Note: This thread is related to #Coronavirus #COVID19

Follow the World Health Organization's instructions to reduce your risk of infection:

1/ Frequently clean hands by using alcohol-based hand rub or soap and water.

2/ When coughing and sneezing cover mouth and nose with flexed elbow or tissue - throw issue away immediately and wash hands.

3/ Avoid close contact with anyone that has fever and cough.

Tren Griffin+ Your Authors @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. May. 05, 2020 1 min read + Your Authors

25iQuiz: In 1977 Alfred Kahn said this:

"I really don’t know one plane from the other. To me they are just marginal costs with wings.”

What are the implications of this point about marginal cost on the pricing power and unit economics of an airline?

 https://www.google.com/amp/s/25iq.com/2016/01/16/more-than-a-dozen-reasons-why-investing-in-airlines-belongs-in-the-too-hard-pile/amp/ 

Governments have devoted more than $85 billion to airlines since the COVID crisis. "Some 80% of flight capacity remains idled."  https://www.bloomberg.com/news/articles/2020-05-02/coronavirus-airline-bailouts-a-guide-to-85-billion-in-state-aid?srnd=premium 

What did Warren Buffett mean when he said this last Saturday?

"We know what happens in airline pricing, when load factors go down and there’s an oversupply of airline seats." (02:39:20)

"The airline industry has situation where have very, very, very low incremental cost per seat with enormous fixed costs. The temptation to sell the last seat at a very low price is very high and sometimes it’s very hard to distinguish between that seat and the last seat." Buffett

"U.S. airlines are collectively burning more than $10 billion in cash a month and were averaging just 17 passengers per domestic flight and 29 passengers per international flight."

 https://www.reuters.com/article/us-health-coronavirus-airlines-congress/exclusive-u-s-airlines-burn-through-10-billion-a-month-as-traffic-plummets-idUSKBN22H2ZM 

"Net booked passengers have fallen by nearly 100% year-on-year. If airlines were to refund all tickets, including those purchased as nonrefundable or those canceled by a passenger instead of the carrier, 'this will result in negative cash balances that will lead to bankruptcy.'


You can follow @trengriffin.



Bookmark

____
Tip: mention @threader_app on a Twitter thread with the keyword “compile” to get a link to it.

Enjoy Threader? Sign up.

Since you’re here...

... we’re asking visitors like you to make a contribution to support this independent project. In these uncertain times, access to information is vital. Threader gets 1,000,000+ visits a month and our iOS Twitter client was featured as an App of the Day by Apple. Your financial support will help two developers to keep working on this app. Everyone’s contribution, big or small, is so valuable. Support Threader by becoming premium or by donating on PayPal. Thank you.