Originally Posted by
9mikemike
The”cash burn zero” plan and the EO/REIL/EIL plan relied on a return to 50% pax/revenue by the end of December. The “Anglers” are now coming up with a plan to survive in the new reality of permanent change. CH 11 is prominent in those plans. Pension plan/ lump sum termination/ Airbus fleet termination/ Airport lease obligation restructuring/ 737 MAX obligation restructuring/ non-negotiated CBA restructuring.......I don’t think the “survive plan” cares about market share.
The recent financial filling shows 3.8 Billion in cash and an expected cash burn rate in August of under 125 Million. This means the company has about 20 months at current burn rates before running out of money. Obviously things will have to turn around or basically all the airlines will be bankrupt. American is in the worst shape of the big airlines. They haven't filed yet. I'll start worrying about Chapter 11 if the first dominos start to fall. Also, the stock is at $37 so wall street does not believe a bankruptcy is imminent at ALK. Will be interesting to see where demand is in summer of 2021. If it hasn't turned around by then it's not going to be pretty.