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.
This is accurate. If Indigo decides it’s not a good business and leaves, it is def a similar situation like spirit real quick, or even worse. BB gets reallllll sensitive every time Jamie Baker from jpmorgan gets onto him about the sale leasebacks, like in today’s questions answer session for earnings. The banks are real skeptical. A lot of airlines are struggling. The difference with most is they have assets. For more comparable for size… JetBlue, they have a huge asset pool with gates and slots and own a bunch of planes and have roughly 3.8b in liquidity with more to leverage against. Frontier does not have much if anything in assets. Frontier has 700 million in liquidity with just planes slots to sell for lease backs, which the analyst today were all over bb about that market starting to turn and be more in banks hands not the airlines. 70 mill loss with that much in liquidity won’t last forever. It’s not the end of the world right now, but it definitely is not good, which is why stock fell 15% today and investors ran. They are completely skeptical.