AMR Corporation Reports Q4 2010 Net Loss of $97 Million

[RedDogC130]

http://finance.yahoo.com/news/AMR-Corporation-Reports-Q4-prnews-1348471080.html?x=0&.v=1

 

[General Lee]

There are some interesting things I see with the loss, and both are interesting. Here is the first "non cash" charge that is "interesting"----(from a Reuter's article)


The fourth-quarter 2010 results include the impact of a $28 million noncash charge related to the lower value of Colombian routes because of a new law that makes them more accessible to other airlines.


So, if SWA enters any more "exclusive" routes that AA flies within the US, can they also lower their values and then throw on some more noncash charges? Sure makes the overall picture look WORSE....?

And then there is this:


American Orders Two New Boeing 777-300ER Wide-Body Jets
In support of American's global network strategy and to capitalize on international opportunities, the Company announced today it has entered into an agreement with Boeing to acquire two Boeing 777-300ERs. The two aircraft are expected to be delivered in late 2012.




It just seems a bit weird, but it seems to me they don't want to really make a profit? ALL of their employee unions are up for new contracts, and they never got their costs down in a BK. HMMMM. Amazing.



Bye Bye---General Lee

 

[Flyby1206]

The fourth-quarter 2010 results include the impact of a $28 million noncash charge related to the lower value of Colombian routes because of a new law that makes them more accessible to other airlines.


So, if SWA enters any more "exclusive" routes that AA flies within the US, can they also lower their values and then throw on some more noncash charges? Sure makes the overall picture look WORSE....?

Thats Colombia, South America.... not Columbia, South Carolina.

US-Colombia agree to Open Skies Pact

 

[General Lee]

Thats Colombia, South America.... not Columbia, South Carolina.

US-Colombia agree to Open Skies Pact

YOU THINK?????? I knew that. But open skies pacts like that open up all the time. I am comparing that to ANY route that AA might have exclusivity on, and then SWA or Spirit, or someone else starts it, does that mean AA will throw a one time charge complaining it hurts them? Come on, those one time charges are made to make the situation SEEM worse. Other airlines do that all the time when it is contract time. Thanks for the obvious clarification.


Bye Bye---General Lee

 

[BLUE BAYOU]

Forgive an airline for actually trying to earn a living the hard way, without hitting the reset button (CH11) like the General's and other major airlines have in this last decade...

 

[PuffDriver]

Forgive an airline for actually trying to earn a living the hard way, without hitting the reset button (CH11) like the General's and other major airlines have in this last decade...

Yeah, forgive an airline which got a bunch of slots in the "unregulated" free market at JFK.

...and DCA, yadda, yadda, yadda. Level playing fields and all, right?

Next incoherent blather please. Jblu pilots crack me up with their version of utopia. Next thing you know, they'll take credit for inventing the jumpseat.

 

[ironspud]

This is excellent news. Excellent!

 

[Snapperhead]

A dying empire.

 

[nimtz]

Forgive an airline for actually trying to earn a living the hard way, without hitting the reset button (CH11) like the General's and other major airlines have in this last decade...

What was that EMB-190 rate when JB introduced them in 2005? Noted u base leading no fly hypocyrtic...

 

[GuppyWN]

I don't care how you stack the cards - it's GOT to be hard to report a loss with record load factors!

Gup

 

[scoreboardII]

Ding! Winner!

I wager AA becomes an airplaneless airline as soon as the priceline deals solidifies and shows just how much can be made by selling tickets, not selling flights.

This could be interesting...

 

[BILL LUMBERG]

Forgive an airline for actually trying to earn a living the hard way, without hitting the reset button (CH11) like the General's and other major airlines have in this last decade...

Oh Blue....

Ya still got that funnel for your Barger juice still stuck up your 6? What's the matter, still can't get those sweetheart no-interest, no down payment, no maintenance loans loans like VA is getting now....

I wouldn't worry about the major airlines with jets that cross oceans (By the way flying to SJU is not a crossing), I would worry about the competition coming from the left coast.....

But thats just me.....

 

[BILL LUMBERG]

. Jblu pilots crack me up with their version of utopia. Next thing you know, they'll take credit for inventing the jumpseat.

Best FI post of 2011 so far......:beer:

 

[Skippy]

AA could find a way to lose 400 million after winning 300 million in a lottery.

"well, in anticipation of the winning, we decided to splurge a little"..

but what if you didnt win the lottery?.......

"we, always win the lottery" have you seen what our pilots make and how long we've delayed their conttract."

 

[Draginass]

Don't forget the 10s of millions of dollars in bonus' that are due to be paid out to AA executives soon.

 

[ACL65PILOT]

YOU THINK?????? I knew that. But open skies pacts like that open up all the time. I am comparing that to ANY route that AA might have exclusivity on, and then SWA or Spirit, or someone else starts it, does that mean AA will throw a one time charge complaining it hurts them? Come on, those one time charges are made to make the situation SEEM worse. Other airlines do that all the time when it is contract time. Thanks for the obvious clarification.


Bye Bye---General Lee

Many airlines use their route authorities as an asset. These assets are then used to acquire credit. DAL did this with the old NWA Transpac authorities. We too out a few billion in loans on them.

Having a (non cash)good will write off of the value for a given route, will only effect their ability to borrow against it. All companies will have non-cash good will writeoffs from time to time.

If one remembers DAL wrote off about 8 billion in good will prior to the NWA merger. Maybe AMR is cleaning up some items on their balance sheet prior to a acquisition or merger announcement to expedite the process once it is public.......

 

[AA717driver]

AA is a dump. I worked for TWA during the dark days of Icahn's reign and this place is worse in some respects.

At TWA during Icahn, I NEVER worried about the mechanical condition of the aircraft. Not so now.

If this management put half as much time into RUNNING the airline as they do trying NOT to run an airline, AA would be where it was in 1990.

I wouldn't take AA stock if you gave it to me.

TC

 

[Fubijaakr]

At TWA during Icahn, I NEVER worried about the mechanical condition of the aircraft. Not so now.

That's quite an indictment. Make sure you write up EVERYTHING. Thank you from all of us who ride AA airplanes.

 

[Whataburger]

Is it pretty safe to say that this is a pencil-whipped loss because so many labor groups are in negotiations right now?

 

[WSurf]

Is it pretty safe to say that this is a pencil-whipped loss because so many labor groups are in negotiations right now?

Bingo!!! That should end this thread.... Next Up US Airways!

 

[AA717driver]

Is it pretty safe to say that this is a pencil-whipped loss because so many labor groups are in negotiations right now?

I used to think that but I'm not so sure now. This is a bean counter's airline. EVERYTHING is about cost--at the expense of revenue.

The whole JBV/Oneworld thing is about getting a small amount of cash without incurring any cost. You travel from SLC to Berlin and never touch AA metal.

AA is a travel agency funded by an airline that they can't get rid of.

TC

 

[macdu]

AA is a travel agency funded by an airline that they can't get rid of.

TC[/QUOTE]

THAT'S THE END OF THE TREAD

 

[bubbers44]

With USair and other airlines making profits it is obvious AA is hiding it's profits during union negotiations. They are maybe paying down debt or something to hide that they can pay more to their employees. AA is good at that so that 97 million loss probably isn't really so in real life. Of course union negotiations are expected to go on for years since they can't strike now with the RLA holding everybody to a standstill.

 

[BoilerUP]

A look at AA's 10-Q shoes they were profitable operationally in Q4'10 to the tune of $68M...but the loss was caused in part to $201M in interest expense.

I'm guessing if AMR had taken a trip through Ch. 11 like so many other airlines have this past decade, and got a judge to help them beat up on creditors, that their interest expense would have been a bit lower...