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Old 27th Oct 2017, 21:19
  #43 (permalink)  
racedo
 
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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.
EXIM funded this with interest rates that were tiny on discounts of 50-60% minimum off price and a currency that rapidly swung in FRs favour v US$.

Everybody else was shrinking back but Ryanair bet the farm and won.

US Govt happy, Boeing happy and the workers on production lines even happier as their jobs assurred.
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