Originally Posted by
nomess
It appears they have today reduced OOL flying to one flight per week for most, and axing a few others. That should assist the cash burn, but revenue falls off a cliff. Not really a win win situation.
Some questions to be asked around financial health and the AOC process. You need to prove to the regulator that you can provide a stable financial operation for at least 3 years. CASA requires at least 3 years cash flow forecasts, and details around cash flow shortages and solutions during the initial years. Wet Leasing or Engineering cost blow outs, need to be proven that they can be dealt with as required.
To have Sebastian Hams from Korda Mentha now getting involved, only 12 months into operations, is unacceptable. If you think this is just a "financial advisor" role, operations normal, you are delusional. By all means, I hope I am wrong, but some serious questions need to be asked if this collapses. It should a) Have never ever been approved and b) what cash details did they submit?
Advising CASA that 777 Partners has plenty of cash and will fund us for years ahead is not a claim that I find foreseen. What happens if they simply cut you off? Who can provide the funds to safety continue to operate. I also have concerns about over forecasting the success of this model also.
Many questions to be asked here.
I don't think it's a huge leap of logic to say that KordaMentha are in there to assess the viability of Bonza and/or their affiliates as a going concern. Can't imagine it's going to be a resounding yes unless someone with an ego decides they want to p*ss money against a wall and bankroll them for a while. 777 has lost access to its largest source of funding, and the lessor can't wait to get its jets back and send them to an airline that will happily pay higher rates, and probably their rentals on time.