Well, a loan or a guarantee, whatever you want to call it, I remember management being excited enough to communicate to the pilots when they had paid the entire $1.9 billion back to BH. I was always amazed at how quickly they paid it back despite them constantly complaining about being strapped for cash and not being able to afford any QOL increases for pilots.


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The company never said loan. It was debt. We wrote down 1.3 billion as debt for parked airplanes. Then when we got rid of them, that debt was gone. How else do you think the debt was paid off so fast? Otherwise we must have really been raking in the money to pay off a 1.9 billion dollar loan off so quickly and then going forward would add up to be a lot of money.

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They were raking money- those airplanes they sold off at the bottom of the used aircraft market were not worth 1.3 billion. I doubt that all the airplanes disposed over the last 11 or so years brought back 1.3 billion combined. We ride those things hard and a lot of that time was a horrible used market at least partially bad because of the sheet number of airplanes we turn over. I do understand there was a shell game over the numbers to make RS look bad and DS look good, but there was also a lot of new aircraft sales and profits from operations while paying us a lot less before the 2015 contract. Even after the 2015 contract they continued to rake it in and paid the dividends.

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They didn't have to sell the aircraft at the write off price to recoup the money used in the write down for the debt if I remember correctly. The removal of the asset erases the write down asset price going toward the debt. We did have around a 600 million loss or so, but as you said, we recovered from that.

With that said, things were not going that well with Operations until the 2018 IBB. No it looks like voting in the 2018 CBA was the best thing we did. Sure is nice having the 30k signing bonus in the bank for a rainy day.

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I have zero worry he’ll sell us. We’ve been paying him a pretty return for a while and we’re debt free. What other aviation company can say that?


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Makes NJA worth less. A lack of assets and debt to leverage makes them a risk to loan money to which is why BH had to do it last time.

BH does this with all their companies. It allows them to get a very low interest rate. An interesting fact though is that prior to Sokol coming on board, we never had to pay the fee to BH. Alice Schroeder mentioned in her blog site that she had never heard of this before. Obviously Warren believe in RTS so much he waived the fee so RTS could build the company. There was a lot of good information on her blog site when all this was going down when Sokol ran us but she has taken it down.

In the end, it probably was the best thing for RTS to get replaced as once his no compete cause ended he started up a helicopter leasing business he then sold to GE for 1.3 billion while Sokol got canned from BH for unethical behavior.

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FIFY. BH isn't giving loans to its companies out of kindness.

Sounds like wishful thinking on your part.

he is very “ concerned” , for us , whoever he is, wherever he is. What a guy : )