Originally Posted by
airzim
It would be one thing if this arm chair CEO was even entertaining. It's just redundant complaining with a complete lack of macro understanding of the industry and it's challenges.
So exactly what do you believe to be incorrect in this quote ?
"LK's biggest failing is that he hasn't done anything, one way or the other, to better position CO for the long-haul"
As I demonstrated the business has stumbled along at breakeven over a 5 year period, without significant change, while a major competitor (WN) has grown slightly faster while making a reasonable return. The result is CAL has pretty close to zero nett worth in the balance sheet today, so it's vulnerable to pretty much any unforseen event - terrorism, rising fuel prices, a prolonged grounding for technical reasons, a significant strike, a failure of a credit card processor - pretty much any of these (and others) could drive the business back into bankruptcy. You can ride out these problems if you have a profitable business and a buffer in the balance sheet. CAL has neither.