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Old 05-05-2010 | 06:50 AM
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Originally Posted by LostInPA
Agreed. Thank you, Boiler. RJET buys two troubled brands....there was a reason YX and F9 were in the financial straits they were. A turnaround is not a 1 or 2 quarter undertaking, especially for a company with no real experience doing anything but operating fee-per agreements with majors. Alot harder when you actually have to do market research, sell tickets, answer to customers, etc.
With RAH only having about 147M in unrestricted cash, they don't have too many quarters to get revenue and costs under control. The fixed fee will help offset, but with the 18% decline from that segment in the last year, it seems harder to manage. The next quarter will be the telling one IMO.
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