Quote:
Originally Posted by WarrenC12
An easy way to generate quick cash is by selling unused assets. The short-thinking stock market likes that, as well as governments desperate to show a "balanced budget".
|
But in this case they'd have to formally abandon the line to do that, and given that their threat to run trains would have failed if that step had been taken I'm a bit doubtful that they'll want to cross that bridge.
A short-term cut in expenses (wages) is appropriate for a short-term drop in business. It's generally not wise to sell assets unless there's some structural reason why you think your revenues are not going to recover in the future.
It's true that this is an unused asset, but I think they'd still like to maximize its value. The question is really one of whether they think they've exhausted all their options in that regard. And that evaluation process is really quite independent of their current business issues.