Originally Posted by
schmohawk
**Not a financial expert**
I don't think that is an accurate characterization of the debt obligations. $988 Million of that $1,552 Million of that are Flight equipment purchase obligations. How much of that is paid for in cash or current assets ? I'm guessing very little. E.G. I bought a $1,000,000 house but i financed the remaining $900,000 with secured financing and a $100,000 down payment. (I didn't, just an example) I believe a better look is at current assets vs current liability for short term viability.
But you're right, debt & purchase obligations and cash flow are a major problem for airlines with young growing fleets. How creative can management get with securing financing , and at what interest cost and schedule will determine the future of the airline. Godspeed
I'm pretty sure the 2020 obligations are the actual amounts due for that particular year. For example, if you mortgage ~100 planes, you have ~100 planes worth of down-payments and payments due for that fiscal year.
I could be mistaken with how I'm interpreting the 10-k but it's a yearly breakdown which leads me to believe that they actually have $1.5b due in obligations this year.