Aitran stock offer.

[Secret Squirrel]

Airtran has other alternatives that would worry me more. They have 65 737"s scheduled for delivery in the next 5 years. Because there is such a huge market right now for these airplanes, and Airtran got such a great deal when they bought them when nobody wanted them, each delivery is worth between 8-11 million dollars if sold. That is around 600-700 million dollars Airtran has access to if they REALLLY needed it. The good thing is they think this bleak time will turn around and they will still have those planes and be ready to expand again. They are using this stock to keep cash high. If Airtran starts to sell a buch of these 737 deliveries then I would be much more worried.

 

[meanstreak]

They are taking no deliveries next year. It was supposed to be 15. I think I would be worried, I know I am.

 

[jmreii]

Don't worry about them, worry about that Ray Neigl or whatever his name is. He'll come out with another doozy to try and put the stock away after getting it de-listed, and the next day saying "oh gosh fellas, I guess they're not that bad off". That's what I'm waiting for. After that, he'll move on to another carrier and play the same game to make money for himself, ruining company after company!

If you don't know how to run a business or airline operation that is not the fault of an airline analyst. people will always second guess you; it is your job to make it happen.

 

[Secret Squirrel]

They are taking no deliveries next year. It was supposed to be 15. I think I would be worried, I know I am.

Oh I am worried, but those 15 are just pushed back. They only sold 2 (maybe an addition 2) delivery slots for a profit of 8-11 million dollars per plane.

But we will see. I have my house in order for a furlough notice. I just hope I don't need to go that direction. I might call it quits on this industry for good.

 

[Andy]

Can somebody explain to me why we are doing this?

Do we need money in the bank to stay out of Bankruptcy?

To increase liquidity.
Yes.


It's a smart move by Airtran management. It would've been smarter to sell the 15 delivery slots for next year, rather than delay delivery.

Two words: Liquidity now! (stolen from Seinfeld's 159th episode http://en.wikipedia.org/wiki/The_Serenity_Now )