As usual the Guvnor is busy reading the worlds media for something to post. To pick on BA is strange as he needs to look closer to home. The recent issue of Aviation Week 24 Sept carries an article that shows the US carriers in far greater distress than BA.
It indicates that the cash reserves of the various carriers are as follows:
AirTran < 15 days
CO < 15 days
NW < 50 days
Amercia West < 52 days
US < 52 days
DL < 74 days
UA < 81 days
SW< 309 days!
This was as of 17 Sept.
Clearly the coverage suggesting poor management does not understand simple maths.
For airlines to buy (or lease) an aircraft of lets say an average US$100m costs about US$900,000 to service the montly debt and that is without paying insurance, fuel, crew, landing fees etc etc. Multiply that by a fleet of say 100 aircraft it is a lot of money to find each month to have an aircraft to fly. Cut the loads, fill with low yield traffic means cash reserves dry up p-d-q.
The Avweek article also talks about asset values each acrrier has to sell if cash is needed. Not pretty reading either! Selling aircraft is an option as no one is buying.
The fact is a lot of airlines are broke by normal standards but the banks and leasing companies dont want to let them go as there is nowhere for the planes to go.
In this part of the world, Asia only QF, CX & & SQ have cash in any amount. The likes of MH, TG,
PR, CI are all but broke.
When will the Guvnor have an original thought?
Boeing Boeing.... gone!
