FlyI in nosedive?
 

Link

Sad info on the day of Happy Bags...

Also from the above mentioned article....

"Although most industry observers share Baker's concerns about FLYi's prospects, many are more optimistic that the airline will survive. Struggling airlines have repeatedly found temporary saviors in time to avoid shutdowns. FLYi leaseholders, for example, own an estimated 20% of the company's stock and could bend further to protect their investment.

"Investors and analysts routinely underestimate liquidity rabbits that failing airlines pull from their hats," Baker conceded. Falling oil prices or a dramatic uptick in FLYi's revenue also could buy the company more time."

Not to downplay the seriousness of FLYI's situation, but there is some breathing room even beyond what has already been bought (especially if revenue increases... which it should from the second quarter on).

Total revenue increases, revenue increases per available seat mile, or revenue increases per passenger?

From previous financial reports, the last figure, revenue per passenger, is what is really hurting FlyI more than anything at this point, since they got their load factor to a respectable level.

I don't get it...
 

I just don't understand how an analyst can make the assumption that the same leniency would not be extended to FLYi that has now twice been extended to US Airways and to United for over two years now.

Najor hole in analysts theory
 

From WSJ:
"ARLINGTON, Va. -- US Airways Group Inc.'s (UAIRQ) first-quarter loss widened as the company struggled with a combination of high fuel costs and low fare prices.

In a press release Friday, the carrier, which is operating under bankruptcy protection, posted a first-quarter loss of $191 million
The company reported $513 million in unrestricted cash as of March 31, compared to $978 million on March 31, 2004. The cash reserves are crucial to the company's ability to receive continued financing from the federal Air Transportation Stabilization Board. If cash reserves drop below $300 million, the ATSB could find US Airways in default on its loan."


So if you were to divide $191 million by 3 months and assume that fule prices stay the same US Airways has less than 3 and a half months to find funding before they dip below the $300 million barrier. Otherwise using that formula they would have to liquidate on July 15th (give or take, tons of assumptions).

US is supposed to show an operating profit in March, so that might be why they are less on a death watch than DH.

At these prices...
 

I just bought 2 tix form ATL - BWI last week for $114 rt / pp. When I reserved seats, the plane was empty (I was able to snag exit rows going and coming).

How can they afford to make $$ when they are charging such low fares?

Are you sure those tickets were on FLYI? They don't fly to Baltimore (BWI).

If US posts a profit in March, I'm pretty sure that there would be some sort of rip in the fabric that holds together reality in our universe and we would all get sucked into a parallel universe where pigs could fly.

Sorry, they don't fly to BWI.

Where is March?
 

I don't know this for absolute sure but I would assume that March would fall into US Airways 1'st quarter (the one where they lost $191 million).

They lost 191mil in the 1st quarter (which is Jan-Mar for US), but apparantly that was mostly during Jan/Feb, and it appears (from what I have read elsewhere) that they will eke out a small operating profit for March. Maybe DH can do the same...