Article says US Airways has thinnest cash position of any major airline

[FWAAA]

Piney, can you explain why our cash position is the art of deception?? I am curious on your full synopsis, or the plane truth. I thought our profit was good news for US, and why that is gobbled up with special item expenses, can you elaborate...? :unsure: Thanks

I'm not PineyBob, but you've got something backwards there.

US' most recent GAAP profit was not "gobbled up by special item expenses."

The "profit" existed solely because of some special item income items (paper hedge gains on unexpired fuel hedging contracts). US didn't profit during the second quarter unless you count some fantasy paper gains that may or may not ever be realized. In reality, US lost nearly $100 million, or more than $3 million per day in the second quarter.

The cash position trumpeted by Parker the Liar was deceptive because it included the restricted cash and, even more telling, the auction rate notes which cannot be sold and therefore have no current value. Subtracting those items, US had but $1.5 billion of unrestricted cash on 6/30/09, less than any other major airline.

 

[freedom]

I'm not PineyBob, but you've got something backwards there.

US' most recent GAAP profit was not "gobbled up by special item expenses."

The "profit" existed solely because of some special item income items (paper hedge gains on unexpired fuel hedging contracts). US didn't profit during the second quarter unless you count some fantasy paper gains that may or may not ever be realized. In reality, US lost nearly $100 million, or more than $3 million per day in the second quarter.

The cash position trumpeted by Parker the Liar was deceptive because it included the restricted cash and, even more telling, the auction rate notes which cannot be sold and therefore have no current value. Subtracting those items, US had but $1.5 billion of unrestricted cash on 6/30/09, less than any other major airline.

Even if all you say is true then our burn rate at 100 million a quater isn't all that bad

 

[FWAAA]

In reality, US lost nearly $100 million, or more than $3 million per day in the second quarter.

Whoops! Correction: US lost more than $1 million a day, not $3 million a day. Shouldn't post before coffee on Sunday morning.

 

[BoeingBoy]

Even if all you say is true then our burn rate at 100 million a quater isn't all that bad

I think FWAAA would agree that profit is a different animal from burn rate. In the last 3 quarters and a little, US has burned nearly 4 million per day.

Jim

 

[Poug Darker]

I don't know. One competitor (WN) is better than two (WN + F9). And assuming Southwest drops the regional flying, drops the inernational destinations and reduces some capacity and perhaps cuts routes such as Denver - ATL. It might actually help United.


I think United needs an exit strategy from Denver. Shame DCA and IAD hurt the cause of a possible US/United hook up.

Southwest WANTS the international flying! And they'll probably expand it. Don't count on SW+F9 helping UAL at all.
The big deal with the US-UAL merger in the DC Metro area was that either US or UAL had the majority of market share in all three DC Metro airports - BWI, DCA, IAD.
Not so anymore - the DC Metro population has the choice to fly SW out of BWI. Anti-trust issues should be satisfied there.
What is really the problem holding up a merger between US-UAL. Let's see...it isn't the employee ownership thing at UAL, that doesn't exist anymore. It isn't DOJ anti-trust. It's probably $$$. And who winds up with the managment reigns after the deal is done - doesn't it seem odd that Mr. Tilton, who has publicly stated that he does not want to be a CEO in the airline industry also doesn't want to turn it all over to the dougie and scooter show.
Carpe Diem.