Table of Contents
Investment Thesis......................................................................................... 4
Credit Overview and Recommendations .................................................. 11
Airline Bank Debt Relative Value Matrix ................................................... 15
Classic A-Tranche EETC Index Historical Spread Performance............ 16
New A-Tranche EETC Index Historical Spread Performance ................. 17
Classic B-Tranche EETC Index Historical Spread Performance............ 18
New B-Tranche EETC Index Historical Spread Performance ................. 19
Classic C-Tranche EETC Index Historical Spread Performance............ 20
New C-Tranche EETC Index Historical Spread Performance ................. 21
Airline 5-Yr. CDS Historical Performance (AMR, CAL, JBLU, UAUA).... 22
Airline 5-Yr. CDS Historical Performance (LUV, QAN, LHY, BAY) ......... 23
AirTran – Liquidity....................................................................................... 24
AirTran – Balance Sheet & Credit Statistics............................................. 25
AirTran – Other Information ....................................................................... 26
Alaska – Liquidity........................................................................................ 27
Alaska – Balance Sheet & Credit Statistics.............................................. 28
Alaska – Other Information ........................................................................ 29
AMR – Liquidity ........................................................................................... 30
AMR – Balance Sheet & Credit Statistics ................................................. 31
AMR – Other Information............................................................................ 32
Continental – Liquidity................................................................................ 33
Continental – Balance Sheet & Credit Statistics...................................... 34
Continental – Other Information ................................................................ 35
Delta– Liquidity............................................................................................ 36
Delta– Balance Sheet & Credit Statistics.................................................. 37
Delta– Other Information............................................................................ 38
JetBlue – Liquidity ...................................................................................... 39
JetBlue – Balance Sheet & Credit Statistics ............................................ 40
JetBlue – Other Information....................................................................... 41
Southwest – Liquidity ................................................................................. 42
Southwest – Balance Sheet & Credit Statistics ....................................... 43
Southwest – Other Information.................................................................. 44
UAL – Liquidity............................................................................................ 45
UAL – Balance Sheet & Credit Statistics .................................................. 46
UAL – Other Information ............................................................................ 47
US Airways – Liquidity................................................................................ 48
US Airways – Balance Sheet & Credit Statistics...................................... 49
US Airways – Other Information ................................................................ 50
Valuation and Rating Analysis................................................................... 51
Risks to Our Ratings and Price Targets ................................................... 53