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.