Originally Posted by
shrsailplanes
The sale/leaseback gravy train is at risk of coming to an end. Frontier has $500M in cash reserve and $5B in debt (much of it leases) and has been steadily losing money. I imagine at this rate Indigo will have a harder and harder time finding banks to take their sale/leaseback deals with Frontier as the lessee. I suspect this is why BB was shown the door.
Cost cutting just ain’t gonna do it anymore. Frontier has to create real, homegrown, sustainable profit. Until then, a new contract is the last thing on their minds. The sale/leaseback money machine needs to be purring along again before we get a contract.
The system is rigged. Legacies are banks that happen to fly planes. Unless you’re one of them, it’s going to be almost impossible to make money. Also the problem with the current K shaped economy is ULCC customers are ones that don’t qualify for credit cards or have no disposable income. You can’t make money off of cheapskate’s and stoners, somethings got to give