Originally Posted by
alfaromeo
One loan is to refinance some BK exit financing (forget which company's BK it was, but who cares), the revolver is like a home equity line of credit, you can borrow against it when the need arises. It can be a war chest or just an insurance policy. If oil stays high, there is more consolidation to come.
Alfa;
There is more consolidation to come whether if oil stays high or not. Simple fact is that there are two majors out there that will have a very hard time competing with DAL and UAUA. AMR is a financial mess, and will need to restructure and or merge with someone. LCC is not much better, has low cash margins and frankly has not been doing what other companies have; shoring up its loose ends. DAL and UCAL's route structures both domestically and internationally are going to be very hard to compete with.
I would suspect once again for DAL to play a significant role in industry consolidation. As for AMR and LCC, it is about survival.