Originally Posted by
Propspilot
We all knew the 1900's were going away. This doesn't mean there aren't bigger things going on. Do you think VPC put all this money into Silver to just paint some planes and fly to the bahamas? They could have done that with the planes we had. These things don't happen over night.... We just launched Sabre last month!
This is just my opinion, but they never intended to be a company that owned an airline. From their website "Working primarily with US-based companies across a variety of industries, we typically seek to invest between $10 million and $50 million per transaction. However, we are also able to complete transactions requiring more than $50 million in capital through our syndication capabilities. We work primarily with small cap public companies and middle market private companies that typically generate less than $150 million in revenue and $30 million of EBITDA." (EBITDA=Earnings before interest taxes depreciation amortization.)
Airlines don't have high profit margins so unless they're huge like a major they're not going to make money hand over fist. So how else does a company like VPC make money on an investment? By selling it, so it doesn't make sense for them to pump it full of brand new RJ's or Q's and be some super regional at least in my opinion. Buying the Saab's, Sabre, etc etc is just the beginning for another company to see the potential future value and further grow. This is all just the bored ramblings and $.02 input being thrown around by us.