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Our management claims to have several financial options aside from DIP to help get us through the hard times. If fuel remains roughly what it is now in Sept, i think we'll still be around. Lease backs will free up much needed cash/selling some of our planes too. Never a good thing, but it might prevent us from losing too may jobs. Unless things really change, i do see some furloughs coming our way this fall. I hope that will be our wost case scenerio. We are far from safe at this point, but many of you said we would be out of business already. However, the lack of info coming our way does make me nervous.
I hope I can say, "I told you so." About our being in busniess that is...hopefully no furloughs.
"Terrible harship" is Robert Mugabe lighting you and your goats on fire because you won't vote for his commie thugness. The end of Frontier would simply suck and leave many of us scratching our heads. But hopefully we won't have to see that. Here's to the industry. :beer:
If you are losing money, how does some financing end that fact?
So you claim that SW can just raise the price of their tickets $50 and everyone will still show up and pay?? If so, then why not squeak out a profit over 2007, or did mgt just mess up and make too much that year? Airline tickets, like everything else is an elastic commodity, as the price goes up, less people show up, so it is a losing proposition above a certain price point for any given segment. I agree that subtracting the revenue from hedging is not an accurate representation, but I'm not sure that even SW can raise it's prices nearly $1Billion a year and have the same overall pax count show up.
They may control the BOTTOM level of pricing in any given market, but they do not have a magic wand to do away with price vs demand economics.
LUV
Calm down. I didn't say anything about profits (or losses). All I said is that you can't just subtract hedging gains from profit and wind up with "what would have been". Without hedging, it would have been a different lanscape entirely. Of course I don't think they can just crank the prices as high as they want. Sheesh.
YEAH AND OBAMA and his over seas (middle east) money is the answer for the U.S. !!!????
If you are losing money, how does some financing end that fact?
Frontier is just hoping there is light at the end of the tunnel.
Still here....
Yea, well the light at the end of the tunnel might be the train. It was for ATA, and the tunnel was long. You may be lucky if you get hit early!:bomb:
GOODLUCK DUDES!