UnitedTristar
Topic Author
Posts: 839
Joined: Fri May 21, 2004 6:45 am

Interesting DH Figures

Sat Nov 12, 2005 8:26 am

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 
 
jmc1975
Posts: 2895
Joined: Mon Sep 18, 2000 10:57 am

RE: Interesting DH Figures

Sat Nov 12, 2005 9:30 am

Just give 'em time to restructure.  Wink
.......
 
brokenrecord
Posts: 747
Joined: Tue Jul 12, 2005 6:45 am

RE: Interesting DH Figures

Sat Nov 12, 2005 10:31 am

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

And time for pigs to fly... :p
 
iowaman
Posts: 3878
Joined: Thu May 20, 2004 2:29 am

RE: Interesting DH Figures

Sat Nov 12, 2005 12:45 pm

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
Posts: 7962
Joined: Wed Dec 03, 2003 10:37 am

RE: Interesting DH Figures

Sat Nov 12, 2005 1:02 pm

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.
And all at once the crowd begins to sing: Sometimes the hardest thing and the right thing are the same
 
kevin82277
Posts: 176
Joined: Wed May 24, 2000 5:45 am

RE: Interesting DH Figures

Sat Nov 12, 2005 10:14 pm

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
Posts: 3878
Joined: Thu May 20, 2004 2:29 am

RE: Interesting DH Figures

Sun Nov 13, 2005 6:41 am

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
Topic Author
Posts: 839
Joined: Fri May 21, 2004 6:45 am

RE: Interesting DH Figures

Mon Nov 14, 2005 10:28 am

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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