Cash Is King At Cactus

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One thing I always look for in airline quarterly reports is the amount of
cash on hand.  While Southwest has amassed an amazing $1.5b of spending loot,
Phoenix based America West has almost $600m in the corporate piggy bank.  Yes
they have more than enough to pay off the govt guaranteed loan...weather a
downturn...or go on a spending spree.  But don't worry about CEO Doug Parker going
off the deep end as he is one of very few industry leaders who knows how to run
an airline in the black.

Like to guess what allowed Cactus to post a profit in Q4?  Those new transcon
flights from JFK/BOS to LAX/SFO.  Parker learned rather quickly how
inexpensive and profitable it is to keep an airplane in the sky for five hours and not
worry about missed connections, lost baggage and delays at a hub city.  Yup,
point to point pays.

RT Simpson
Phoenix

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