Hi Leighton,<br><br>Our current valuation of American Airlines is based on the visibility we had for the company based on the financials disclosed to public and our estimates of the airline's prospects given its strategy and economic and competitive climate in general. This is most appropriately viewed as the value AMR's stock could command prior to the bankruptcy filing. How the carrier emerges from the bankruptcy i.e How do its obligations change in amount and timing is largely uncertain right now. Therefore, we are currently waiting to get more clarity on how the future shapes up for the carrier to update our model. You should leverage the model to understand the fundamental dynamics of the airline and feel free to share your views around what might change at the airline, post the bankruptcy. Tweak the model drivers accordingly, though the resultant upside or downside should be considered only directional in nature as the sensitivity of the airline's valuation to various drivers could also change going forward if the company decides to deleverage considerably.
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