Financing For Aircraft

[N230UA]

So wait, in the answer to my earlier question. UA runs a 747 only on a LAX-IAD return and nothing else during the day? Isn't that a little less than what it should be doing?

[post="286651"][/post]​

The reason why there are still widebodies in abundance on the domestic schedule is that it is easy for us to replace lift domestically. We've known for a while what planes are in danger of being returned or repossessed, and placed them onto domestic turns in case they indeed needed were goners from the fleet.

It would have caused much more havoc had this 744 (known to be at risk or return/repossession) been routed on an intl cycle.

 

[Bear96]

So wait, in the answer to my earlier question.  UA runs a 747 only on a LAX-IAD return and nothing else during the day?  Isn't that a little less than what it should be doing?

[post="286651"][/post]​

A few years ago the evening IAD-LAX 747 used to usually continue on to SYD taht night (but with a different flight #). Exact aircraft routings can change on an almost daily basis though.

 

[s80dude]

A few years ago the evening IAD-LAX 747 used to usually continue on to SYD taht night (but with a different flight #). Exact aircraft routings can change on an almost daily basis though.

[post="286661"][/post]​

I take it then that no warning is required to reposses a plane? Does the leasing company send their own pilots and simply take it from UAL?

 

[WorldTraveler]

what this says is that UA, and presumably other airlines that want to renegotiated their leases (since I doubt if UA is paying much over what other airlines paid for comparable airplanes) will find it very difficult to do so. Given the strength of world airlines relative to US airlines, US airlines will have to pony up the cash or lose the aircraft. This also says that UA's business plan is not going to deliver what it said it would because it was built around substantially more reductions in aircraft costs. There are also supposedly many more aircraft which have leases which are in limbo.

 

[UnitedChicago]

Oh and you've seen the business plan? If your scenario were true, don't you think that would have been cited as another reason the creditors wanted to delay the filing of the reorg plan? They were quite frank about being concerned about revenue projections and fuel. Nothing was said about operating expenses.

Why are you even over here? Did anyone ask or provoke you to post something that will obviously start a pointless debate?

 

[mrfish3726]

$63 and rising!

 

[UnitedChicago]

$63 and rising!

[post="286780"][/post]​

Yeah no #### dumb ass. That hurts your company too...

 

[sastal]

$63 and rising!

[post="286780"][/post]​

Boy, that was off topic. Kinda like the Energizer fishy, it keeps going and...

 

[mrfish3726]

http://yahoo.reuters.com/financeQuoteCompa...08361276_newsml

When will the madness STOP??? B)

 

[mrfish3726]

Should have looked up todays close on oil before I posted $63 a barrel, it closed at $64 a barrel today. As they have predicted, it could be hitting $70 a barrel by the end of summer OUCH! 😛h34r:

 

[casual rat]

When you take your Shrink's advice and start back on the medication he prescribed you....

 

[mrfish3726]

UniTEDChicago says, "Yeah no #### dumb ass. That hurts your company too..."

Yes it will hurt EVERY company nation wide, but for some like UniTED it is devastating news! When they have set up their business model at $50 to $54 a barrel the rise in fuel is almost impossible for them to meet that! It's only a matter of time till they either come after more from labor, or they just throw in the towel! 🙄

 

[Bear96]

Yes it will hurt EVERY company nation wide, but for some like Frontier it is devastating news! When they have set up their business model at $50 to $54 a barrel the rise in fuel is almost impossible for them to meet that! It's only a matter of time till they either come after more from labor, or they just throw in the towel! 🙄

[post="286790"][/post]​

Yes this recent spike in oil prices certainly is devastating news for Frontier. I hope you have your resume ready to go for when they throw in the towel.

It almost seemed like you were referring to UA with the "business model at $50 to $54 a barrel," but then I remembered your other thread where you asserted UA has no business plan. So you must be talking about Frontier. Really, your company can't sustain such high fuel prices. So sad that so many people will soon be looking for other work.

Good luck over there! Hopefully they'll throw you some sort of severance package when they close the doors. At fuel prices this high, an airline with financial troubles like Frontier won't be around for long. I wish you the best.

 

[WorldTraveler]

not one airline can survive given the current pricing environment. We are in a war of attrition. Logic says that the airline that are already in bankruptcy are the most vulnerable; airlines like DL or NW that are uncompetitive in their costs, balance sheet, or revenue; and those that are near the top of the legacy industry are strongest - but still very vulnerable. Problem is that investors have continually been willing to provide funding to the industry in order to keep a flood of aircraft from hitting the market.
This is shakeout time. either investors will continue to prop up airlines that have proven that they cannot operate in this environment or the shutdown of the industry will begin. There is absolutely no justification for keeping the current number of airlines or aircraft flying once Labor Day comes and loads for all carriers drop to or below 60% and if fuel stays about $60/bbl.

 

[UnitedChicago]

not one airline can survive given the current pricing environment. We are in a war of attrition. Logic says that the airline that are already in bankruptcy are the most vulnerable; airlines like DL or NW that are uncompetitive in their costs, balance sheet, or revenue; and those that are near the top of the legacy industry are strongest - but still very vulnerable. Problem is that investors have continually been willing to provide funding to the industry in order to keep a flood of aircraft from hitting the market.
This is shakeout time. either investors will continue to prop up airlines that have proven that they cannot operate in this environment or the shutdown of the industry will begin. There is absolutely no justification for keeping the current number of airlines or aircraft flying once Labor Day comes and loads for all carriers drop to or below 60% and if fuel stays about $60/bbl.

[post="286894"][/post]​

THANKS FOR YOUR UNSOLICITED OPIONION