gouchobob
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Has anybody flow with AA recently. They are spending a lot of money on the airline and I wonder if anybody can comment on the level service, quality of service, etc., recently.
Back in 2008 the government nationalized the airline, since they have loses of $540 million in 2009 and $420 million in 2010. When they took it over the government assumed about $1 billion in liabilities which according to an article in the WSJ is all but paid off. In 2010 they took on another $400 million in debt. So since 2008 the taxpayers are on the hook for $960 million in losses plus they have paid a billion off in debt, plus they assumed another $400 million in debt last year. All told the taxpayers shelled out or assumed debt of about $2.3 billion dollars so far on this venture. The airline employees about 10,000 people so this works out to a cost of about $230,000 for each job saved by the government.
The airline currently operates about 41 or 42 aircraft. They are hoping to become profitable by 2012, but its hard to see how. One problem is that they are way overstaffed. Hard to see how they can be profitable when they have probably 2 1/2 times the number of employees needed for an airline this size. My guess you could have started and fully equipped 3 or 4 airlines of comparable size for the money that has been spent. Only in Argentina, another example of good decision making by the current government.
http://online.wsj.com/article/BT-CO-20110407-713314.html
Back in 2008 the government nationalized the airline, since they have loses of $540 million in 2009 and $420 million in 2010. When they took it over the government assumed about $1 billion in liabilities which according to an article in the WSJ is all but paid off. In 2010 they took on another $400 million in debt. So since 2008 the taxpayers are on the hook for $960 million in losses plus they have paid a billion off in debt, plus they assumed another $400 million in debt last year. All told the taxpayers shelled out or assumed debt of about $2.3 billion dollars so far on this venture. The airline employees about 10,000 people so this works out to a cost of about $230,000 for each job saved by the government.
The airline currently operates about 41 or 42 aircraft. They are hoping to become profitable by 2012, but its hard to see how. One problem is that they are way overstaffed. Hard to see how they can be profitable when they have probably 2 1/2 times the number of employees needed for an airline this size. My guess you could have started and fully equipped 3 or 4 airlines of comparable size for the money that has been spent. Only in Argentina, another example of good decision making by the current government.
http://online.wsj.com/article/BT-CO-20110407-713314.html