Originally Posted by
John Pennekamp
jsled, not necessarily doubting you, but the link you provided makes no mention of $3B in cash. Can you point me to a SEC filing or a press release that specifically states that? Your quote looks like some sort of internal memo... hardly a credible source.
And what do you think about the 11% interest rate. That's loan sharking compared to a typical loan rate. Add up the interest of $80 million at 11% compounded interest, then tell me with a straight face that SkyWest got hosed!!!?
As for XJT, I hear they are doing the flying at a loss. They want to stop the bleeding from all the parked planes. Flying them at a loss costs the company less than just keeping them parked.
John,
You have to scroll down to "investor updates". It is dated Dec 17...here ya go..
http://phx.corporate-ir.net/External...R5cGU9MQ==&t=1
Still dispute the 3 billion? and that is unrestricted.
As for the interest, look at the DAL credit line issued in Sep...9.2% I believe and UAL's latest was 13%!! Major airlines are not a good risk. I suspect Skywest had to make the loan to close the deal, and who is to say this deal won't be operated at a loss? What else would ASA do with those jets?