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Old 05-19-2020, 05:51 AM   #1  
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Default 321s sale and leaseback

Generating liquidity. Was always reassuring that Delta buys its assets with cash. Just hope we got a good deal on the sale. After all this CV pandemic is done, we (and other companies) are in serious debt. I know this is a sale, but post recovery our liabilities will be higher increasing our operating expense. After a vaccine is available, might be 3+ years before we are able to return to a post covid balance sheet. Hopefully a quick rebound in the global economy after an antibody vaccine.

https://www.marketwatch.com/press-release/altavair-closes-sale-and-leaseback-of-six-a321-200-aircraft-with-delta-air-lines-2020-05-19-8159036?tesla=y

Last edited by Humbleavi8t0r; 05-19-2020 at 06:02 AM.
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Old 05-19-2020, 05:55 AM   #2  
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Reload/edit the link please. Not clickable. Thx.
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Old 05-19-2020, 05:56 AM   #3  
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Link worked for me.
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Old 05-19-2020, 06:03 AM   #4  
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Originally Posted by Humbleavi8t0r View Post
Was always reassuring that Delta buys its assets with cash...
itís a good principle to live by but not progressive enough for current MBA school preaching. Nowadays they brainwash you that debt is cool, sexy and necessary.


As of Dec 2019 SEC filing we had 96 a321 ceo.
53 owned
12 in finance lease
31 in operating lease

Retiring some number of a320s and dumping leased a321s explains why baby bus has a lot more displacements vs 737.
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Old 05-19-2020, 06:07 AM   #5  
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Originally Posted by Humbleavi8t0r View Post
Generating liquidity. Was always reassuring that Delta buys its assets with cash. Just hope we got a good deal on the sale. After all this CV pandemic is done, we (and other companies) are in serious debt. I know this is a sale, but post recovery our liabilities will be higher increasing our operating expense. After a vaccine is available, might be 3+ years before we are able to return to a post covid balance sheet. Hopefully a quick rebound in the global economy after an antibody vaccine.

https://www.marketwatch.com/press-re...159036?tesla=y
They would be better off raising cash by selling more common stock like Southwest did. Increasing the number of shares of common stock dilutes the value of managementís stock options however. Canít have that happen.
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Old 05-19-2020, 07:40 AM   #6  
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They would be better off raising cash by selling more common stock like Southwest did. Increasing the number of shares of common stock dilutes the value of managementís stock options however. Canít have that happen.
Mostly agree. It depends on the terms right now. Overall debt is insanely and radically unsustainably cheap on the open market so I'd tap that hard first. Then take all 5B in government cheese loans that are below the already low market. Then flood the market with shares to raise another 5-10B then do a reverse split to keep the psychological price similar.

When we (as an industry) do return to our former glory, any debt we could incur right now can be paid back in a few years. As for the EPS bonus mongers, they'll have to defer their second and third private islands for a little while. Boo hoo.
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Old 05-19-2020, 06:55 PM   #7  
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Quote:
Originally Posted by Humbleavi8t0r View Post
Generating liquidity. Was always reassuring that Delta buys its assets with cash. Just hope we got a good deal on the sale. After all this CV pandemic is done, we (and other companies) are in serious debt. I know this is a sale, but post recovery our liabilities will be higher increasing our operating expense. After a vaccine is available, might be 3+ years before we are able to return to a post covid balance sheet. Hopefully a quick rebound in the global economy after an antibody vaccine.

https://www.marketwatch.com/press-release/altavair-closes-sale-and-leaseback-of-six-a321-200-aircraft-with-delta-air-lines-2020-05-19-8159036?tesla=y
back in March as everything collapsed delta was still trying to find ways to take deliveries of the 321ceos.

evidently deliveries resume in July or August, I canít remember which. The Neo is still supposed to show in November. We shall see. But as PJ you get more bang for your buck on the NBs.
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Old 05-19-2020, 06:57 PM   #8  
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back in March as everything collapsed delta was still trying to find ways to take deliveries of the 321ceos.



evidently deliveries resume in July or August, I canít remember which. The Neo is still supposed to show in November. We shall see. But as PJ you get more bang for your buck on the NBs.


...and the 321NEO requires negotiating for its pay rate. Hopefully all this virus mess doesnít muck up those talks.
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Old 05-19-2020, 07:01 PM   #9  
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. Hopefully a quick rebound
good news from Stanford folks:

The new Ioannidis study reveals the infection fatality ratios (IFRs) of the Coronavirus from 12 seroprevalence studies of greater that 500 individuals per sample found:

7 of 12 studies saw a corrected IFR of 0.06-0.16, similar to seasonal flu

3 of 12 studies saw a modestly higher IFR of 0.25-0.40 Ė slightly higher than flu

2 of 12 studies saw a modestly lower IFR of 0.02-0.03 Ė slightly lower than flu
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