They are basing getting profitable by raising market share in the $200 class from 15% to 20%, sloping to the $600 class from 1.5% to 15%. Maybe getting another 5% @ $200 is achievable, but getting 10 times as many people @ $600 and over 15% of everyone in between without a new pitch & more BFSs, new gate people, food in the airplanes, better reservations options (person you can talk to) is not going to happen. I heard UAL didn't want NK planes because it would take too long and expensive to reconfigure them.

Napkin math: for the first 6 months of the year, NK lost $350M, flying 12M people at $108/person. Breaking even would have required another $30/person. Focussing on getting an extra $50 has a better chance than focussing on an extra $500...

You’re right increased seat pitch was mentioned. That would probably require fewer seats. I think it would take actually offering different seats in addition to the added leg room. We have two hour seats. They are absolutely miserable beyond that amount of time.

This is all smoke and mirrors. The bond holders know then’ll make more money selling the assets piecemeal than all at once via chapter 7 liquidation. So they injected some money to keep the operation going while they figure out how to lose less money.

This injection was to avoid chapt 7 and was a lifeline. Now they actually take control of the company, which is a big deal; they can start selling off everything. Ted's job is to get $3.8m bonus to ride it to the end and keep order here, not create panic

Ted got his parachute ahead of time.

What assets?

Full company fire-sale would be hard to accomplish and get divided many ways. If the bondholders take the company, they get full access to divertable cash flow, the headquarters and the opportunity to more deliberately burn the furniture.

As for dollar general vs target. True, the old crowd didn't pay all the bills, but they paid 95%. Throw them out and now nobody is paying the bills UNTIL the target shoppers show up.

This 100x over. The damage to the brand is done. You need a new name and new paint, otherwise too much damage done to change your audience.

I don’t see it going this way. Explain how they control the company? Are they getting 51% of the equity for their forgiven $800m in debt and $300M in cash? Are they taking the company private? It’s also not one bond holder. It’s a collective so they each have smaller pieces of the pie of the new equity not one entity w one controlling chunk. I’ll have to go back and read the RSA

I think they're getting all of it. That's the deal. Current stock goes away - new stock goes to bondholders.

I tried to go back and understand it. Way to complex for me to understand. They are definitely getting 100% of a $350M equity offering but I’m not sure what that means in regards to control of the business. I couldn’t find an answer.

It would be nice if ALPA could break down the ownership of the company in “the plan” upon exiting bankruptcy in March.

Yep that’s basically it. And Spirit put up the HQ as collateral. If it all goes as smoothly as planned the bondholders will come out with a fantastic deal.