A couple of things:
1. June 9th represents the 60 day anniversary of the BK filing. Under Chapter 11 all aircraft leasese and mortgages are put on hold for 60 days. At that point the company must either accept or reject these leases. If they accept the leases they are required to pay back-rent and agree to pay all lease fees going forward. This represents a huge cash payment, which segues into the second event:
2. The Creditor Committee meets on June 12 to review the progress of the F9 BK process. They continually monitor whether the company is worth more going forward with operations or if they are worth more being liquidated.

F9 went into BK with more relative cash ($170,000,000) and assets ($175,000,000) than the typical small carrier (Aloha $3,000,000 cash). This means that they are worth quite a lot dead and maybe not so much alive ($132/bbl oil) and projected massive losses for the industry. So....at the end of the day, the Creditor Committee will determine the fate of the airline...probably before they have to write the big check for aircraft leases. Now, if F9 secures DIP financing or at least a commitment of such, they will most likely be able to continue operations and put heir plan forward for BK exit.

wow, thanks for the info. I guess we just wait until then.


I think f9 having Lynx is a big help for them, q400's are very profitable for them.

Not empty they aren't...have you seen their loads recently?

loads are good, their new routes are working well.

Not to be a downer, but do the ticket fares cover the cost of the new routes. Usually, but not always most new routes have introductory fares to stimulate the market. Unfortunately, the cost of operating the new route is pretty pricey these days.

Again, not to be a downer just looking for info.

FF

I couldn't tell you for sure, but in general, airlines typically offer introductory low-cost fares to new destinations. If that is true at Lynx, they probably aren't bringing in all that much revenue.
All I can say is that Frontier needs DIP financing and they need it right NOW. I'm afraid the outlook is pretty grim if they are unable to attract outside financing in the next few weeks. Best of luck to the F9 and Lynx guys.

we filed for a 60 day extension to buy us some more time to find DIP financing fwiw. Not sure if it has been approved or not yet.

Obviously, YOU have no clue. I was referring to the Lynx pilots--the subject of the post.

How are they profitable? For one thing, I doubt they've earned back their huge start-up costs. And what about fares? Are they charging enough for the fares to earn back the inordinate cost of the start-up, their ongoing direct and indirect costs, plus a profit margin?

There appears to be a general assumption that Lynx is profitable, whereas this is not likely, and no one has cited any actual data in support of this assertion.

Do you have any actual data to support any of your general statements?