From PaxEx.Aero
A key claim made in the investor pitch is that the company will be able to acquire A380s for its fleet at pennies on the dollar. The low CapEx enables the company to “remove the 27% depreciation and 19% interest costs” from its budget.
Once acquired, the planes will undergo a full interior retrofit. Global Airlines expects to fly with five classes of service on board. On top of the traditional First, Business, Premium Economy, and Economy class cabins the company intends to add a new 15-seat “Gamer Class” option for passengers to play while in flight.
This full retrofit is expected to cost just under $4 million. That number is dramatically lower than typical industry costs for a full cabin retrofit with new seats. It is unclear how the company arrived at this number. Perhaps it is possible with used equipment, but that is counter to what the company is pitching.
The most impressive claim, however, comes as the company converts these aircraft from inexpensive acquisitions to top-dollar assets. An aircraft that cost just $8 million to acquire and retrofit is, by Global’s reasoning, fairly valued at $60 million in its balance sheet. The company offers zero justification for this appreciation in the value of the aircraft. It also appears to drop their value to just $15 million as the fleet grows to 90 frames. Again, no explanation is offered for this dramatic shift.
It does, however, claim to have backing for $50 million in loans, backed by three aircraft. There is no indication that the loan was ever drawn, mostly because until just a few weeks ago the company did not own three planes.
I am so enjoying watching this. Much more fun to watch it from the start, than simply hear about it when it all stops. If they are inflating their balance sheet - then there are several legal actions that can be brought.