AIP 2.0
08-15-2023, 07:35 AM
#412
Moderator
Joined APC: Sep 2011
Posts: 4,815
Look, I CAN afford a million dollar house, ...
...This is AAL with 30+ billion in debt, legacy pensions, a number of marginally unprofitable hubs and a highly unionized workforce of 130k employees coming up in 2023 to meet DAL pilot payrates. It's ..probably not a good business decision, but it’s been long established that all 3 legacies need to pay the same pilot rates to stay competitive for a number of reasons.
...This is AAL with 30+ billion in debt, legacy pensions, a number of marginally unprofitable hubs and a highly unionized workforce of 130k employees coming up in 2023 to meet DAL pilot payrates. It's ..probably not a good business decision, but it’s been long established that all 3 legacies need to pay the same pilot rates to stay competitive for a number of reasons.
Let’s hope the good times for the airline industry keep rolling!
08-15-2023, 02:23 PM
#414
Line Holder
Joined APC: May 2013
Posts: 99
Thanks wasn’t aware. Do you think UAL is in a much better position than AA? Seems like DAL is in a league of its own.
08-15-2023, 03:07 PM
#416
Gets Weekends Off
Joined APC: Jan 2021
Posts: 1,157
American is on track to paying down 15B debt by 2025 which will reduce its long term debt significantly. United is on track to have around 50B in long term debt by 2027 as they replace and grow their fleet.
If anything happens to the economy past 2027 I can’t even imagine the amount of furloughs that will occur at United. If something happens in the next year or two at least SK can bail out of their huge A/C orders, but he’s making a massive bet. Don’t worry, SK already has a golden parachute set up if the lights get turned off.
Last edited by LAXtoDEN; 08-15-2023 at 03:19 PM.
08-15-2023, 04:00 PM
#417
Gets Weekends Off
Joined APC: Oct 2015
Position: Gear slinger
Posts: 2,961
Kirby is spending like a drunken sailor at a discount brothel…United was so under gauged and weak domestically after decades of neglect, he didn’t really have a choice because without connectivity UALs international network would be a bridge to nowhere. All of Boeings woes created a fire sale on aircraft which can be used for growth (whenever they end up being delivered) or replacement for older less fuel efficient aircraft. Time will tell how well UAL and Kirby’s master plan weathers the next economic downturn and how big of a hangover happens after this bender but it has the potential to be a real doozy if 300 aircraft worth of growth doesn’t materialize as planned.
08-15-2023, 06:21 PM
#418
Gets Weekends Off
Joined APC: Mar 2014
Posts: 3,223
Kirby is spending like a drunken sailor at a discount brothel…United was so under gauged and weak domestically after decades of neglect, he didn’t really have a choice because without connectivity UALs international network would be a bridge to nowhere. All of Boeings woes created a fire sale on aircraft which can be used for growth (whenever they end up being delivered) or replacement for older less fuel efficient aircraft. Time will tell how well UAL and Kirby’s master plan weathers the next economic downturn and how big of a hangover happens after this bender but it has the potential to be a real doozy if 300 aircraft worth of growth doesn’t materialize as planned.
Kirby is buying yesterdays aircraft at newly inflated prices along with crazy interest rates
AA bought the previous gen a/c at 2012 prices and 2013-2020 interest rates
AA timed it almost perfectly, by the time the large narrowbody fleet comes up for mass renewal again, the next gen a/c will be out (2035-2040).
08-15-2023, 06:56 PM
#419
Gets Weekends Off
Joined APC: Jul 2021
Posts: 378
Kirby is spending like a drunken sailor at a discount brothel…United was so under gauged and weak domestically after decades of neglect, he didn’t really have a choice because without connectivity UALs international network would be a bridge to nowhere. All of Boeings woes created a fire sale on aircraft which can be used for growth (whenever they end up being delivered) or replacement for older less fuel efficient aircraft. Time will tell how well UAL and Kirby’s master plan weathers the next economic downturn and how big of a hangover happens after this bender but it has the potential to be a real doozy if 300 aircraft worth of growth doesn’t materialize as planned.
SK had the “If you build it they will come” mentally at AA and ORD China service lost money the whole time, sometimes a glorious network serves your ego more than the share holders.
Has he done anything at United other than hype how awesome United will be?
08-15-2023, 08:16 PM
#420
Gets Weekends Off
Joined APC: Oct 2005
Posts: 900
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