Tpinks |
05-27-2016 05:03 PM |
Quote:
Originally Posted by lakehouse
(Post 2136063)
Can't understand the logic of going to a company that just entered ch 11.
Management always says in these situations we won't shrink...much and everything will be fine.
Every single regional airline ch 11 IN THE last 15 years has resulted with a 50% cut in fleet size.
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I had wrote this earlier this morning and decided not to post it, but since the news of UA agreement coming through, I will go ahead.
As far as I am aware, all of the regionals who filed BK all had the following issues:
* Negative Cash flows, Republic did not have a single negative quarter for the previous 11 quarters I believe it was prior to the filing and had over 100 million of liquidity coming into the BK.
* Were going after the Pilot contracts to reduce costs, Republic said from the get go that they would not be going after the contract and it has already gone through the system and can not be touched.
* Wanted to shed unprofitable aircraft that were flying. Republic wanted to shed unprofitable aircraft that were NOT flying.
When Republic filed, all of our "BK Experts" said Delta flying would be done with YX and they would become either all AA or UA yadda yadda... Yet here we are with a carrier who has received extra financing from Delta, a new flying contract that all of the naysayers said would never come and the rumors of ADDITIONAL delta flying under the new contract.
And now as of today, they have reached an agreement with United. Yeah, this looks like a real doom and gloom airline. People seem to forget that Pinnacle, I mean Endeavor, was just coming out of BK just two years ago and is considered to be one of the best Regionals out there at the moment...
Oh and btw, I have no eggs in any baskets at the moment.
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