Originally Posted by
davidjohnson6
Perhaps worth noting than in the 12 months ending 31 March 2019, Loganair made a profit of £1m on turnover of £120m
Profitable yes, but a 0.8% profit margin when times were good is not particularly inspiring. Easyjet's profit margin was 7% by way of comparison. Any commercial bank lending money would be concerned about Loganair's ability to repay a loan. If Loganair need a loan, it's likely to be measured in the millions rather than thousands
Yep, hardly inspiring financials. The fact remains that on the other side of this crisis, it’s going to be a tough world out there, and Loganair aren’t immune from it by any stretch of the imagination. The company WILL have to reshape And slim down in order to survive even with SG funding. I’ve no idea how much LM have in the bank, but my guess is not nearly enough to get by for too long in the present climate.
If the plan is for LM to serve the English regions moving forward then surely some Westminster funding would be needed for that aspect of the operation if the Scottish taxpayers aren’t going to subsidise that side of things, if it comes to it.