AirTran 1st Quarter results

[tailhookah]

AirTran Holdings, Inc. (NYSE: AAI - News), today announced that it intends to offer, subject to market and other conditions, $65 million of Convertible Senior Notes due 2015 (the "Notes"). AirTran intends to grant the underwriters of the Notes offering a 30-day option to purchase an additional $9,750,000 aggregate principal amount of the Notes, solely to cover over allotments, if any.

Sorry to say but this is a desperate measure to try to quickly raise cash to continue to operate... translation? Airtran is on the ropes and needs either 1) CASH or 2) an immediate merger partner.

I predict, within the next 4 weeks, the next 2 airlines to file for BK protection are Airtran and Spirit... in no particular order.

Tailhookah

ps- not reveling in this guys... it's a rough time for all of us and a merger or BK is just around the corner for all of our companies at the current pace.

 

[Eagle757shark]

It is time for AirTran to find a international code-share partner. With the weak dollar, it is time to tap into some of that international travel. AirTran's growth plan for the second half of 2008 and all of 2009 has been cut to zero. If fuel continues to rise and you are not agressively raising ticket prices to cover that cost, then what will change? Another way of tapping into higher yield and revenue has to be achieved. Important note, AirTran has the lowest non-fuel cost in the industry. Southwest has one of the best fuel hedging programs in place. This has allowed Southwest to remain profitable as they have maintained their domestic route structure. Jetblue has tapped into the international market through a code share with Luftansia and has steadily grown into the carribean markets. Jetblue recorded a $8 million dollar loss in the first quarter and has approx $1 billion dollars in cash. AirTran has spent the last 7 years building a small domestic network. Maybe it is time to look for a couple of European and Latin America companies to link up with as another way to raise revenue and yield. Well I guess a merger is always possible as well.

 

[Lear70]

Sorry to say but this is a desperate measure to try to quickly raise cash to continue to operate... translation? Airtran is on the ropes and needs either 1) CASH or 2) an immediate merger partner.

I predict, within the next 4 weeks, the next 2 airlines to file for BK protection are Airtran and Spirit... in no particular order.

Tailhookah

ps- not reveling in this guys... it's a rough time for all of us and a merger or BK is just around the corner for all of our companies at the current pace.

Don't think so...

The 10k doesn't reveal anywhere NEAR such a dire cash position.

They're doing this preemptively for the losses that will be incurred in the 2nd and 3rd quarter due to selling tickets at $90 a brl. oil prices when oil will likely go even higher.

I'd bet if they can't get revenue up to cover costs by the end of the year then yes, look for a Ch. 11 filing then. But not quite yet...

Spirit I have no clue about...

 

[SFR]

AirTran is toast! If you work there, start looking for another job. Sorry, but this is true.

Life of LCCs are going to be terminating slowly here.

 

[Max Powers]

AirTran is toast! If you work there, start looking for another job. Sorry, but this is true.

Life of LCCs are going to be terminating slowly here.

And let me guess you work for a legacy????

The tranny has about as much cash on hand as most of the legacy when compared in a ratio to expected future losses.

 

[SFR]

Ok, save this message and refer to it in 2 years. Then you can hire me as a consultant.

 

[Britpilot]

AirTran is toast! If you work there, start looking for another job. Sorry, but this is true.

Life of LCCs are going to be terminating slowly here.

Thanks for the advice. Where do you suggest we look for work? The Legacy carriers that will soon be furloughing pilots?

 

[SFR]

Not sure. Ask your union, aren't they suppose to help?? Oh, that is right, airline unions are NOT real unions. That is true for ALPA too!

Seriously, find another job at a hopeful company. Airtran was good after 9/11, but there day is done. Unfortunately, this kind of cycle is true for a lot of industries.

Maybe build another trade too.

 

[Lear70]

Flamebait...

Looks like clyde frog found another user name...

 

[PCL_128]

Plus no growth for 2008 and 2009.... The days of 3 yr upgrade are over!

Exactly. Better see some damned good FO rates in that next TA. I certainly won't be agreeing to subsidize fuel costs with my pay.