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Old Jul 5, 09, 10:15 pm
A FlyerTalk Posting Legend
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
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Originally Posted by avidflyer View Post
They are a liability and need to be accounted for in some way. I am honestly not sure how they do it but they must.
There is indeed very good reason to consider the FFP operator's available cash to make good on its marketed commitment to FFP customers. Available cash to pay for award ticket redemption demand is indeed a critical element in determining the going-concern possibility/valuation of the FFP/FFP unit. Declining available cash -- including for internal budget allocation for FFP redemption -- is indeed a warning sign for the FFP customers and FFP operator's shareholders.
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