Originally Posted by
wisecaptain
LCCs
Wizz Air and
Ryanair lead the way, with liquidity at 48% and 47% of revenue – equivalent to 176 days and 170 days of revenue respectively.
I read somewhere that Ryanair are incurring costs of less than a million Euro's a month.
At the other end of the scale is
Norwegian, with liquidity at 7% of revenue, or 26 days
Any one know what VS has ?
The UK Govt will not float very low levels of liquidity with the potential loss to Tax payers when subsequently going into administration..... Boris would lose a lot of supporters
VS I fear is soon to become UK airline history.
Perhaps Ryanair will rebrand it ?
Liquidity doesn’t mean too much.
What matters is parent companies, credit lines and/or governments’ help.
Even if you have 10 months liquidity in the bank which a few airlines do have there is no way it’s going to be enough.
Also, surviving alone won’t be enough as when they slowly start opening countries the losses will be deep as there will be months and months of reduced flying with few (scared) passengers.
Most airlines will survive but it won’t be thanks to liquidity. It will be thanks to shareholders and governments.
This is a good time to be in solid company, not necessarily a rich one.