JayPee28bpr,
[QUOTE]Aer Lingus has shed some €400 million in cash so far this year/QUOTE]
I'm almost sure we had this conversation in an other forum recently. I will dismiss this sensationalist nonsense that I hear far too often in many lazy media articles about ALT's uncontrollable cash burn.
ALT Cash June 2008 803million euro
ALT Cash June 2009 440million euro = 363million euro burn
However,
2 Aircraft bought for 184million euro CASH ( 75% returned to balance sheet after first half 2009 results announced in a leasing deal ), and
97million euro once off redundancy deal ( resulting in staff cost savings ).
So, 363million euro burn ( minus 184million euro and 97million euro ) = 82million euro ( mostly bad fuel hedging ) which is a more transparent figure when trying to decide if investing in ALT is worthwhile.
82million euro is not 400million euro. It still is a worrying cash burn and needs to be addressed, however, considering the industry is due to lose 11 Billion euro in 2009 ( IATA ) in possibly the worst ever downturn to hit the aviation industry, I believe ALT to be well situated, with a conservative balance sheet, and strong cash reserves. Project Greenfield is about to deliver
another 100million in savings on its cost base.
No wonder MOL and Ryanair want to buy ALT. Would I invest, I already have....
rgds
no slot