Like a broken record, some investors here keep questioning whether Baltia has enough cash resources to begin flight operations. I suppose this is understandable when you consider Baltia's 20 year history of financing that has fallen through for various reasons. That is what makes this time a charm.
First, Baltia is no longer dependent on other people for their Financing. Baltia went out and raised the money themselves.
Second, they limited the amount of money required for launch by reducing their initial operations from 3 planes, to 1 plane. At 1 round trip per week, to begin with, increasing number of flights later when feasible.
Thirdly, they further reduced their up front costs by buying a fuselage and leasing the engines (power by the hour) at a cost of around $1.5 Million, instead of buying the entire aircraft outright at around $5.5 Million. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=44287442
In summary, Baltia has done an admirable job of limiting the Expense side of their Launch equation.
Some investors seem to think we need to know exactly how much cash Baltia has and what is their next move. HORSEPUCKY!!! Investors do not get this info from General Motors or Microsoft or any other company, why would you expect it from a Development Stage Airline. Give Baltia some room to maneuver so they can appease the FAA. Remember, they are also in sensitive financial negotiations with various people, companies, and Regulatory Agencies. We do not need to know all the details before they happen.
We should not, and never will know all the details, Live with It!!
Instead of what we do not know, here is what we do know:
5.) Several investors from another message board, stated that a few days ago they bought directly from Baltia blocks of shares and warrants, that cost them $10,000 each. They also stated that Placement is now closed to investors.
6.) It is common knowledge that Baltia will be given permission to begin ticket sales for flights, 30 to 45 days before their Inaugural Flight Date. It is expected they might be able to raise up to $3 Million in pre-flight sales and have deposited the money in their account before their first flight.
7.) Lastly, Baltia still has available the $5.1 Million Lines-Of-Credit from 8 different employees, including the Baltia CEO and other top level executives. This Line-Of-Credit was verified and approved by the D.O.T. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=44303832
Investors need to understand something that I just recently read. "The beauty of the Airline Industry, is that you are allowed to bill and collect the money first, then perform the service, later be billed for your payment".
The above list contains 7 different sources of cash. There are several other options and possible sources that I did not even list. Using just numbers 2, 3 and 7 certain sources from above, gives a total of $8,000,000 cash available. One could make a good case for a much higher dollar amount, it depends on what happens in the near future.
Hopefully, this should settle once and for all that Baltia Air Lines has sufficient capital resources to begin their initial flight operations.
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