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Author Topic: Bank Closures  (Read 1585 times)

jumbo Mouse

  • Former member
Bank Closures
« on: March 23, 2010, 11:41:42 AM »
 

How far in the red do you have to go for a bank to close an airline, I see AJK Airlines -48 million!!!!

JM

Offline Daveos

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Re: Bank Closures
« Reply #1 on: March 23, 2010, 11:49:45 AM »
It depends on the cash flow situation. 

In AJK's case, he'll have had a bankruptcy warning from the bank and I think it's 6 real-time days you get to sort things out.  If you can't get your cash available back to black then the bank will close you down.

If you take out a very large loan and spend it, then you can sometimes have a negative value like this, but still be making a profit and have cash you can access.

Offline Sami

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    • AirwaySim - Are you the next Richard Branson?
Re: Bank Closures
« Reply #2 on: March 23, 2010, 12:12:55 PM »
I see AJK Airlines -48 million!!!!

Airline value is not necessarily the same as the true cash in hand (which you cannot actually see), if he has a lot of loans and zero cash.

jumbo Mouse

  • Former member
Re: Bank Closures
« Reply #3 on: March 23, 2010, 02:32:15 PM »


Yes, thanx, I did not think of that....
Thankyou

JM

Offline schro

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Re: Bank Closures
« Reply #4 on: March 23, 2010, 10:51:16 PM »
Though, when all a/c at an airline are leased, CV tends to equal cash on hand :-)

Transcontinental hit about -100 million before its 1 week BK timer expired and it was shut down, so there's still plenty left to fall - the real sign of epic fail being delivered is the pax transported spiral of death. Once that starts trending downward, it usually gets parabolic pretty quick...

Offline JonesyUK

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Re: Bank Closures
« Reply #5 on: March 24, 2010, 07:03:55 PM »
Though, when all a/c at an airline are leased, CV tends to equal cash on hand :-)


Nope, you could have  $20m loan, $5m cash and so -$15m value  :)

Offline Caymanair

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  • Posts: 90
Re: Bank Closures
« Reply #6 on: March 26, 2010, 04:30:50 AM »
My last airline based at SMF had a fleet of 135 leased aircraft and $40m cash on hand... and a CV of -102m.

 

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