Originally Posted by
Sanchez
It depends on the circumstance, I'll explain my view with facts.
1. We have 206 aircraft that will continue to generate revenue with CAL under our CPA.
2. We have 10 possibly 15 aircraft that will be generating income on the charter side.
3. We have other ventures generating income (paint shop, mx shop in Mexico, the leases on the 25 LR's)
4. Our rate of attrition is going through the roof as most of our guys are finally getting calls from CAL now that their hiring full swing.
How do you know that your new ventures will generate "income"? I think what you mean is revenue. Income implies that your operating expenses and other costs will not exceed your revenues. Just because you plan to operate somewhere doesn't guarantee revenue, and often in the first couple years in a new market/operation expenses combined with one time expendictures and other unforseen costs will exceed revenues. It seems like a lot of young guys out there assume that whenever a business operates it "makes money." Any operation can generate revenue, but to truely be financially benificial to a company is something completely different.