Originally Posted by
TSA796
If that is an incredible stroke of genius why did they not lease them from the start. We all know GJ is hanging on by a thread. I know for sure uncle Hulie will not take risks or stay in business if a solid profit plan can't be implemented. His model of operating a subpar airline on the cheap is dead. If he won't step up and run a first class business he is history. The big problem he has is current management is not very talented because he runs everything on the cheap, including his management salaries. He really does not have many choices. Not sure if he has anything left to sell now that he cashed out with jets. He is just setting up for an exit stage left when the day arrives. He is not stupid, on the contrary he is a very shrewd business man with an accounting background. He knows how to make money in a flourishing airline environment not a complete melt down where he has to fight to survive. He knows the airline industry will not recover back to precovid numbers for at least 5 years. That is assuming these vaccinations are effective for more than 4-6 months. Plus the risk of a severe depression are just one stimulus check away, our economy is in big trouble and Hulas knows it. Right now the long term risks are unknown so there are many risks involved for someone putting up their cash to play. He is not a risk taker, plus he is now in the twilight of his life so even less likely he will invest long term. None of his kids want the business, they just want the cash like selling jets. And lastly even United does not want to be associated with his business model of running a business that believes everything should be run as cheaply as possible making the customer experience less than favorable, that is putting it politely. He will bow out as soon as United allows him to. Sorry Gojetter's.
Gojet is staying alive with the help of United and Skywest and the prospect of government pandemic money coming through. That money is basically pledged as collateral along with the planes. Assuming the money comes through there will be some maneuvering to get away from the money going to keep people employed and move it over to paying bills and transferring assets. In the end there will be a deal agreed to by everyone for the money to pay the bills, assets that were collateral transferred, and a number of employees going with the planes. I've been a part of 3 of these types of deals in the past. The first time almost 1000 pilots went with the planes, The next 2 were merely the guaranteed interviews. "The deal was not optimal and was not what anyone wanted, but given the economic constraints we all faced this deal provided the best opportunity going forward for all. XXX airline has committed to interviewing all Gojet employees over the next 24 month and to hire a minimum of YYY of those interviewed provided XXXX continues to hire. Everyone will have a chance with this agreement." Then there will be a line added, "The payment of ZZ million to HK and 75k per month until an update future date for his helping with the transition of assets is a standard in the Airline industry for this type of transitions. The US government gas agreed to the structuring of this deal even though the money was originally given to keep employees employed."