Us Airways Obtains Second $125 Million
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BoeingBoy
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Rico,
I almost guarantee that you're right. It's almost derigeur in the airplane business that airlines never pay "list", plus being the launch customer (not just domestic but at least North America and I believe western hemisphere) probably gave a bigger price break than usual.
Jim
I almost guarantee that you're right. It's almost derigeur in the airplane business that airlines never pay "list", plus being the launch customer (not just domestic but at least North America and I believe western hemisphere) probably gave a bigger price break than usual.
Jim
Yeah, I would LOVE to see what jetBlue got their E-190's for..., IMO they probably have obtained a smoking good deal on them. If the E-190's are profitable for JB (and I am willing to bet that they will be), Embraer will have a tough time building them fast enough to keep up with all of the orders coming in.
But back to US Airways, I am sure that they had a good price, if anything in return for helping iron out many of the initial issues with a new aircraft. Probably part of the reason they were able to get so many prior to, and even in BK, because they were a bargain that could be resold/re-leased easily.
But back to US Airways, I am sure that they had a good price, if anything in return for helping iron out many of the initial issues with a new aircraft. Probably part of the reason they were able to get so many prior to, and even in BK, because they were a bargain that could be resold/re-leased easily.
BoeingBoy
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Rico,
I can't guarantee accuracy, but I think that these are the 170's that are mortgaged:
N805MD
N806MD
N809MD
N810MD
N815MD
N818MD
N821MD
These do not include the 6 we receive this year - I don't know their tail numbers but presume they continued in order after N822MD. These 7 and the new 6 are the ones subject to agreements with Embraer, the rest with GE.
Jim
I can't guarantee accuracy, but I think that these are the 170's that are mortgaged:
N805MD
N806MD
N809MD
N810MD
N815MD
N818MD
N821MD
These do not include the 6 we receive this year - I don't know their tail numbers but presume they continued in order after N822MD. These 7 and the new 6 are the ones subject to agreements with Embraer, the rest with GE.
Jim
BoeingBoy
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Here's several articles on the AWAC/Republic deals. Mostly the same info from different slants....
US Airways finds its saviors in smaller airlines
US Airways poised for future merger
US Airways Wins More Financing, but With a Catch
From the British perspective (though it's from a Chicago reporter):
US Airways investment hopes rising
This one focuses more on the Mesa aspect:
Mesa Air mulls aid for ailing carrier
US Airways finds its saviors in smaller airlines
US Airways poised for future merger
US Airways Wins More Financing, but With a Catch
From the British perspective (though it's from a Chicago reporter):
US Airways investment hopes rising
This one focuses more on the Mesa aspect:
Mesa Air mulls aid for ailing carrier
Boeing Boy: Good point on the mortgage and EETC issue. I guess I assumed that US Airways owned them free and clear (hence the ability to sell them as financing), but you know what they say about assumptions...
mweiss: You are absolutely right about franchising. If you travel around the country alot, you can tell which companies have a good program, which don't, and sometimes even which companies are or aren't franchised.
General comment: My point about Airplane vs Automobile depreciation was a bit tounge-in-cheek. I guess I should have used one of these: 😛
mweiss: You are absolutely right about franchising. If you travel around the country alot, you can tell which companies have a good program, which don't, and sometimes even which companies are or aren't franchised.
General comment: My point about Airplane vs Automobile depreciation was a bit tounge-in-cheek. I guess I should have used one of these: 😛
Two points:
1. I want to give US kudos for my EWR-CLT flight last night. I was jet-lagged as hell (having just come in on SQ SIN-EWR) but the FA in F made the flight pass smoothly.
2. Quick as I am to criticize any justification for US' continued existence, I have to give credit to Lakefield for exploiting the biggest non-energy crisis facing the industry: the EXTREME glut of regional jet capacity. As Mike Boyd and others have pointed out, the 1990s RJ explosion has now caused a severe surplus of RJs, with regional operators in a race to the bottom. Therefore, RJ operators are currently trying to do one of two things - solidify their relationships with mainline partners (sometimes to the point of equity investments in the mainline carrier, as with US), or else "evolve" into mainline carriers themselves (Atlantic Coast/Indy Air is the best example of this, though of course that's not saying much).
1. I want to give US kudos for my EWR-CLT flight last night. I was jet-lagged as hell (having just come in on SQ SIN-EWR) but the FA in F made the flight pass smoothly.
2. Quick as I am to criticize any justification for US' continued existence, I have to give credit to Lakefield for exploiting the biggest non-energy crisis facing the industry: the EXTREME glut of regional jet capacity. As Mike Boyd and others have pointed out, the 1990s RJ explosion has now caused a severe surplus of RJs, with regional operators in a race to the bottom. Therefore, RJ operators are currently trying to do one of two things - solidify their relationships with mainline partners (sometimes to the point of equity investments in the mainline carrier, as with US), or else "evolve" into mainline carriers themselves (Atlantic Coast/Indy Air is the best example of this, though of course that's not saying much).
jimntx
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avek00 said:
How does moving rj flying from in-house to a contractor reduce the glut in anyway? Parking them in the desert or selling them to an overseas entity might reduce the glut, but giving the a/c and the flying to a partner means the same number of a/c and the same number of seats are still available.
BoeingBoy
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funguy2 said:
Now that the agreement is out, it appears that the part of the $110M that applies to the Emb-170's ($44M roughly) represents U's equity in the a/c with Republic assuming the remaining debt. This amount will be adjusted if the a/c sale goes through, to reflect such things as reduction in debt due to U's continuing monthly payments, depreciation of the a/c, etc.
Jim
jimntx said:
I believe Avek's point was that since RJ operators have more planes than needed, US used this as a bargaining chip to get financing from them in exchange for guarantees that their planes will continue to have a place to operate. Instead of worrying whether or not they will have unneeded planes as the industry starts to purge some RJs, they have guaranteed operations in exchange for financing.
🙂 Since the regionals (Air Whiskey, Republic and Mesa) are essentially buying the bigger regional (USAir) I wonder if a reverse jets4 jobs is about to occur. Since it was ML's idea to force the regionals to give super senority to U employees over the "lesser pilot groups" at the regionals in order for the regional pilots to keep their jobs, I wonder if the same is about to happen. Maybe a jets 4 jobs extortion (like the one imposed on the regional carriers) for ML is in line. Maybe the regionals that are keeping U afloat will require that U ML pilots have to give the regional pilots super senority and postions on the 73's , 76's and Airbus's. Lets say 50% of all ML left seats should go to the pilots from the regionals that are saving U ( sound familiar?) Wouldn't it be ironic that the ML U pilot group would reap what they sow?
