Originally Posted by
Michaelc136
Was thinking about this today, it’s debatably the smartest thing right now. They’ll continue sale lease back to hedge the losses atleast for Q3, Q4, and Q1. They’ll do funny book math to make it look like a ok loss, or good forecast.
This is all in the hopes of the company making a profit Q1, Q2 next year.
It’s really a Hedge against the immediate term losses. That and between selling older planes they’ll do ok….
I think what people need to realize is at the end of the day Frontier is in an OK position as long as indigo is on board… to management it’s not an airline… its a Hedge fund. As long as it continues to work for Indigo we’ll be puttering along. I just hope all the goodwill and brand value isn’t gone before they decide to sell or divest their shares.
They are absolutely ok in continuing the business as usual.
We don’t sell older airplanes as they aren’t our airplanes to sell. It actually costs us money to give them back to the lease holders since they need to be in near perfect condition. They have been extending leases and showing that as a profit. Investors have openly questioned that math on quarterly calls.