Originally Posted by NICEDUDE66
From today's Washington post.
"It's clear to us that Flyi's business plan isn't working," Ashcroft wrote.
Anyone can guess at something. Let's hear the facts, why is it clear to "US." Has FLYI not done the impossible in 6 months?: Rebranded an entire airline, changed a corporate culture of over 4,500 employees, operated the largest and most efficient low-cost hub in the WORLD with over 600 flights a day with an ontime performance near 80%. Folks, when someone gets the spotlight by making claims that have not been backed up, we have to question his motives.
The bankruptcy warning from UBS came before the airline reported that its September load factor -- the percentage of seats it sold -- was 44.4 percent, down from 45.5 percent in August. That compares with September load factors of 76.6 percent for JetBlue Airways and 63.2 percent for Southwest Airlines. Both are low-cost carriers.
So FLYI has been adding capacity, yet their load factor has not changed from the previous month. FLYIs load factor has not changed when almost all other airlines had a lower load factor in September, the worst travel month of the year. Most other airlines are reducing capacity and reporting lower load factors. A question for the history buffs: What was Southwests load factor after four months of operation, how about JetBlue? This analyst went on to say that he was 65% certain that FLYI would declare. Sounds like a, "I'm not really sure, you know, but if I had to guess on this one I am leaning towards, yeah they will probably go ahead and file."
In this same article, Ashcroft said that FLYI has all of the Dorniers in storage. A simple trip to the Delta website will show that they are still operating out of Cincinatti. How can you call yourself an analyst when you aren't even analyzing? This is the same Ashcroft who was all over the analyst reports saying he is 90% sure Mesa will win a hostile takeover less than a year ago. Folks, you got to question his motives. Wouldn't be surprised if one of his buddies is gobbling up as much FLYI stock as he can since Ashcroft just put it on sale.
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