old games. Furlough and depend on the greed of the pilot group to bail them out.

BITE ME ROY!

TC

Historically, the company doesn't recall until they've completely backed themselves in a corner. That in my opinion, is what drives all the recent mgmt talk about sick time. They'd prefer to blame the pilots than admit they got the manning wrong.

 

[BigMotorToter]

Good for APA (on this issue, at least). Roy Everett just sent a bunch of people out the door KNOWING they would be short this summer.

AMR management is playing their same old games. Furlough and depend on the greed of the pilot group to bail them out.

BITE ME ROY!

TC

Well if I had a pilot group like the one's at AA, then depending on the greed of the pilots sounds like a sure bet. Sounds like AMR management knows their pilot group very well.

 

[C-150ETOPS]

Well if I had a pilot group like the one's at AA, then depending on the greed of the pilots sounds like a sure bet. Sounds like AMR management knows their pilot group very well.

Greed would be far more acceptable, and in the end better than the rampant stupidity that is common amongst a rather large portion of our group.

 

[aa73]

You TWA guys are slowly learning AA management's games and tactics. It's been their MO for the past 30 years.

To repeat what 80drvr was saying, they will recall when they are backed into a corner... and that is exactly where they're at right now. They just won't let anyone know it.

To John Doe, yes I realize airlines are still losing money and oil prices are skyrocketing. What you must realize is that airlines can still be ridiculously low on manning, as is AMR's case, and start recalling even if they are losing money. Just look at CAL.

AA is about to have a massive exodus of early retirements "a la Delta", especially as this year comes to a close. And they haven't even touched the A-fund yet.

Recalls are closer than people think.

And if I'm wrong, I 'll gladly admit it. I'd rather be remembered as an optimist anyway.

73

 

[jetexas]

They'd prefer to blame the pilots than admit they got the manning wrong

From the APA hotline.

At the end of the board meeting today APA President CA Ralph Hunter received a phone call which he later addressed in a brief open session so that we could release the information. He wascalled by CA Hettermann to relay to the Board (from Mr. Redding)that the company is short of 1200 hours to cover June flying onthe S80, and possibly the 757/767-I. The company is planning onrequesting for volunteers from the S80 fleet to defer their Junevacation. In addition, they wanted to know if the BOD would bewilling to allow flex up to 83 hours for S80 CA/FO, and 75/76Intl CA/FO in June and July. The Board communicated that unlessthe discussion includes recalls we are not interested. APA hadwarned the company earlier that they should not furlough in Aprilbecause those pilots would be needed to cover the summer flying.Needless to say our advice was not taken. The company claims that Military flying along with an increase in the mortality rate has contributed to a shortage of pilots. CA Hetterman has indicated it is not likely the company would be willing to recall, but we are awaiting a call from Mr. Redding to confirm their position


Blame it on the pilots? Actually, I suppose it's even easier to blame the dead.