TWA902fly From United States of America, joined Dec 1999, 3201 posts, RR: 4 Posted (16 years 4 months 1 week 3 days 3 hours ago) and read 1664 times:
I am just wondering. I know that they were "financially troubled" and had little money- plus they just recieved their first 717, where do they get the money to operate like that? They gotta be cutting back on something
life wasn't worth the balance, or the crumpled paper it was written on
Sammyk From United States of America, joined Oct 1999, 1702 posts, RR: 0
Reply 1, posted (16 years 4 months 1 week 2 days 16 hours ago) and read 1573 times:
Well, they are profitable, at least for the last few quarters. They must have their debt well structured and are paying it on time. If you go to their website you can see how they financed the first 10 717s. Also, the lower operating cost of the 717s is probably helping them cut costs with just fuel alone.
FrontierMan From United States of America, joined Oct 1999, 413 posts, RR: 0
Reply 5, posted (16 years 4 months 1 week 2 days 7 hours ago) and read 1532 times:
From what i understand Valujet had huge cash reserves right before the merged with AirTran. AirTran is not financially troubled. They have one of the lowest break-even load factors in the industry. They constantly exceed that factor. I don't know where people get the fact that AirTran is financially troubled. AirTran also gets money from selling their old DC-9s.
Acvitale From United States of America, joined Aug 2001, 922 posts, RR: 10
Reply 6, posted (16 years 4 months 1 week 2 days 5 hours ago) and read 1530 times:
Air Tran had a special charge in the last quarter dealing with disposing of the DC-9-30's and 737-200Adv's, They sold 13 or 14 of them and leased back 7 or so. The 717's are doing wonders for the carrier and I would expect that they will continue to show profitable quarters with the exception of special charges as they retire the older aircraft
MD-90 From United States of America, joined Jan 2000, 8530 posts, RR: 11
Reply 7, posted (16 years 4 months 1 week 2 days 4 hours ago) and read 1530 times:
Back when Douglas first designed the DC-9, the main priority was to make it as cheap to operate as possible. Despite their higher fuel burn, their DC-9s are still fairly inexpensive to operate (especially when compared to, say, a 727). I'm sure they'll save a bundle of money on piloting training and fuel alone when they reach an all 717 fleet. I hope they eventually add service to Huntsville, AL (where I live) so I can try flying them.