Will the Repo Man Come-a-knocking?

Discount and charter airline ATA is making a little bit of money — unique among airlines — but not enough to cover upcoming debt payments. They don’t have sufficient assets to pledge against additional loans to cover their $300 million in required payments. On the other hand, with the used aircraft market as soft as it is, Boeing is unlikely to simply want the planes back. I expect ATA’s management to be able to refinance. Since there’s actually some profit rolling in, flexibility will be Boeing’s best shot at repayment.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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