Definition of 'Foam The Runway' A term indicati

Definition of 'Foam The Runway'

A term indicating the last-minute infusion of cash into a company about to go bankrupt. Airports foam runways prior to an imminent crash landing to help reduce friction and sparks. Just as foaming the runway is a last stand against a horrible crash landing, a company obtaining a loan to stay in business is a last stand against going under.

"Foam the runway" is also a general statement in business, which refers to preparing for a potential disaster.

For Life
Investopedia explains 'Foam The Runway'

If a company is in trouble before having to obtain an infusion of cash, foaming the runway will usually just delay the inevitable. Prudent investors should not assume that a cash infusion will save a company, and should carefully review all available information before making an investment decision.



NOW I don't think this was the reason for the cash, i think it was to OH yah know START OPERATIONS, training, and drug tests and background checks and all the other things that need to be paid for before flying and a tank of gas!