Originally Posted by
plainmaker
In fact there is a separation. Different legal entities, different ABN's. There is no obligation of a Principal to guarantee a subsidiary's debt, unless a Deed of Guarantee has been executed by the Principal.
I have not researched the corporate make-up of the organisation........but if the B373's were leased by the parent say and then dry leased to the subsidiary, with operational costs (wages, fuel, airway charges and airport fees borne by the subsidiary in its own name, then that is a very neat way to cocoon the operation from the Principal
As the Zen Master said, "We'll see." Come end of year reporting the subsidiary will have to submit its own financial report if it's a truly separate entity. Do you think that is likely?
Rex didn't go down the path of separating Pel-Air or the Pilot Academy so it would at least be out of character for them to have gone down that route with the 73 ops.