markkus757
Veteran
- Joined
- Jul 26, 2004
- Messages
- 598
- Reaction score
- 1
I don't even think they have to survive until 2008. When SW's fuel ends, they will have to raise prices. They are in the driver's seat until then. If they had to pay even $10 / barrel more, they would not have even ventured into PHL or PIT. They are too expensive. The cheap gas allowed them to almost subsidize the entries of these airports. GECAS is a well-run company. They have to look at the whole picture. On one hand, they will have to eat the planes that US is using right now. On the other hand, they might get another domestic carrier to take on a potenially huge seller. There are a lot of 767s in North America. I think that if someone buys/leases a significant fleet of this type, others will have to try to compete; this might mean more of a market for a new type of aircraft. GECAS would be able to swoop in and grab the prime production slots in front of any of the North American carriers and force them to either wait for slots or lease from GECAS. They will probably wait a little while until either a major purchase(not CO's handful) by the others, or a substantial amount ordered by foreign airlines who will fly them into the US. The competitive atmosphere will be set up for them to make good money going forward, regardless of whether US survives or not. GECAS will order the planes anyways. If US survives byt then, they will get the first planes.