Considering the effect that the pandemic may have on some businesses and larger companies, would your...

Considering the effect that the pandemic may have on some businesses and larger companies, would your decision to lend to American Airlines change when considering the current situation?

American Airlines' biggest liability in their operating income is its contributions to pension plans. It contributed (in millions) $286, $475, and $1,230 in 2017, 2018, and 2019 respectively. Even with these large sums contributed, American Airlines has stayed in the green in net cash earned from operating activities; earning inflows of cash of (in millions) $4,744, $3,533, $3,815 in 2017, 2018 and 2019 respectively.

American has not been as successful in its financing and investing activities. American has financed a lot of aircraft with long term debt. In 2018 they had a capital expenditure and aircraft purchase of $3,745 and $2,354 in the issuance of long-term debt. In 2019 they had capital expenditures and aircraft purchase of $4,268 and $3,960 in the issuance of long-term debt. American Airlines has seen outflows from financing activities of (in millions) $1,145, $1,672, $1,568 in 2017, 2018, and 2019 respectively. It also saw outflows from Investing activities of $3,636, $1,973, and $2,243.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

The pandemic has changed the way businesses of all kinds are conducted. Many companies have decided...

The pandemic has changed the way businesses of all kinds are conducted. Many companies have decided to adopt cloud computing as their IT solutions. You are required to assess FIVE (5) drivers for adopting cloud computing. (Note: your answer shall not exceed TWO (2) pages.) 20 marks

4. Two of UK’s larger wine distribution companies, Bibendum and PLB, merged their businesses in October...

4. Two of UK’s larger wine distribution companies, Bibendum and PLB, merged their businesses in October 2014. Bibendum is primarily a restaurant supplier while PLB focuses on supplying wines to retailers. Does this suggest a means through which the merger might create value added? Hint: in your response, consider both economies of scale and scope for the new firm structure.

Two of UK’s larger wine distribution companies, Bibendum and PLB, merged their businesses in October 2014....

Two of UK’s larger wine distribution companies, Bibendum and PLB, merged their businesses in October 2014. Bibendum is primarily a restaurant supplier while PLB focuses on supplying wines to retailers. Does this suggest a means through which the merger might create value added? Hint: in your response, consider both economies of scale and scope for the new firm structure.

Small businesses with 200 employees or less, don’t derive the same benefits as larger companies do...

Small businesses with 200 employees or less, don’t derive the same benefits as larger companies do from budgeting. Do you agree or disagree with this statement? Discuss why small businesses might not choose to extensively engage in the budget process. Also discuss the various benefits of budgeting and state whether it is likely that a small business can reach their goals without engaging in some kind of budget process.

Would the employment effect of a minimum wage be larger or smaller if the labor demand...

Would the employment effect of a minimum wage be larger or smaller if the labor demand elasticity with respect to wages is elastic (E < −1)? Briefly explain.

Knowing the widespread effect of the COVID 19 pandemic, where would you rather invest your money...

Knowing the widespread effect of the COVID 19 pandemic, where would you rather invest your money today: Equity or Real estate?

"Possible measures that would be beneficial to restaurant businesses impacted by a pandemic crisis? Out of...

"Possible measures that would be beneficial to restaurant businesses impacted by a pandemic crisis? Out of the following three theories. Which one can be best used to create a theoretical framework to discuss this topic and why? Maslow's Hierarchy of needs Porters Five Forces Marketing Mix and the 4 Ps

"Possible measures that would be beneficial to restaurant businesses impacted by a pandemic crisis? Out of...

"Possible measures that would be beneficial to restaurant businesses impacted by a pandemic crisis? Out of the following three theories. Which one can be best used to discuss this topic and why? Maslow's Hierarchy of needs Porters Five Forces Marketing Mix and the 4 Ps

Aircraft companies had very difficult times during the pandemic period. AHL, and OA have created some...

Aircraft companies had very difficult times during the pandemic period. AHL, and OA have created some advantages for their loyal customers, especially for the Istanbul-Ankara flight. AHLprovides 900 points (flight miles) for each flight to its customers flying from Istanbul to Ankara. However, it gives 1000 (flight miles) extra points to more than 3 flights and 1350 (flight miles) to more than 6 flights within three months. While OA gives 1200 points (flight miles) for each flight, it gives 1500...

In a restaurant that allows smoking, your consumption of cigarettes may have a negative effect on...

In a restaurant that allows smoking, your consumption of cigarettes may have a negative effect on my enjoyment of a restaurant meal. Yet you do not in any way pay for this negative effect on me. a. (5 points) From this information, decide on the type of externality your consumption creates in the market for cigarettes. Explain in detail, using words and an appropriate graph, the nature of the externality. b. (5 points) In your graph denote the magnitude of...

Subjects