Originally Posted by
Andy
That's another bold statement.
This company is very likely to survive even if it shrinks to 1/3 its current size or smaller. It's not about shrinking to profitability; it's about shrinking to stop the cash bleed. The company goes into survival mode and sheds as many expenses as possible. Perhaps even a visit to the man in the black dress. But I don't foresee the United as a likely outcome.
It sucks, but if the company needs a lot fewer widgets pilots for an extended period of time, the company will reduce the number of widgets furlough enough pilots to right size.
Another concern to me is Federal support post-election. If Biden wins and the Ds gain seats in the Senate, all this 'corporate welfare' will disappear and the Ds will blame any economic downturn on Trump's poor handling of the economy. I could just recycle one of the previous scripts they've used, changing minor details and it's updated to fit what's happening right now.
the number that I don’t think any of us know is how big of an operation MUST we have in preset to pay the bills for the things we can’t cut. I think that number is 60%. Bankruptcy lowers that number but eventually you have given up to much and shrank to insignificance and off you go into the sunset ala PanAm, TWA......there’s also the problem with debtors in Bankruptcy they have to believe your business plan is viable or you move onto CH 7.