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Interesting DH Figures  
User currently offlineUnitedTristar From , joined Dec 1969, posts, RR:
Posted (8 years 5 months 1 week 1 day 20 hours ago) and read 1662 times:

So today I herd some pretty interesting finical figures about DH as Independence Air.

We all know they lost $450 million since starting operations.

If fuel was FREE, they still would have lost $200 million.

In order to break even, if fuel was FREE, they would have had to raise the fares by 43% or had a 110% load factor.

After hearing those numbers I just was wondering what they were thinking starting an operation that they did not price to even cover their expenses?


-m

 airplane 

7 replies: All unread, jump to last
 
User currently offlineJmc1975 From Israel, joined Sep 2000, 3242 posts, RR: 15
Reply 1, posted (8 years 5 months 1 week 1 day 19 hours ago) and read 1604 times:

Just give 'em time to restructure.  Wink


.......
User currently offlineBrokenrecord From United States of America, joined Jul 2005, 772 posts, RR: 0
Reply 2, posted (8 years 5 months 1 week 1 day 18 hours ago) and read 1531 times:

Quoting Jmc1975 (Reply 1):
Just give 'em time to restructure.

And time for pigs to fly... :p


User currently offlineIowaman From United States of America, joined May 2004, 4312 posts, RR: 6
Reply 3, posted (8 years 5 months 1 week 1 day 15 hours ago) and read 1459 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Dump the CRJ's... I know they loose alot connecting traffic but that will really lower cost per mile. Get a few more A319's and go from there. It may mean a reduction in passengers flying Indy and higher fares, but they got to do something to survive.

User currently offlineDLKAPA From , joined Dec 1969, posts, RR:
Reply 4, posted (8 years 5 months 1 week 1 day 15 hours ago) and read 1435 times:

Quoting Iowaman (Reply 3):
Dump the CRJ's... I know they loose alot connecting traffic but that will really lower cost per mile. Get a few more A319's and go from there.

Here's the thing about that: All of their airplanes are leased. They don't even have enough hard cash on hand for a single A319. So, if they were to get rid of CRJ's they'd just be getting rid of leases, they wouldn't gain a dime (ok, that's minus one lease payment, but then again the potential revenue stream is gone also). I doubt Indy survives the year. They may make christmas holiday, but after that they'll be eaten alive.


User currently offlineKevin82277 From United States of America, joined May 2000, 179 posts, RR: 0
Reply 5, posted (8 years 5 months 1 week 1 day 6 hours ago) and read 1341 times:

Quoting DLKAPA (Reply 4):
Here's the thing about that: All of their airplanes are leased. They don't even have enough hard cash on hand for a single A319. So, if they were to get rid of CRJ's they'd just be getting rid of leases, they wouldn't gain a dime (ok, that's minus one lease payment, but then again the potential revenue stream is gone also). I doubt Indy survives the year. They may make christmas holiday, but after that they'll be eaten alive.

You also have a problem that we have the leases. We can't just dump the CRJ's. We have to pay for them wether we use them or not. And the cost of returning a CRJ to the leaser is not cheap, and DH doesn't have much money, that doesn't seem plausable.


User currently offlineIowaman From United States of America, joined May 2004, 4312 posts, RR: 6
Reply 6, posted (8 years 5 months 1 week 21 hours ago) and read 1257 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Quoting DLKAPA (Reply 4):
So, if they were to get rid of CRJ's they'd just be getting rid of leases, they wouldn't gain a dime (ok, that's minus one lease payment, but then again the potential revenue stream is gone also).

But they wouldn't be loosing the money they are paying to operate them.

Quoting Kevin82277 (Reply 5):
And the cost of returning a CRJ to the leaser is not cheap, and DH doesn't have much money, that doesn't seem plausable.

So I guess DH is pretty screwed unfortunately. Best of luck to there employee's.


User currently offlineUnitedTristar From , joined Dec 1969, posts, RR:
Reply 7, posted (8 years 5 months 6 days 18 hours ago) and read 1147 times:

Quoting Iowaman (Reply 6):
So I guess DH is pretty screwed unfortunately. Best of luck to there employee's

Yea I second that. It just goes to show how much some ones arrogance can ruin so many lives. If he would have just maintained UA service he could have continued making money. Unlike what most people think it was with their contract with UA to start a LCC and operate as UAX they just could not operate competitive routes with UA. They could have established them self's until the RSM's were high enough to sustain them. Then broke off the revenue guaranteed routes as UAX.

Anyhow hindsight is 20/20

-m

 airplane 


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