I love that some people thought we would be profitable. Improving though which is good.

Now if McConnell and Pelosi would take their thumbs out of their asses and get a stimulus done maybe we won’t all be out on the street in 6mo. If AA files for bankruptcy lots of blood will be shed throughout the industry.

 

Agree, but a $2.3 million a day burn with over $2 billion In liquidity gives Spirit substantial time for recovery.

Not going to happen. Way too late. Votes are already being cast. Politicians now fall into one of four categories:
1. Don’t give a ****about voters for a year and six months.
2. Don’t give a ****about voters for 3 years and six months.
3. Don’t give a ****about voters for 5 yearS and six months.
4. Retiring, and don’t give a ****about voters period.

 

term limits are the only answer.

 

[QUOTE=Excargodog;3151421]Agree, but a $2.3 million a day burn with over $2 billion In liquidity gives Spirit substantial time for recovery.

...In keeping with the thread title....
That’s interesting...F9 has 1 billion in reserves and cash burn is 1 million a day...the ratios seem a bit convenient now doesn’t it?

 

[QUOTE=Excargodog;3151421]Agree, but a $2.3 million a day burn with over $2 billion In liquidity gives Spirit substantial time for recovery.[=12pt/QUOTE]

No matter how much liquidity (much of it debt) they have they won’t want that cash to burn for long. If the passengers don’t come back by summer things will happen. If any of the big airlines file for bankruptcy before then things will happen sooner.

 

[QUOTE=Qotsaautopilot;3151663]Well, clearly The Big Three are in trouble with the lack of business and international flying and multiple fleet types. Way too many aircraft inappropriate for typical domestic flying sitting parked somewhere while their normal pilots are furloughed (or about to be) and their most expensive pilots (highest hourly wage and most vacation time) are getting the first new type rating they’ve gotten since they left 727s. I’m reasonably certain the LCC/ULCC model will be doing fine by Q2 2021, not 2019 numbers, but making money.

And while it is certainly possible for a Big Three bankruptcy to have ripple effects - and I personally believe it would - I think it woukd likely not hit the LC/ULCC people until contract amendable time.

 

How many pay cuts did Southwest take when the legacies were in ch.11?? The answer gives me some level of reassurance....

 

A point, definitely a point.

 

Exactly. Some people on here seem to think of a legacy files Ch11, we then need to expect some negative impacts to us. I would suggest those people spend an hour and listen to our recent earnings call and see what’s going on.

We are not a legacy carrier. Our highs aren’t as high as their big profit sharing checks but our lows aren’t their lows. As expected, the ULCC segment is showing the first to rebound and the first to be profitable.

So if anyone thinks AAs issues in the near term affects Spirit pilots, probably misguided at best.

And I’ll happily wait for section 6 contract talks when management makes to argument that we now need to take less money because the most mismanaged legacy carrier can’t make it work.

We are a zero concession airline. We did not entertain concessions while other carriers did, and can’t imagine why we would ever entertain them based on what we are looking at now. The company even said they won’t be concerned with cash burn going forward because as they come out of this pandemic, cash burn isn’t an effective tool for monitoring success or failure. Meanwhile AA is still trying to get their cash burn in the 20m a day range

Call me crazy but I would rather listen to the tone and planning from our upper management on an earnings call vs a certain someone on here who loves to conflate an AA bankruptcy as being a “blood shedding” event for the industry, including us.

 

I will also add that in 2011 when AA filed for BK. Within 1-2 month of that, Spirit placed and order for new airplanes.