Thread: Furlough estimate
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Old 05-07-2020 | 08:13 AM
  #444  
DoggiePoo
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Originally Posted by Softpayman
Thats a really simplistic way of looking at this. “Airline’s have never shrunk to profitability.” Well, airlines haven’t been in this set of complex variables before. Each situation is unique. I’m not saying they should or shouldn’t shrink, but that just throwing that sentence out there doesn’t mean anything with a new complex situation.
The reason "airlines have never shrunk to profitability" is because they are always in debt up to their eyeballs and need to service that debt. There is 1 particular cargo company that has absolutely no debt and could park every airplane if need be. And still be okay. Because the owner owns everything down to the staplers. Agree this is an absolute set of "complex variables" to navigate through. But if we break down the debt loads of each major airline. Obviously AA is in real bad shape. Now add in the complexities of each airlines route system especially international. I predict you will see $300.xx fares to Paris just to get people back in seats. Once they get back in seats and realize this whole thing has been overblown, America will be back in business. This is a wake up call for companies and employees to operate a financially sound business and personal life. A lesson not be taking profits and buying back stock. Just think, if each of these companies files bankruptcy. Each and every employee is going to take the hit when they come and want to renegotiate contracts. What happens to the Wall Street CEO that couldn't manage a lemonade stand?
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