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t1_isuh91u wrote

Reply to comment by in [OC] Where did it come from, where did it go... American Airlines 22Q2 Financials by

Yes but historically aviation companies have a very short life compared to another industries

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OP t1_isycb5d wrote

It’s not only utterly brutal on cash flow, it’s also extremely capital intensive. Which is why a few people with access to large amounts of capital (like Udvar-Hazy, and GE) made themselves incredibly wealthy by allowing airlines to convert those massive capex into much more manageable opex.

There is a saying is that “if it flies, floats, or f🤬ks, it’s a lot cheaper to rent it”. This applies to the airline industry in a big way.

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