Originally Posted by
ToiletDuck
We'll just have to wait and see. Airlines have been running around losing billions, some even having to borrow cash from RAH, meanwhile during this time RAH has still made money. Their CASM may go up but based on the numbers provided they are still well below the Legacy names and can afford it. I don't know how it's going to work out for me personally but as far as the company goes I feel more confident in it's stability then some of the majors.
I agree that it should be a "wait and see" attitude, but even you have to admit that RAHs debt is very high compared to revenue. RAH has been able to leverage most of the debt because of the low risk of fee per departure contracts. It will be interesting to see how their credit plays out with respect to branded operations. I just don't see the same credit lines being extended. It could create problems down the road as they burn through their cash trying to prop up the branded ops.