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AMR Corp. $359 Million 3rd Quarter Loss

ACL65PILOT

Well-known member
Joined
Dec 6, 2006
Posts
4,621
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9000+
Why do you think they took out that loan?

DAL is looking at 130 million
 

cybourg10

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May 11, 2006
Posts
481
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How long can this go on?

Forever.

Airlines are just another way for banks to make money. The banks make all the profits by leasing the aircraft out. Anytime an airline gets into financial trouble the banks put pressure on the airline management/BOD to get wage cuts from labor and then after the scare tactics are done the bank "lends" the airline just enough money to stay afloat and keep too much competition in the market. So in the end labor keeps taking cuts, the bank keeps making money every quarter on lease payments, and airline management gets bonuses for keeping labor in line. Meanwhile the company never makes money (making money would give leverage for labor wage increases) and all the profits in the airline sector go to paying off the double digit interest loan payments. The banks run this country.
 

densoo

Well-known member
Joined
Nov 2, 2004
Posts
2,054
Total Time
yes
Forever.

Airlines are just another way for banks to make money. The banks make all the profits by leasing the aircraft out. Anytime an airline gets into financial trouble the banks put pressure on the airline management/BOD to get wage cuts from labor and then after the scare tactics are done the bank "lends" the airline just enough money to stay afloat and keep too much competition in the market. So in the end labor keeps taking cuts, the bank keeps making money every quarter on lease payments, and airline management gets bonuses for keeping labor in line. Meanwhile the company never makes money (making money would give leverage for labor wage increases) and all the profits in the airline sector go to paying off the double digit interest loan payments. The banks run this country.
Shack.
 

Colonel Savage

Southern style...
Joined
Mar 11, 2008
Posts
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Total Time
NoTime
So long as you're "too big to fail".
 

WyoHerkdriver

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Joined
May 7, 2002
Posts
110
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5200
That may not be the case for much longer. AMR has been downsizing for eight years now with no end in sight. It seems that they are determined to shrink to profitability - despite the lack of success to this point.
 
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