American Airlines said it signed a term sheet with Treasury for a $4.75 billion loan, which would be in addition to $5.8 billion that Treasury has already agreed to extend to American.
American is generally considered the financially weakest of the largest US airlines, having entered the pandemic with the largest amount of debt. Isom said in May that the airline was considering using its AAdvantage frequent-flyer program as collateral for a federal loan.
Yeah that seems fair. For the hardest hit company after 911, to do nothing to in regards to prepare for another rainy day, relying completely on the govt instead. What a nice agreement for a business that’s being mismanaged so badly it gives the impression that the persons in charge have no idea how to stabilize, save, and bring American back to its former glory. Almost as if the future of the airline is irrelevant to them and maintaining a false sense of growth and dividends to keep the board members happy.
The time has come, they need to start focusing on the future now. Preparing and implementing plans for a safety net and lowering their debt before worrying about growth and profit.
They will have to accept that because they decided to play games and abuse loopholes and face the brutal reality, time to accept responsibility, full responsibility. Not pass the consequences of their poor management to their employees, banks, and the govt.
I’m not privy to insider information, and I don’t know details, I’m just being judgemental and assuming that they are no different than most men & women that have run a business into the ground with poor management and lack of emergency plan.
It boggles my mind how after 911, they didn’t put a plan in place in case something occurred that grounded the fleet again. It’s like just relying paycheck to paycheck and not having any savings or retirement plan to fall back on. No equity at all. It’s easy to imagine how an individual can make these mistakes out of naivete but this is unacceptable for a massive corporation.
And to top it off, no one will be held responsible, the virus will be blamed. Dodged another bullet.
How about some honesty? How about saying you made a mistake in putting full trust and reliance in the economy to keep growing and improving. Every student of business knows, you never put all your eggs in one basket. Own it, protect your employees, suspend your salary and divide your stocks among the most essential employees l as a show of good faith and a way to regain trust. It may get you fired, but I’m sure you have plenty to fall back on as well as a network of people that can help find you employment. Things your employers don’t have the luxury of.
I hope that if I was in that situation, I would fight my selfish desire to save my own ass and do what I could to ensure that my employees (the heart and soul of a customer oriented business) were taken care of. Regardless of these current circumstances, it would have been my responsibility and I failed. I would minimize the effect of those consequences for others that had no say and rely solely on me as a leader. If this means moving to a smaller home, selling any unnecessary vehicles, jewelry, art, landscapers, maids, etc etc.
As CEO or higher level management, I should have education and savings to fall back on. I would survive. It would suck but I can only imagine how much worse my heart would hurt knowing that I was a contributing factor in causing mass job loss, loss of homes, extreme stress that leads to the break up of families, and many other awful outcomes, yet I keep my job and a healthy salary.
People dedicate so much time, energy, love, passion, and life to the company they work for. They embrace their career and truly enjoy giving 110% in order to help the company prosper. They speak with strong emotion, bragging about the company that gave them a chance to succeed and make an honest living to support themselves and their families.
Yeah it wouldn’t be acceptable to me and would lay heavy on my conscience.
Hopefully I would be given a chance to remain employed and begin the process of working side by side with employees, getting my hands dirty, as a team to rebuild faith and trust privately and publicly.
Later I’d do lectures and write a book about the process and sacrifices made to bring a hurting airline from near ruin to again being a dependable, respected and the image of AA as America’s choice, the symbolic Airline of the leading Superpower of the world. Bring back the intense pride that wearing the AA badge should represent. The top. The best.
Haha then I’d retire and write a best selling memoir. Content and happy to spend my days seaside maintaining my Wikipedia article.
Apparently in this alternate universe my ego is both humble and stricken with bouts of narcissism hahaha
I need to get out of the house, my mind wanders into vivid daydreams if you haven’t quite noticed. This to me is a sign I need external stimulation. I’m always saddened by the vast amount of time I’ve managed to waste. Life is short and my experiences seem lacking given the incredible amount of things that are here to do. Time to start a bucket list with one strict rule, NO EXCUSES. JUST DO IT ALREADY! THE ONLY THING HOLDING YOU BACK IS FEAR. NO EXCUSES. THERE IS NOTHING TO FEAR BUT THE INCREDIBLE GUILT AND REGRET YOU’LL BE OVERWHELMED BY ON YOUR DEATHBED. WAKE UP DAVID, TIME IS RUNNING OUT.
Haha sorry about that. Pay it no mind.