Anyone want to buy into an airline?

[Jerry_Atrick]

Was perusing through some classified and saw this: https://www.businessesforsale.com/regional-jet-airline-for-sale.aspx

 

Wondering who it could be?

 

 

[onetrack]

Jerry - This sounds like a new startup airline to me. They are using a fleet of "late model jet airliners", and are "about to sign a core FIFO contract".

 

Sounds to me like a group of redundant airline execs have banded together to take advantage of the huge oversupply of near-new regional jets going cheap, to fill a major miners FIFO demands.

Most of these FIFO contracts are airline gold - constant income, guaranteed pax numbers, and clients who are not even remotely likely to go bust and leave the airline struggling.

[Jerry_Atrick]

Hmmm sounds interesting - though presumably if that were the case they could finance it without resorting to advertising owns a business for sale ad?

[onetrack]

These type of people are generally quite happy to have a major financing partner on board, who effectively "owns" the airline. Very few airline executives own any sizeable portion of the airlines they run.

 

The execs provide the management for a good renumeration, with the intention of keeping themselves in a job for an extended period - and the financing partner stumps up the cash to run the airline.

 

Most aircraft are leased, anyway, so the money is not required for aircraft purchase, but rather for the airline equipment, plus cash at hand for ongoing debt servicing and working capital.