Jet Fuel, $11.37/gal in NY and other rambling aviation thoughts.

[kschachn]

In 1990 a credible media person asked what turned out to be a trick question: How much money have all of the US airlines made together, all-time, since their inception around 1920?

The answer was that by 1990 they had collectively lost $4B.

Reminds me of this quote from Robert Crandall, the former CEO of American:

During the latter period of Crandall's tenure as CEO, investor concern over airline bankruptcies and falling stock prices caused Crandall to remind his employees about the dangers of investing in airline stocks. Known for his candor, Crandall later told an interviewer, "I've never invested in any airline. I'm an airline manager. I don't invest in airlines. And I always said to the employees of American, 'This is not an appropriate investment. It's a great place to work and it's a great company that does important work. But airlines are not an investment.'" Crandall noted that since the airline deregulation of the 1970s, some 150 airlines had gone out of business. "A lot of people came into the airline business. Most of them promptly exited, minus their money," he said.

 

[GON]

Reminds me of this quote from Robert Crandall, the former CEO of American Airline

Current Chairman of American Airlines Doug Parker might have a different take..

Doug Parker, through Wall Street, Union Officials, and Politicians was able to purchase American Airlines while AA was in bankruptcy (but very solvent). Doug took AA out of bankruptcy, with a LOT of cash on AA's books, the highest paid union employees of any major airline, and the largest debt of any airline.

Shortly after AA exited BK, Doug took much of AA's cash, and even borrowed more money, and did a AA stock buyback. At the same time, Doug sold over 100 million dollars of stock that he was awarded for free. Doug's net worth prior to the AA deal was rumored at the high six figures, very low seven figures. After having AA as the most indebted airline in the USA, and increasing its debt to do a stock buyback, Doug was able to exit his AA stock and put over 100 million dollars in the bank. He was able to pocket, in cash, over 100 million dollars in under 30 months. WOW.

There is money in the airline business, huge money for a few. Of course, instead of reducing AA's massive debt, Doug used AA's cash and borrowed even more to execute AA stock buyback. When the challenges of MAR 2020 hit the airlines, Doug was the very first major USA Airline executive to visit the White House. And his visit was very financially successful.

 

[kschachn]

Yeah big difference in the timeframe though. I should’ve noted when Crandall made that quote. The American airlines you reference is nothing like the American airlines that was in existence when that quote was made. That American Airlines abhorred the idea of bankruptcy.

 

[UncleDave]

I don't think our flight department is shutting down. But would be OK if we did. I've had my health problems and am really ready to retire. I'm still getting paid, but no raise since 2012. My personal unreimbursed business expenses are epic.




I've been wanting to sell the plane for many years. I don't love it despite the fact that it is in good shape. I'm so spoiled flying far better equipment, that it is nothing more than a let-down to me. In particular, it is underpowered so climb rates are 300FPM at sea level on hot and heavy days. Plus wing loading is 16 pounds per sq foot (at max gross) lower at my typ operational weights. That's so low that even modest gusting results in spine crushing "felt" turbulence and despite its very responsive flight controls, it is truly a handful on normal hot FL days.

I don't mind modest turb at all. But when it's an hours long fight to remain upright, while uncomfortably yawing about, it becomes annoying. I do not have an autopilot.

I would much prefer a turbo Mooney. Higher wing loading, faster through turb, more stable, capable of climbing out of the rough air.

Super bummer.... all that gorgeous gear sitting on the ground is about as expensive way to own it as there is.

All the reasons you state are are why I should have bought a 210 as a young man.
Even as a fairly successful businessman Ive been priced out of private aviation at a level that provides me actual comfort and shorter trip times than just driving.

My trips to the desert got uncomfortable with a plane full of friends and 110 degree ambient heat.

Love the turbo Mooney.