Originally Posted by
Superpilot
There are countless examples of companies who run up extreme debt during expansion. My own had a comparable debt with less than 1/3 of the aircraft Norwegian has. It's taking a huge chunk of this debt every year right now.
What did RYR buy 150 737s with when it expanded after 9/11? Aviation is one of those industries where the value of the primary asset (aircraft) is often many times the total annual revenue. Debt is expected and welcomed by banks that are happy to loan the amounts. If they're happy to do so, what cause for concern do we have? The repayment plan is what matters.
RYRis a very highly geared company with a gearing ratio I would guess very nearly 100%