Originally Posted by
ninerdriver
If the feds let UA or DL die from Covid in the short term, then it'll be even more exciting once AA dies of natural causes five years from now...
Parker's plan for a successful airline:
- Leverage everything
- Hope UA and/or DL don't get bailed out if they run out of cash
- Hope AA gets bailed out when AA runs out of cash
- Restart stock buybacks with negative free cash flow
- ???
- Successful airline
I see the plan as:
-leverage everything
-hope UAL and DAL scale way back in order to preserve cash
-maintain the ability to spring on demand and take market share from two listed above when demand returns (betting on faster recovery)
-successful airline
The downside being, the recovery is extremely slow and we hemorrhage a bunch of cash, enter chapter 11 and restructure our debt.