so you’re saying United would keep their investment in xjet, but wind them down? Doesn’t make sense. What I’m saying is if United keeps their investment, xjet survives. Obviously if they sell them off, anything goes.

 

It's a sunk cost. I'm not saying they will or they won't, but far too many people use evidence of a past financial commitment (stake in airline, cabin refurbishment, etc) as a justification for why X will continue to be around.

That's not how business works. What's done is done. The only thing that matters now is what happens going forward.

 

^^^^^^^^^This^^^^^^^^^^^
XJT has no assets to sell other than a list of qualified employees. United already owns all of the equipment that XJT operates. The previous money was spent at a time when XJT needed propping up to provide reliable feed to United. It wasn’t an investment to be sold or kept, it was money spent in the past to keep feed when demand was at record highs. If going forward they decide that that the equipment will not be around, neither will XJT. It won’t cost them any money. Park the jets or transfer them to another regional, and XJT is just a list of employees with no work. They could easily decide that XJT handles what is left of the 50 seat flying, or they could consolidate flying and transfer those planes to another regional. That decision will be based solely on what is best going forward, not money spent before the virus.

 

XJT was purchased for 70mill.. plus parts, ect. So lets say UA’s 43% is 50 mill. Start a stop
watch for 5 hrs. UA just burned 50 mill in losses!!! There investment is. Crumbs at this point. Airlines need cash to survive this. How much “cash on hand” does Mana have??? Because UA isn't paying allowance right now.. I do believe XTJ is in better position then some UAX carriers though...

 

AVIATE tho…..

 

I guess you meant United’s 49% and Mana Air (UAL investors group) 51%.

XJT is in pretty good shape financially compared to some other UAX carriers.

 

Until XJT receives CARES ACT money they are in one of the worst positions. As of 2 days ago they were still negotiating with their shareholders. Unless the CEO has confirmed anything I would hold my breath on saying they are better position then anyone.

 

No. i meant 43%..... (but don’t care to debate it... so say whatever percentage you want as long as its less then 50%... really doesn't mater still a minority..)

 

it’s 49.9% and it’s really not a secret.

im curious what “point” you are trying to make by saying it’s 43
from UA’s 10-K

 

XJT will receive CARES ACT money.