Brokenrecord From United States of America, joined Jul 2005, 772 posts, RR: 0 Reply 2, posted (7 years 6 months 2 weeks 11 hours ago) and read 1254 times:
Quoting Jmc1975 (Reply 1): Just give 'em time to restructure.
Iowaman From United States of America, joined May 2004, 4098 posts, RR: 7 Reply 3, posted (7 years 6 months 2 weeks 8 hours ago) and read 1182 times:
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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.
DLKAPA From , joined Dec 1969, posts, RR: Reply 4, posted (7 years 6 months 2 weeks 8 hours ago) and read 1158 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.
Kevin82277 From United States of America, joined exactly 13 years ago today! , 179 posts, RR: 0 Reply 5, posted (7 years 6 months 1 week 6 days 23 hours ago) and read 1064 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.
Iowaman From United States of America, joined May 2004, 4098 posts, RR: 7 Reply 6, posted (7 years 6 months 1 week 6 days 14 hours ago) and read 980 times:
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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.
UnitedTristar From United States of America, joined May 2004, 1241 posts, RR: 4 Reply 7, posted (7 years 6 months 1 week 5 days 11 hours ago) and read 870 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
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