E190's going bye bye?

190 questions and answers


Kevin Crissey – UBS

And on the 190 analysis and no I’m not going to get into the details of it but what are the puts and takes on that analysis.

Scott Kirby

Well its capacity that we have the flexibility to reduce. It’s a small sub fleet for us at 25 aircraft so there’s some operational efficiency to be gained by reducing it and it’s a aircraft that is in demand around the world. We have good pricing on the airplane so its something that we can, a transaction that we can effectively implement from a financial perspective so we’re just starting the process of looking at that as a way to further reduce capacity in this environment.

Justine Fisher – Goldman Sachs

And if you took out the ERJs you would just substitute them with your other CRJs etc. that you’ve got already in the fleet.

Scott Kirby

If we took out the Embraer 190.

Justine Fisher – Goldman Sachs

Yes.

Scott Kirby

Yes, we would just, we would wind up reducing capacity by 2.5%. What that likely means is we would fly fewer frequencies and kind of re gauge, you’d have a re gauging across the entire network but net, 25 fewer airplanes which result in fewer frequencies.


Ted Reed – TheStreet.com

First of all if you’re going to take out 190’s, you haven’t factored in those employment reductions yet so there would be reductions in employment if that occurred wouldn’t there.

Doug Parker

Yes, if that occurred.

Ted Reed – TheStreet.com

So you would be announcing those next week.

Doug Parker

No, seriously, I know you’re kidding but we’re not announcing on the 190’s other than the fact that we have let people know that that’s an aircraft that we could reduce and we’re looking at doing so. But the last thing I want to do is get employees anxious about further job reductions and that’s not what we’re announcing by any means. All we’re announcing is that these are, and given that the environment is still where it is, this is the kind of things that we need to look at. And we will look at it over time as we’re doing right now.

Ted Reed – TheStreet.com

These aircraft are very popular with passengers, aren’t they, the 190’s, so that’s a diminishment.

Scott Kirby

So are Airbus A320’s and 321’s and I think we fly efficient, well rounded fleet.
 
Actually, I just flew a few trips on the 400's. They were very clean and well kept all around. It would have been MUCH cheaper to spruce the 733's a bit instead of introducing another type of A/C into the fleet. If the company really wanted to streamline the fleet, they could have just added more 319's.

I've spent about 8000 hours on them, they are tired and have a lot of operational issues. I agree with your A319 point, but they took the cheap way.
 
Given past practice, starting with getting the 'right' people on the bus and running who is left over with it.

The 190s will go to Republic.
 
Given past practice, starting with getting the 'right' people on the bus and running who is left over with it.

The 190s will go to Republic.
Yeah they'll go to Republic so they can fly them as Midwest and continue to grow on the backs of all of the mainline employees across the industry while continuing to lower the bar for pay and quality of life!! It better be a cold day in hell that Republic get's there grubby little paws on those airplanes no mattter if it's to fly as Express or for someone else (ie Midwset, Frontier). Someone needs to take a serious look at the fact that Republic is now a competitor since they are purchasing Midwest and Frontier. You're either an express affiliate or a stand alone airline, NOT both!! If these idiots in Tempe get by with selling the 190's to Republic or anyone else for that matter I sure as hell hope the employees of US Airways (both East and West) revolt like never before!! The 190 fleet needs to grow and bring back some jobs. I don't care who likes to work it or not... It's JOB that needs to stay here!!

Some little voice in my head (besides the ones already there lol) is telling me this has something to do with the fact that the pilots filed a grievence with the company over the fact that express is flying 18 86 seat aircraft too many.
 
What a liar Parker is!!!!!!!

I just watched the PHX Pilot crew news session dated JULY 21st and he told some junior pilot that NO ONE in the company is currently working on reducing the company size as he didn't see it as being a profitable move. (my paraphrasing)

AND not but 2 days JULY 23rd he and Kirby tell analysts that they are researching getting rid of the E 190 fleet to reduce available seats!!!!!!!! What the he##? Isn't that "shrinking" the airline???? Are we that stupid that we don't know what that all means?

Just like Wolfe, Seigel, and Lakefield before.... typical CEO that does not respect their employees and lies right to their faces.

I guess there is no merger coming either... mmmmmmmm
 
What a liar Parker is!!!!!!!

I just watched the PHX Pilot crew news session dated JULY 21st and he told some junior pilot that NO ONE in the company is currently working on reducing the company size as he didn't see it as being a profitable move. (my paraphrasing)

AND not but 2 days JULY 23rd he and Kirby tell analysts that they are researching getting rid of the E 190 fleet to reduce available seats!!!!!!!! What the he##? Isn't that "shrinking" the airline???? Are we that stupid that we don't know what that all means?

Just like Wolfe, Seigel, and Lakefield before.... typical CEO that does not respect their employees and lies right to their faces.

I guess there is no merger coming either... mmmmmmmm
Did you expect anything less?

I'd get worried if they started telling the truth.
 
Instead of getting rid of the most versatile (and comfortable) aircraft in the fleet, why not just get rid of more 300's on both sides and more west 757's.
 
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Instead of getting rid of the most versatile (and comfortable) aircraft in the fleet, why not just get rid of more 300's on both sides and more west 757's.

There is no market for some old Boeings plus we don't own much of anything except for the 190's.

How much money could the 190's bring anyway? 100 - 200 mil?
 
Everything I've heard and read so far suggests that they are only studying the elimination of the E190 fleet as an option to quickly reduce capacity if economic conditions worsen or remain the same for an extended period of time WITHOUT affecting the minimum fleet count. I haven't seen or heard anything to suggest it's something they're going to do. Only that they are looking at it as one option out of many.

I know that I'm personally not thrilled about the idea but I do understand why they are looking at the option. Businesses do this type of thing all the time. They look at ways to reduce costs, gain efficiencies or boost balance sheets in this kind of operating enviroment. Here's hoping they go with other ideas first before resorting to this one.
 
Guys, this has nothing to do with capacity. Hell, the LF out there is 88%...try non-revving lately? It's all about $$$. The press has asserted that LCC has the weakest balance sheet and is the most likely to fail. Parker's just showing an ace up his sleeve. Yea, I got these 25 airframes I got a good deal on, and I can sell 'em for more than I paid for 'em. Let's see...25 times 30-40 million.....
It's probably more about FEAR, i.e., a bargaining chip, a lever to be used in contract negotiations with BOTH pilots and flight attendants.
Bottom line is if the co needs the cash, the 190's go, but must be repainted - can't be run for "US Cactus Mesa-Grande Airways". I think Republic would buy them in a hearbeat and would throw them on Midwest X. (Although, for about the same amount of cash, BBedford could buy the whole shebang seeing LCC's market cap is around 250-300 million...)
Cheers
 
Here's a crazy idea Mr. Parker, if we need to cut capacity get rid of the most uncomfortable airplane we own/fly, the 50 CRJs. Of course I'm sure there's not much of a market for them. Thanks Dave Siegal.
 

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