Is GOL in the business of moving passengers or trading airplanes?
What about Frontier?
Introducing the sale-lease-back treadmill and what happens when you can't keep up.
Our weekly newsletter this Thursday looks at comments coming from Frontier Airlines earnings on booking gains for aircraft that are sold and leased back to the airline.
Frontier earned $71 million more during the quarter than it paid for the aircraft. But, these come with higher lease rates attached, injected into an otherwise unprofitable airline.
Is it currently a problem for Frontier?
No.
Can it be?
Sure, but how?
This is where Gol Linhas Aéreas Inteligentes comes in. The long run on the sale-lease-back treadmill recently came to an end through a Chapter 11 bankruptcy filing.
This week, we look at the practice of the sale-lease-back, its merits, and what happens when you overdo it.
It all leads us to the existential question: Are airlines in the business of moving passengers or trading airplanes?
Answer: Credit card points...
But that's a different analysis for a different time.
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Exciting times!