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Showing posts with the label rent

Airlines should maximise income now instead of being satisfied with minimising cash burn

All airlines should should take charge of their own destiny now and do their utmost to maximise income now instead of hibernating the pandemic and hope for better times. Arilines have massive set costs in the form of either massive leases or fleets of owned assets that rots fast without regular maintence and use. Always remember airline seats spoils as fast as soft fruit. Todays potential income can't be earned in tomorrow instead. And if you can't fly people there is plenty of other stuff that needs transporting.  A christmas present sent from Irleand to Norway in mid November arrived yesterday the 24'th of February. That is over 3 months in the post. Another one sent the same day from Ireland to Greece came back today after the airline contunously refusing to freight it. That is a complete let down by most airlines of their previous commitments to bring post around contributing to a worldwide organized and fast postal service. Every time I bing Cargo up in diverse forums

Converting plane orders to cash against leaseback come back and bites you

Financing your airline by selling your planes on delivery at price+ to a leasing company against paying extra high rents for a contracted amount of years, is proving to be a bit of a trap in times when you can't make an icome from said planes. A company like Norwegian have proven that to all when they saw the necessity of handing over control to their lenders by converting some of the debt to shares and making the before 100% shareowners into mere 5% owners. This type of financing is more like the old fashioned cropholder, but on a company level. A practiche that ultimately lead to you becoming a pure tenant of your own holding, and possibly to eviction from it, the first time the harvest failed.