Originally Posted by
Jetscream 32
Interesting and transparent update for sure, especially having started a sale/leaseback with lessors on 50% of the fleet - BUT what happens to the £3 billion cash burn when the return to flying might only utilise 10% of the fleet on 10% of the routes, growing at a tempered rate until all borders re-open and public confidence returns - the fact remains, getting bums on seats is not going to be immediate for 126/189 capacity aircraft so how long can they continue to operate with a less than 50% load factor... How do they last the next 24 months before the fleet can even begin to get anywhere close to load factors they are used to?
That’s not the question here. If it was, easyJet and all other European airlines would have to throw in the towel now without even trying to save the business. Is that what you are suggesting?
The £3bn are various types of credits that are paid back on commercial terms. I thought that was clear or? We have already seen that creditors (aircraft lessors for example) have been flexible with payback terms for companies with healthy finances pre-corona, not so for companies where creditors have had doubts in future of companies.
Also, nothing is indicating that European airlines will be grounded for 9 months and everything is indicating that they will be completely grounded for about 2-3 months. From there ops are likely to start up in steps around Europe with some countries / routes opening up earlier than other. That leaves at least £1.5bn in reserves, or about £200m per month, from start of ops to support the company through the coming 6-8 months.
CP