Originally Posted by
threeighteen
I'll agree it wasn't the plan, but they made it work and it ended up working extremely well for them.
Buying another regional from AA (or another major) to provide that major with short term liquidity may not make sense financially for OO short term, but could help secure lucrative long term contracts. It's all about the long-game.
We'll see.
Skywest has .5B in liquidity 3B in debt, and is now negative cash flow by .1B per year, maybe more.
In the past, liquidity provides time for a company to get its cost below its revenue and back in the black.
AA would burn through every penny Skywest could give them in 15-25 days.