WeAAsles
Veteran
- Oct 20, 2007
- 23,651
- 5,275
Thanks for the congrats and insights Dawg. I was wondering your thoughts on this? AA is acquiring all of these new planes. I remember when the order was placed the benefits they were touting were in fuel savings because of the lightweight composite materials. They averaged the savings at about 30% per aircraft. Aside from that there also (sorry) will be a maintenance savings on each of those new aircraft.topDawg said:
Than Delta. United is doing the same thing AA is doing.
So far the market prefers Delta's methods.
I agree with this. Pretty much everyone expect PRASM to flatten out and start going up and expecting fuel to stay low or go lower.
Of course he thinks the market is crazy. They aren't buying into the AA/UA way of adding a bunch of new planes and refinancing debt. I don't blame them, over the long term out look(as I have said before) I believe DL is going to be a more nimble company. they won't have a brand new fleet that if the market goes bad they have to park (and pay payments or leases while they are parked) and will still have a huge debt load.
If the economy does go south eventually (of course it will) isn't Delta possibly at a disadvantage for not taking advantage of low interest rates now if those go up? Delta is eventually going to have to get new airplanes.
AA did pay off all of their high interest debt. And I'm not saying what Delta is doing is wrong. Just seems like a different approach. Which company in your opinion is thinking more long term over the other?