Who's next?

[IronCityBlue]

So which legacy airlines have the best balance sheets, and why?

 

[737 Pylt]

Like I said, there is no tolerance for negative comments about Delta on this forum.

Look General, sometimes a parent has to fact the fact that they have an ugly kid. All the kool aid in the world won't fix your balance sheet.

And, private, all the flight time won't get you hired anywhere but Starbucks!

737

 

[Propsync]

So which legacy airlines have the best balance sheets, and why?

Forget it, this thread is now for Tanker Clown to aggravate uptight FI users, not a place for discussion. Start a new thread.

For the record, I enjoy the Tanker Clown posts. The rest of you follow it like lemmings to the ocean. Ignore it long enough and it goes away.

 

[9rj9]

next

Skybus is next to go under. VP of OPS quit today...going back to Delta for another 500K VP job

 

[~~~^~~~]

Do you know he's going back to Delta?

My bet is Alitalia will not be around long. ~ 400 million in cash, burning 200 million a month. AF/KLM pulled out of merger talks.

 

[Andy]

Let hope that Skybus is one of the next ones.

I think that UAL and a few other mentioned above are in deep doo doo as well.

For it's size, Skybus was very well capitalized - somewhere around $175M. Unless Skybus' investors (IIRC, there were several Columbus businesses that provided the startup money) pull their money, I don't see them going away any time soon.

UAL had $3.55B cash on hand at the end of Q4. There are others with less.

 

[PlaneDrvr]

UAL does have a lot of cash. But they need to because they are bigger than DAL, CAL and NWA, etc. I'm not sure what "metric" is the best for available cash as it relates to size and debt (and other factors) but several analysts have commented recently that DAL, NWA and SWA are best positioned to ride out a tough year, in large part because of their cash. However these same analysts put UAL below those 3, and I'm sure everyone is well aware of UAL's cash position.

So if DAL is better off than UAL, or if UAL is better off than DAL, why, specifically?

The measure that I have often heard that analysts use is the amount of 'cash' as a percentage of total annual revenue. If a company has at least 20% or more of annual revenue in cash; that is seen as a good position. However, you also have to take into account 'Total debt' as in a period of declining revenue (income), it takes a greater % of revenue, just to service the debt.

Maybe someone can do the research and post all of the #s for the legacy carriers; total annual revenue, total cash, then cash as a % of revenue. Then you will have something to compare the financial health??

For what its worth.

DA

 

[PlaneDrvr]

For it's size, Skybus was very well capitalized - somewhere around $175M. Unless Skybus' investors (IIRC, there were several Columbus businesses that provided the startup money) pull their money, I don't see them going away any time soon.

UAL had $3.55B cash on hand at the end of Q4. There are others with less.

That is what ScareBus (skybus) had when they started ops; do you know how much 'cash' they have right now??

I recently read where they were 'cutting back' flights at their CMH and GSO hubs, in order to preserve cash resources.

For what its worth.

A more interesting question.

DA

 

[jetjock6]

Last edited by Propsync : 04-01-2008 at 12:15. Reason: General Lee's overwhelming compassion for helping people that make honest mistakes.

Now that's funny. :laugh: :laugh: :laugh:

 

[Andy]

Planedriver, Skybus isn't a public company so it's not easy to find that answer.