Originally Posted by
FWAAA
According to VX, it ended the third quarter with just $75 million in unrestricted cash, about half of what it had on hand at the beginning of 2012. Historically, the fourth and first quarters are lean cash-burning quarters for all airlines (2d and 3rd tend to generate cash), so unless Beardy and his friends loan VX some more money, that $75 million won't carry VX for too many months. It's always possible that VX has figured out how to charge more for its seats and thus has stemmed the outflow of cash, but I'm not confident that's the case.
As an aside, UA has almost 100 times that much unrestricted cash (and unborrowed credit line) on hand yet is about 27 times larger than VX. With cash levels that are just 25% of UA's cash levels (on a relative basis), that show the precarious liquidity position in which VX sits.
Interesting. I wasn't aware of that.
Don't worry though ... the way UA's being run Jeff will burn thru that cash and make the ratio compared to VX more even.