Thursday, July 02, 2009
Superferry article close, but no prize
by Larry Geller
Ok, no big deal, but the Star-Bulletin might have questioned this statement:
The company spent as much as $20 million fighting in court to keep the operation open, including the costs of keeping the ships ready and crews on the payroll while it waited for the state Supreme Court to rule, Harman said.
The ferry actually shut down after the Supreme Court ruling.
The article identified Alex Harman as a partner in the firm J.F. Lehman & Co.
The story also touched on the operating costs of the single ferry that operated in Hawaii:
Harman said that the company tried unsuccessfully to lease the ships to ferry operators in the Caribbean and Europe. The ships, which require about $20,000 a day to operate not including crew costs, may wind up being used by the U.S. military, Harman said.
So far most press coverage has avoided relating the costs of operation of the vessel to the revenues received. Estimates appearing in the blogosphere repeatedly questioned whether the company was making a profit, even on the best of days.
When a company can’t make money, bankruptcy is one likely outcome, and could have been predicted.