Jon Rivoli
I am the Devil.
- Joined
- Aug 3, 2003
- Posts
- 2,338
If CAL had decided to operate XJT's ERJs for XJT's pilots pay rate and CAL pilot work rules, .......
They would lose their a$$es. It's much more than pilot compensation.
By the way, SKW is down to about $500 million and also have about $1.5 billion in debt.
Yes, I just read the report this morning. Go back and read it again, the difference is that the prepaids went up a corresponding amount. Pay ahead on leases, insurance and other expenses and you get steep discounts. Not a bad idea when interest rates are effectively zero. Get a ten percent discount on your insurance or leave the money in a CD? You decide.
Now, if I paid my mortgage ahead for the whole year, what does that do to my cash flow for the next year?
For a company with about $3.5 billion in revenues $1.5 billion in debt ain't much, especially if the interest rates are really low, which they are, which you can do when you have a lot of cash.
You will notice that the net of the balance sheet went down by about $700,000, hence the loss.