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[Speculation] Risk of AS Bankruptcy and Liquidity for Ticket Refunds

[Speculation] Risk of AS Bankruptcy and Liquidity for Ticket Refunds

Old Mar 23, 20, 3:25 pm
  #1  
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[Speculation] Risk of AS Bankruptcy and Liquidity for Ticket Refunds

What are the FT AS community members thoughts on the risk of AS filing for bankruptcy and thus all funds for future flights are lost. I have trips planned throughout the summer and donít want to purchase too early. Assuming the travel issues associated with COVID 19 stabilize and the country returns to some sense of normality (new normals likely)
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Old Mar 23, 20, 3:44 pm
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Originally Posted by Xrayman View Post
What are the FT AS community members thoughts on the risk of AS filing for bankruptcy and thus all funds for future flights are lost. I have trips planned throughout the summer and donít want to purchase too early. Assuming the travel issues associated with COVID 19 stabilize and the country returns to some sense of normality (new normals likely)
I have virtually no concerns about Alaska being able to weather this storm...not so confident about other airlines such AA or UA.

https://seekingalpha.com/article/433...ve-coronavirus
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Old Mar 23, 20, 5:39 pm
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1. Depends upon how long this lasts.
2. Bigger risk is likely that the network will be much smaller and your desired destinations may not be served for the foreseeable future.
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Old Mar 23, 20, 8:59 pm
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Alaska Bailout

Should Alaska get a bailout? To me it seems pretty obvious [that it should], but what are your thoughts and, if so, what strings should be attached?

Last edited by dayone; Mar 23, 20 at 10:24 pm Reason: Redact and edit to make AS-specific.
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Old Mar 23, 20, 9:04 pm
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If you google airlines stocks to invest in you will see a breakdown of why Alaska compared to AA and Delta is superior in its position both for its lack of debt and ability to create cash flow. I agree the airlines are all in trouble but the stats say that Alaska is at the top for the ability to werather this storm and nonsense and be back t profitibility faster than some of its larger competing airlines so I would be depressed and shocked if Alaska were to ever file BK.
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Old Mar 23, 20, 9:29 pm
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Alaska is not as strong as AA. AA's CEO declared they will never lose money again.

https://www.usatoday.com/story/trave...ain/715467001/
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Old Mar 23, 20, 9:38 pm
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Ironically, some of the things many FT posters have criticized AS for are reasons it has a better chance of surviving. AS has a smaller network and older planes (which they've mostly paid for already), which reduce its exposure. It also has less debt and more cash on hand than AA/DL/UA.

Sure, it could go under. But not before UA/DL/AA. And the US Gov isn't going to let that happen.
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Old Mar 23, 20, 10:00 pm
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No.

Here are more characters so the post is allowed.
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Old Mar 23, 20, 10:19 pm
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Not a fan of bail outs. I hope they donít get one.
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Old Mar 23, 20, 11:11 pm
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AS does have a strong fiscal history...
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Old Mar 24, 20, 12:11 am
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AS will be fine. They will pick up the pieces from the larger airlines that go bust or go under. Sure, they will cut some routes. Then they will pick up some other routes (from what the other carriers cut).
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Old Mar 24, 20, 12:32 am
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I'd like to see AS outright cancel more flights this and upcoming weeks to conserve cash. Most flights are now flying with 10-20 passengers these few days so they may as well cancel and rebook the customers on other airlines to save some cash.
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Old Mar 24, 20, 1:23 am
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Originally Posted by flyingstudent View Post
I'd like to see AS outright cancel more flights this and upcoming weeks to conserve cash. Most flights are now flying with 10-20 passengers these few days so they may as well cancel and rebook the customers on other airlines to save some cash.
Not sure there are "other airlines" operating on many of these routes. Consolidating frequencies I can see, and they are doing this.

I'm sure they are not done yet.

Flights look full ex-Hawaii tomorrow however.
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Old Mar 24, 20, 3:23 am
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Originally Posted by flyingstudent View Post
I'd like to see AS outright cancel more flights this and upcoming weeks to conserve cash. Most flights are now flying with 10-20 passengers these few days so they may as well cancel and rebook the customers on other airlines to save some cash.
Their response to this looks to be VERY slow compared with DL/UA/AA. In a couple of weeks when they start saying that they cannot pay their employees, I hope people remember, that they choose to operate their full block for far far longer than any other US airline in some of the earliest worst hit cities. Does anyone really think that we need more than 1x SFOxSEA right now!
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Old Mar 24, 20, 5:45 am
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Originally Posted by Xrayman View Post
What are the FT AS community members thoughts on the risk of AS filing for bankruptcy and thus all funds for future flights are lost. I have trips planned throughout the summer and donít want to purchase too early. Assuming the travel issues associated with COVID 19 stabilize and the country returns to some sense of normality (new normals likely)
Check your credit card policy. I have had this in the past and the credit card gave a full refund on my tickets. However if the bank issuing the credit card goes bust I dont know where that would leave you!
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