Originally Posted by Itsajob

Other than the previously mentioned turkey vouchers, how does ExpressJet secure financing without collateral? They may have employees and a payroll, but they can’t issue stock warrants, and they don’t own the airplanes, gates, ground equipment, etc. If the government requires other airlines to put up stock warrants as collateral, what can a non-publicly traded company with no real assets offer? Where do they get the money to cover payroll? United can’t cover their own and are looking at shrinking the airline, so the money isn’t going to come from them. There is lots of discussion about the size of the payroll, but not other qualifying factors.