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Old 14th Oct 2008, 21:16
  #144 (permalink)  
Phil Brockwell
 
Join Date: Jan 2003
Location: Bristol
Age: 54
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It's not always a sign of a problem, we had rumours running about our imminent demise when we had a couple of Senecas and a Kingair for sale. The reality was the Senecas were for sale to roll the cash in them into a CJ and the Kingair owner was upgrading to a CJ2.

Airframes are a commodity, if you don't have the demand or can get a better return on a different airframe type you just roll the equity into something that your company does need, like cashflow or a different type.

The accounts are out next week, this may well just be retrenching to deal with the changes in the current financial market, smart business' will be reducing debt and overhead, it's the ones that are increasing debt and overhead I'd be more worried about.

This may be a situation of smoke without fire, or we may find out next week that there's an inferno, let's wait to see shall we, if losses have increased in line with turnover then it becomes obvious that the model does not work, however if a company doubles turnover and has cashflow problems then they are just like every other growing business in the world.
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