$10 Billion Embezzled From Bankrupt Airline Group

by Gary Leff

hongkong airlines plane
Jan 31 2021

China’s HNA Group began with Hainan Airlines and then acquired brands like Radisson Hotels; airline caterer Gate Gourmet; 25% of Hilton; nearly 10% of Deutsche Bank; and 29% of NH Hotels. They acquired stakes in Red Lion Hotels; Virgin Australia; TAP Air Portugal: South Africa’s Comair; Azul Brazil and much more. The company’s corporate structure sometimes makes it difficult to discern what they own, what they’ve sold off, and what they’ve merely sold to themselves.

Before the pandemic they worked to reduce a debt load that exceeded $100 billion by selling off assets, but continued to face problems paying for fuel, problems paying employees, and problems paying investors. HNA even offered investors airline airline tickets in lieu of interest payments.

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American Airlines Is Bringing Pre-Order Meals Back For Transcon And Hawaii Flights

by Gary Leff

Jan 31 2021

American Airlines started letting customers pre-select their meals online when they’re flying in premium cabins back in the fall of 2012. Delta didn’t roll out this feature until early 2019 and going into the pandemic United was still in testing.

The airline offered meals pre-ordered between 30 days and 24 hours before a flight, selecting from items that are offered on board anyway. Most meal service on domestic flights was scrapped, though, early in the pandemic.

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This Airline Tried Securities Fraud Before. Now In The GameStop Era They’re Giving It Another Run

by Gary Leff

Jan 30 2021

Barry Michaels has been trying to start an airline for 30 years. The idea all along has been the same: fly Boeing 747s domestically with cheap fares. He used to call the idea “Family Airlines.” And he even went to prison for tax and securities fraud in connection with raising money for the venture.

It’s now called Avatar Airlines, and they’ve sent out a press release ‘planning’ a billion dollar valuation – without even flying!

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American Airlines Tries To Sell Shares Into The Wall Street Bets Frenzy

by Gary Leff

Jan 30 2021

American Airlines stock went on a speculative tear as investors guessed that the Reddit ‘Wall Street Bets’ forum might turn their attention to the heavily-shorted airline stock after the GameStop play ends, or even sooner.

But the GameStop play is unique, a short squeeze like nothing we’ve seen since Volkswagen in 2008. It isn’t something that happens every day, at the drop of a hat, because a collective hedge fund on Reddit decides a stock is the next meme.

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Man Dressed Up As Ronald McDonald To Go Through Airport Security After Losing A Bet

by Gary Leff

Jan 30 2021

A man lost a bet and had to go to the airport and fly home dressed up as Ronald McDonald. And naturally there’s video of the whole thing. It all starts applying makeup at a Party City store and then heading off. Everything is going great until airport security.

The TSA was a real spoil sport here. They wouldn’t let him through security without taking his makeup off, ostensibly because they needed to match his face to his ID. He left and then returned looking defeated. Although actually proceeding through the TSA nude-o-scope as a well-masked fast food icon was well worth the effort.

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New Federal Mask Rule Issued Late Friday Night Means Less Mask Wearing On Planes, Not More

by Gary Leff

Jan 30 2021

I warned you this would happen, but you supported a federal mask mandate anyway. Airlines already required mask-wearing on planes. I told you that if the federal government got involved this would mean fewer options for travels, and less mask-wearing overall. Guess which one of us was right?

Late Friday night the CDC issued its rule for mask-wearing on public transportation and airlines following the President’s executive order asking them to do so….

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American Airlines Tells Flight Attendants They’ll Be Laid Off Again, Third Government Bailout Requested

by Gary Leff

Jan 29 2021

In December Congress passed a $15 billion airline payroll bailout, requiring airlines to bring furloughed employees back to work and pay everyone December 1 through March 31, 2021. Per furloughed worker this was the most expensive jobs program in history (at over $1.1 million annualized per job) and American says it’s only spending 10% of the $3 billion it received on furloughed workers.

American’s flight attendants union says it was told to prepare for a new round of WARN Act notices, so we may be starting layoffs all over again – and they along with another union are asking the government for a third airline bailout. Maybe this time most of the money won’t go to shareholders and creditors instead of workers.

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