When will Uncle Sam step in and bail out the airlines?
- Thread starter kmiklas
- Start date
bail out is just a temporary loan as these are private busineses. and have no cash to pay the interest on their loans and leases on the airplanes. these airlines don't own the planes.
just like car payment, the bank can confiscate the planes if you don't make payments or miss one payment. the airlines are highly leveraged businesses. with their airplane leases. and huge fix cost. they are still have to pay for the leases on the planes, rent and employees even if no passengers
just like car payment, the bank can confiscate the planes if you don't make payments or miss one payment. the airlines are highly leveraged businesses. with their airplane leases. and huge fix cost. they are still have to pay for the leases on the planes, rent and employees even if no passengers
What is done with the confiscated planes? Can I buy one on Ebay?
First off, the mainline U.S. airlines actually own most if not all their aircraft. It's more the startups like the former WOW that lease a large percentage of their fleet. To your question, however, you to can lease a plane and crew from any number of firms, here's one that caters to one-off leases https://www.flexaircharters.com/private-aircraft-sales/aircraft-leasing/boeing-737-800-acmi-leasing/
Honestly I think that Uncle Sam has already stepped in and is supporting the airlines with some form of easing.
Their business will pretty much flatline through the summer.
Raise your hand if you're going long on DAL, AAL, or another airline.. what rational trader would EVER take the bid side of this trade right now?
Their business will pretty much flatline through the summer.
Raise your hand if you're going long on DAL, AAL, or another airline.. what rational trader would EVER take the bid side of this trade right now?
Us bottom fishers are almost there. UAL @ $50 is getting attractive.
On the contrary, I think airliners are a great buy. In fact, didn't they finish in the green today, as a subpart of the transport sector?
Summer is when travel demand peaks, and by summer this virus crap will be less intense. Ridership will pickup, income will increase, and jet fuel costs will probably be lagging the increase in demand.
I bet the airlines are stocking up big right now on cheep jet fuel, to lock in major margin gains on operating cost later this year. After all, fuel is their biggest expense.