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American and Eagle (AMR)

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Market capitalization has nothing to do with how much or how little cash a company has on hand. It has everything to do with how much investors believe the company is worth.

Market cap is simply the price of the stock multiplied by the number of outstanding shares. The price of the stock takes into account many factors, one of which is actual assets. However, the stock price is affected by many other variables, including expected future profits (or lack of same), earnings forecasts, expected growth, and also some plain gut feelings.

This explains why AMR has tons of cash on hand but still has a depressed stock price: the losses are expected to continue for months, and this is reflected in the stock price.

I could also ask you to explain how some dot-com companies that had never shown a profit and were burning through millions of dollars a month could have market caps of several billion dollars, but I'm too nice to do that!
 
ALCOHOLIC said:
I am a feb. 2000 hire on furlough at AA.

I was hired by AA in Aug 2000 and have about 600 working FOs below me. How can you be on furlough with that DOH? Are you a TWA feb 2000 DOH pilot?
 
He must be a former TWA guy like myself. I have a DOH at TWA of Sep of 99, but find myself furloughed because of my April 01 DOH thanks to the wonderful seniority list integration.
 
1. Market Cap, (I speak as a Finance MBA) is totally unrelated to balance sheet. It is an indication of the markets view of the earnings potential of the stock.

2. Like it or not, the majors are in this order with regard to financial strength:
SWA,DAL,AMR,NWA,ATA,CAL,UAL,AAA ----- Who is losing money and who is
making it now is meaningless in the short term, this is self evident it the fact
SWA's stock is being hammered as hard as AMR, etc...


3. Frontier & Jet Blue are not majors

4. AMR has close to 3 billion in cash and convertable assets, and 6 billion in unencumbered aircraft, more than any other airline (including SWA).

AMR is here to stay.....hang tight, they will hire again.....with 13000+ pilots on one seniority list, retirements alone will take care of that!
 
bayoubandit said:
I'm a furloughed June '01 AA DOH. It wasn't much fun losing 2300 numbers in a day. I know how you guys feel.


I know it hurts, but think of this. You did loose 2300 spots. That is almost down to 2100. See you just gained 200. TWA brought somewhere around about 140 planes afrer AA gotr rid of the 9's,717(stupid) and the 767 200's. That is barely enough pilots to do the flying with AA's work rules. Remember instructors and management are in the 2100 left. Next year over a hundered more will be gone. If AA does not shrink anymore, you are in a better position than you would be if AA did not buy TWA. Remember you were hired because of expected growth. I do not think there will be much growth for awhile. I am furloughed also so I know how you feel, but look at the big picture. The big picture being furloughed blows.
 
ALCOHOLIC,

I don't mean to be a jerk, but shouldn't BAYOUBANDIT expect to benefit from AA buying TWA? I mean, if I'm hired by a company that buys another company, shouldn't that benefit me as an employee?

Did BAYOUBANDIT have an application on file with TWA? Did he want to work there?

Being furloughed sucks, but telling BAYOUBANDIT that he should be glad that almost 2,300 TWA guys took up spots in front of him on the AA list without his consent is just rude.

The problem AA had after 9/11 was excess capacity, as did every other major. Unfortunately, AA now had to deal with both AA and TWA capacity. Using two seniority lists, AA furloughed what they could.

Now that the seniority lists are combined, every TWA pilot must be recalled before someone in BAYOUBANDIT's class is recalled. I think that the seniority integration was very favorable to TWA guys, in that every one of them is senior to an AA guy hired in April 2001.

As for airplanes and routes, welcome to AMR. We bought two west-coast airlines (Air Cal and Reno Air) and still do not fly any SEA-LAX routes. Expect to see STL dwindle down and in five years disappear as a pilot base.

Expect to see numerous fights with the "new" feeders in STL, as AMR tries to use them to avoid scope and ASM clauses.

Bottom line: in 2007, expect STL as an Eagle RJ hub, and nothing else. The TWA and AA pilots will be fighting over the same amount of mainline jobs that we have now.
 
EXCUSE ME

Pilot 141,

Do you not think out friend and many other Reall AA pilots would be fourlouged if not for the former TWA. I think I can find 209 pilots glad that single carrier was announced. They would still be on the street if it were not for TWA. They were not needed but after single carrier was ruled they had to come back because they were senior to the twa pilots and it was cheaper to bring them back to the AA side rather than furlough more TWA guys and have the 209 go through a full TWA school. By the way, TWA has left 103 MD80's many of them new. The 757's will be here until at least 2005. The 767's are being replaced next year with new ones. I am sorry our friend is furloughed. I did not have an app in with AA.
 
pilot141 said:
I think that the seniority integration was very favorable to TWA guys, in that every one of them is senior to an AA guy hired in April 2001.

Now, come on....considering that every TW guy senior to that April 2001 AA guy WAS INDEED hired PRIOR to April 2001 (some as early as 1986 who lost 15 years)...that's not called Favorable, that's called FAIR (and those guys who lost the 15 years would call it something else, I'm sure)!! :eek:


FJ
 

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