Originally Posted by
loudclouds
what exactly are we liquidating? The vast majority of our aircraft are leased. Even if we had a bunch to liquidate, seems that the markets have taken a turn to where that would yield significantly less than even before. Isn’t consolidation common in economic downturns? Something about synergies. And where would F9 get thousands of pilots to fly these planes overnight absent a merger? Maybe a bunch of 1500 eager CFIs but certainly no captains.
We had almost 10B of total assets at the end of 2024. We had 10B worth of liabilities including debt at the same time.
The bankruptcy wiped out shareholder value and gave the equity of the company to its bondholders. There's quite a bit there for them to liquidate, though they certainly won't be getting 10B.
F9 would not buy our entire fleet out of bankruptcy, that is certain. They'd get some though for sure. Smaller carriers like the Wizz or Vueling might pick up 5-10 airplanes each, maybe.
Originally Posted by
JayRalstonSmith
There is no discounted rate for your airplanes. The used market is as high as it has ever been. No one is getting those airplanes at anything less than full value. Vueling, Wizz, etc will fly them with the yellow paint and all, with just a decal on them.
200
Originally Posted by
SSlow
Also, the company would have to actually own the airplanes for them to be considered assets in a liquidation. 100% correct that those A/Cs would be returned to the lessor and sold at a premium in the GLOBAL market.
You would think that someone claiming to be a former analyst on the street would know that.
Originally Posted by
Stayontarget
Yes for sure. Though leasing companies may not be upset to get airplanes back early if they can lease them out again quickly at higher rates. Hopefully it doesn’t come to anything like that.
The global market that's quickly sliding into a recession is going to pay top dollar if suddenly 171+ jets get dumped into the supply pool all at once? I think no.
Originally Posted by
JayRalstonSmith
I wasn't going to say anything, but you're not wrong here. This is why this person is a "former" analyst.
Didn't make a fortune but absolutely made enough in that business to do whatever else I want to do for the rest of my life.