Help me do this analysis

Discussion in 'Trading' started by nitro, Sep 24, 2002.

  1. nitro

    nitro

    UAL's current market cap is about $150M. Now, that's about the cost of two of it's airliners - their fleet is 600 ish.

    How can UAL trade so below it's book value? Does it have to do with the Bond holders and other creditors - or perhaps it only owns a fraction of those jets?

    If so, how would I calculate what would be owed to the bond holders in the case of bankrupty? Or how many of it's jets it actually owns?

    Is there a document or better a website that describes this?

    nitro
     
  2. the debt is more than the assets.
     
  3. Most airlines lease their jets ...

    ET's Whipping Child
     
  4. Dustin

    Dustin

    They own less than half of the planes...

    own 243
    lease 300
     
  5. Every single airline leases a portion of their planes. In fact, most of them lease most of the planes they fly, if not all.
     

  6. Oops, sorry guys, I see you both beat me to it.
     
  7. They lease them? I always hear on the news that Boeing has
    sold so many jets to some airline. Do you mean they don't really
    buy them? Who do they lease them from? Certainly not Boeing...
     
  8. def

    def Sponsor

    Think of it this way, you can own a house but if you can't afford the mortgage....

    as for aircraft leasing, if i recall int'l lease finance corp is the biggest name in the game.