Hp/us Strongest New Carrier?

[usair_begins_with_u]

The new airline will have about $6 billion in net debt, or about 90 percent of its total capitalization, America West Chief Executive Doug Parker said on Friday.

Lets think about that for a moment. Everyone is familliar with credit scoring right? The riskier you are as a borrower, the higher your debt payment. I doubt the combined entity is paying AAA interest on the debt.. I'd guess their avg rate is close to 10%. Thats $600 million in interest payments, without touching principal. How is that stable? This merger is nothing short of a huge financial gamble... I understand why U wanted this to happen, but not so sure about HP? I wonder if this was something they were forced into by GE Capital?? Any insiders care to share?

90% is pretty freaking leveraged...

Under terms of the deal, America West shareholders will get a 45 percent stake in the company, the new investors will have a combined 41 percent and US Airways will have 14 percent.

14% of the new company... Damn. A rose by any other name would be called "liquidation". But hey, they kept name right?

 

[SpinDoc]

Hp/us Strongest New Carrier? How So?

Did you, or did you NOT read the press
releases from yesterday?

Plain and simple. Doug and Bruce said
US/HP are the strongest new carrier, so
that is what they are. Actually, they are
the ONLY new carrier at this point in
time, so they can lay claim to that.

It's really all so simple to understand.

 

[delldude]

Hp/us Strongest New Carrier? How So?

Did you, or did you NOT read the press
releases from yesterday?

Plain and simple. Doug and Bruce said
US/HP are the strongest new carrier, so
that is what they are. Actually, they are
the ONLY new carrier at this point in
time, so they can lay claim to that.

It's really all so simple to understand.

[post="271625"][/post]​

two one legged men cannot run too far......
classical amellican venue........in debt up to their eyes...the least little fart and its all over...osama.....osama..... B)