PPRuNe Forums - View Single Post - Growing Evidence That The Upturn Is Upon Us
Old 7th Nov 2008, 09:19
  #1160 (permalink)  
3Greens
 
Join Date: May 1999
Location: Runcorn,Cheshire,England
Posts: 195
Likes: 0
Received 0 Likes on 0 Posts
Spinnaker

I trust you are aware that when an airline is said to have "XXXbillions" in cash reserves it doesn't mean MOL could plug his debit card into the hole in the wall and hey presto, the balance shows XXXbillion. Most of it is cash predictions based on forward bookings that may or may not be already paid for. The problem at BA is that forward bookings have dropped sigificantly as they have at Ryanair. The often mooted £1billion cash reserves is used as equity to get loans from the banks for such aquisitions as you suggest...problem is the banks aren't lending at the moment - not even to Ryanair. I'm afraid the global domination you suggest is fundamentally flawed.
3Greens is offline