AirTran seeks to reassure investors it has cash

[Eagle757shark]

AirTran seeks to reassure investors it has cash

Fri Apr 11, 2008 6:39pm EDT
WASHINGTON, April 11 (Reuters) - AirTran Airways, a unit of AirTran Holdings (AAI.N: Quote, Profile, Research), said Friday its liquidity has improved, boosting the company's cash and investments holdings to $358 million on March 31, 2008, compared with $326 million at the end of 2007.
"We have ample balance sheet strength to support our operation," AirTran Airways chief executive Bob Fornaro said in a statement.
The company expects its liquidity to strengthen further in the second quarter of 2008.
AirTran issued the statement after its shares fell sharply Friday on news of Frontier Airlines Holdings Inc's (FRNT.O: Quote, Profile, Research) bankruptcy filing and continuing maintenance problems at other airlines that have grounded thousands of flights in recent days. AirTran ended trading on the New York Stock Exchange down 34.5 percent at $4.13 per share. (Reporting by Julie Vorman; Editing by Andre Grenon)

 

[Eagle757shark]

One thing that AirTran has in its favor is Aircraft orders. Since AirTran purchased their 737s at a great rate, turning around and selling those airplanes will help AirTran raise cash. In the short term while fuel is at an all time high, those airplane orders may be a blessing. AirTran was able to go from $326 million in cash at the end of 2007 to $358 million in cash at the end of the 1st quarter. Now that it looks like the Delta and Northwest merger will happen really soon, AirTran will be able to see how the consolidation dance shakes up and who their potential dance partner may be. The key for all airlines is to hunker down and live to dance another day. Right now AirTran has a way to raise cash, selling new aircraft that they have ordered.

 

[D-Bo]

One thing that AirTran has in its favor is Aircraft orders. Since AirTran purchased their 737s at a great rate, turning around and selling those airplanes will help AirTran raise cash. In the short term while fuel is at an all time high, those airplane orders may be a blessing.

It's been said more than once before that the large 737 order is what helped AAI get into this mess in the first place.

 

[CatfishVT9]

Sooooooo.........ordering airplanes caused the dollar devaluation, stock market fall, stupid loan practices and F-in oil speculators to push oil to $110 a barrel?????????????

I must be missing something.

 

[c9skytrain]

D-Bo, Who said that before? Got a link showing such a statement? I'm just curious.

 

[D-Bo]

Sooooooo.........ordering airplanes caused the dollar devaluation, stock market fall, stupid loan practices and F-in oil speculators to push oil to $110 a barrel?????????????

I must be missing something.

Having too many airplanes and not enough routes where they can make money is what you're missing.

 

[D-Bo]

D-Bo, Who said that before? Got a link showing such a statement? I'm just curious.

Bethune in 04.

 

[Ty Webb]

Bethune in 04.

Looks like this Village has a new Idiot. All Hail D-Bo . . . . flightinfo's newest tool. Thank god you're not on our seniority list. . . . . doom and gloom- you're management's wet dream. A bona fide "Useful Idiot".

AirTran has been profitable every year since 2000. We make most of our money in the 2nd and 4th quarters, which means we will be improving our cash position for the next three months, and six months later, we'll be rebuilding whatever we lose in the 3rd quarter (if anything).

We'll be s#!tt1ng in tall cotton . . . You, on the other hand, will still be an Idiot.

 

[Eagle757shark]

Having too many airplanes and not enough routes where they can make money is what you're missing.

AirTran is nimble and can make adjustments according to the economy pretty well. The airline has been doing that over the last 8 years. When AirTran purchased their 737's, the market was pretty dead back in 2003. They were able to get them at a premium price. In today's market taking delivery of those aircraft and then selling them to make a profit allows AirTran to raise cash. Right now that may be turning out to be a blessing for AirTran. The airline is scheduled to take 8 airplanes this year. Everytime AirTran takes a new airplane, they have to write Boeing a check for 8 million dollars. Now if they are able to turn around and sell that aircraft on the open market at a profit, how is that a bad thing in this current economy? Every airline is trying to make adjustments in their business plan because of the high cost of fuel. This summer is going to be a tough summer for all business'. I believe the talked about consolidation will kick-off here real soon. Then hang-on because it is going to be one HELL of a RIDE!

 

[D-Bo]

Looks like this Village has a new Idiot. All Hail D-Bo . . . . flightinfo's newest tool. Thank god you're not on our seniority list. . . . . doom and gloom- you're management's wet dream. A bona fide "Useful Idiot".

AirTran has been profitable every year since 2000. We make most of our money in the 2nd and 4th quarters, which means we will be improving our cash position for the next three months, and six months later, we'll be rebuilding whatever we lose in the 3rd quarter (if anything).

We'll be s#!tt1ng in tall cotton . . . You, on the other hand, will still be an Idiot.

You're confusing doom and gloom with the truth. try your best to talk sh*t. But while you're at it, prove me wrong. Fact is back in 01 and 02 many of the LCCs smelled blood in the water. They thought the legacies were going out of business and thought they'd put themselves in a position to pick up the scraps. When that didn't happen many of them had to find somewhere to make money with all these new jets. That's when business got tougher.

F9 sees it now. B6 sees it now. You can fly only so many flights out of JFK, DEN, and ATL and make money consistently with large airlines matching the price in this economy...or keep cash on hand at a high level.

So, in the mean time, dispute my point or STFU. And trust me. You'll be better off if you lose the emotional attachment to your airline. All they do is pay you. They aren't your family. And they aren't above F'n you over or getting into a bad position cash or business wise.