AirBear

https://www.barrons.com/articles/20-...ld-51589298678

Article contains some interesting info on "Credit Default Swaps" which are like insurance for airline bond holders. The more likely the company is to default on their bonds the higher the cost of the CDS. Here's some examples from the article:

Apple: 30 cents per $100 (example for a very strong company)
Southwest: 4.7%. ($4.70 per $100)
Delta: 12%
JetBlue: 1.6%
UAL: 24%
American: 54%

Article also says further Gov intervention with the airlines is an unknown at this time so could change all this.

rickair7777

If you're buying airlines right now, you're betting on gov aid to keep them out of BK, or a vaccine rolling in this year. It's pure speculation.

ReadOnly7

And why should anyone listen to Boeing? Get your own house in order before you start evaluating ours. Dude is spouting off in public to serve his own agenda.

Stan446

One of the big three are going to take it down. Sad but true.

Mozam

What would his agenda be ?

bababouey

I think he’s either trying to lower expectations for his company or lobbying the govt to help his customers out more. Swa is going bankrupt, so it’s not them, delta has no Boeing orders, so they’re out. The other 2 are in the worst shape in my opinion, United has over 200 Boeing jets on order, AA, over a 100. I’m sure he just doesn’t want any more massive order cancellations, they didn’t book a single order in April.


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Privateer89

Does anybody think that something worse than 9/11 and 2008 combined won’t cause at least one bankruptcy? I highly doubt the government will provide any more aid to an industry that cannot support itself. Unfortunately this industry may now be too small to support all of the current airlines. Maybe one big failure allows everybody else to survive....or will there be multiple bankruptcies with clearing of debt and shrinking fleets? International flying will be a huge problem for a while. Consolidation through mergers, bankruptcies, and acquisitions will certainly be in our future. Any guesses?

Mozam

If true, it is a smart move, Looks like another 3T going out . Might as well give some of it to the airlines .

senecacaptain

This is the guy who is CEO of a taxi cab manufacturer. All the taxi companies buy his cars, and many finance thru him.

I think he has a semi-idea of the taxi business right now.

bradthepilot

And yet the taxi cab business he runs is in disrepair; no one wants his latest taxi cab model because it has killed quite a few people and even though he has said everything is now fixed with it multiple times, the overseeing authority still continues to find problems with it.

To say nothing of the other side of his business, which makes taxi cabs of various types for the military. Those taxis have come in late, over budget, and have had many problems to the point where the customer was simply refusing delivery on some models until the taxi factory fixed their problems.

Finally, his taxi cab business is angling for more handouts from the goverment. It has had at least one offer, but appears to be holding out for a better handout. It could very well be that this guy's schtick is playing into that.

Sorry, at this point the taxi cab manufacturer has too many competing interests and is simply not credible.