Originally Posted by
jethro_027
I’m having a bit of trouble getting past the fact that governments have intervened in the market in a rapid and unprecedented way. I don’t see how there can be a reasonable expectation that VA should have anticipated and prepared for an event of such magnitude. Are there any examples of a government, institutions, businesses or companies that have squirrelled away sufficient cash reserves to survive 6 months of no income.
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It’s probably more the point, if they did not blow and waste so much cash in the last decade, which in return just blew out any cost base advantage they once had over the rival, they could have tomorrow, gone to a bank and asked for $2 billon and secure it against aircraft.
Not only are they $5b in debt, they have nothing left to secure cash against. They have exhausted every financial option available. Everything is maxed out basically.
Even pre Corona, how the heck they were going to finance the upcoming MAX order was anyone’s guess.
Let alone repay, what, $7b of debt? Post the virus.
How on earth do you get out of $7b of debt, from such a small revenue and poor profit history? Anyone?