wooga1

The Airlines' Recent Death Defying Actions

this article has some seriously flawed assumptions in it! a company's cash balance is not (by itself) a good indicator of their liquidity. if amr has $11 bil in debt and $5 bil in cash and lcc (us airways) has $3 bil in debt and $2.8 bil in cash who is in better shape??? you infer in your article that amr is in better shape in this scenario because they have more cash. sorry that's not the way it works in the real world of finance. of course, it is even more complicated than that (since lcc leases their planes while amr owns theirs, etc). don't have time to get into that. please be careful when throwing stones at cos like us airways- lots of bad info floating around re: their liquidity situation.