Originally Posted by dera
(Post 3029277)
A 6 month emergency fund would be around 18 BILLION dollars in cash. That's borderline criminal waste of resources in a corporation.
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Originally Posted by da42pilot
(Post 3029325)
They can do things like rely less on leasing airplanes (more full ownership) and carrying less debt ie more conservative growth.
And even with 18 billion in cash right now, the airline would have 0 dollars in 6 months, and would be in even more serious trouble. There isn't any kind of buffer an airline can have to prepare for something like what we are experiencing right now. |
Originally Posted by dera
(Post 3029339)
Having that much excess cash with no leverage only makes you a prime target for some mr. Icahn to take you over when hard times hit you.
And even with 18 billion in cash right now, the airline would have 0 dollars in 6 months, and would be in even more serious trouble. There isn't any kind of buffer an airline can have to prepare for something like what we are experiencing right now. A paid off aircraft that is parked doesn’t make you any money, but it bleeds little cash. Basic insurance and parking and minimum upkeep/maintenance. A parked leased aircraft is going to cost you tens of thousands if not hundreds of thousands every single month. |
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