How Will Bankrupcy Affect Mda Classes
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USA320Pilot
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- May 18, 2003
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It's my understanding that US Airways will temporarily stop taking delivery of the EMB-170 after the 22nd aircraft is delivered.
Today the Financial Times reported "at the centre of US Airways' transformation plan is its proposal to buy 170 regional jets from Embraer of Brazil and Bombardier of Canada. In a filing on Sunday it identified these two companies as its biggest unsecured creditors - Embraer has $1.46bn and Bombardier $948m in exposure in the form of future aircraft commitments. However, there are now significant concerns about the financing for these future aircraft orders. On Sunday, Eric Jones, spokesman for Gecas, the aircraft leasing arm of General Electric, which was to have provided a big part of the financing, told the FT, it had "suspended financing for US Airways' regional jets for now".
Complete Story
US Airways' latest proposal to ALPA is to add EMB-190/195 and CRJ-900 aircraft to MDA and PSA, respectivley. In my opinion, with a competitive cost structure US Airways will regain access to the capital markets.
Regards,
USA320Pilot
Today the Financial Times reported "at the centre of US Airways' transformation plan is its proposal to buy 170 regional jets from Embraer of Brazil and Bombardier of Canada. In a filing on Sunday it identified these two companies as its biggest unsecured creditors - Embraer has $1.46bn and Bombardier $948m in exposure in the form of future aircraft commitments. However, there are now significant concerns about the financing for these future aircraft orders. On Sunday, Eric Jones, spokesman for Gecas, the aircraft leasing arm of General Electric, which was to have provided a big part of the financing, told the FT, it had "suspended financing for US Airways' regional jets for now".
Complete Story
US Airways' latest proposal to ALPA is to add EMB-190/195 and CRJ-900 aircraft to MDA and PSA, respectivley. In my opinion, with a competitive cost structure US Airways will regain access to the capital markets.
Regards,
USA320Pilot
USAirBoyA330
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Who provides the financing for the EMB170? Isn't it partly the government of Brazil? I might be mistaken but may 320 knows...maybe GECAS.
Air conditioned
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USA320Pilot said:
Thanks for the link, USA320Pilot. What is so special about aircraft number 22? Are the companies supposed to reexamine the deal after this one is delivered perhaps?
Also, not to mimic DCAflyer, but how many do we have now? 19? 20?
Light Years
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- Aug 27, 2002
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I believe MD822 is already on the property.
I though I read in an article today that deliveries will continue to US (sorry, "MidAtlantic") and PSA as normal... but it could have been wrong.
One of the most significant, but overlooked aspects of the company's plans is the addition of 90-100 jets. That means 737 phase-outs, mainline furloughs with MDA offers for crews which will mostly be turned down, and MDA or mainline express contracts for ground personnell in most of the stations. US Airways would be the network/hybrid carrier with commuter costs, lower than LCCs.
I though I read in an article today that deliveries will continue to US (sorry, "MidAtlantic") and PSA as normal... but it could have been wrong.
One of the most significant, but overlooked aspects of the company's plans is the addition of 90-100 jets. That means 737 phase-outs, mainline furloughs with MDA offers for crews which will mostly be turned down, and MDA or mainline express contracts for ground personnell in most of the stations. US Airways would be the network/hybrid carrier with commuter costs, lower than LCCs.
The 22nd aircraft made it to the property last Saturday. MDA does not have enough crews to fly 22 aircraft. The class that started today will continue. Next weeks class is not yet known. There are several 170's parked due to lack of flight crews. I would imagine there could be a delay in future orders, but the training will probably continue. Once the training catches up, maybe the future deliveries and financing will be worked out...
L
luvn737s
Guest
Question 1- How can an airline hope to save itself flying new airplanes that cost more per seat-mile to operate and whose size caps the revenue potential and which can only be profitable at exploitative wages?
Question 2 -Can anyone point to an airline that has proven this strategy to be profitable? (Midway? Independence?)
Question 2 -Can anyone point to an airline that has proven this strategy to be profitable? (Midway? Independence?)
Air conditioned
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I just spoke with a friend of mine who began MAA f/a class today...she said they were told that aircraft deliveries would be suspended temporarily but they still hoped to have 32 planes by the end of the year.
The trainers weren't sure how many more f/a classes they would have this year now that ch 11 has been filed. Apparently the vice president spoke to the class, though, and was very optimistic.
Out of the 50 f/as that were supposed to show up for class, there were only a handful this time that didn't. I guess most of the crew shortage is due to pilots...they can't seem to get any/enough/some. :blink:
The trainers weren't sure how many more f/a classes they would have this year now that ch 11 has been filed. Apparently the vice president spoke to the class, though, and was very optimistic.
Out of the 50 f/as that were supposed to show up for class, there were only a handful this time that didn't. I guess most of the crew shortage is due to pilots...they can't seem to get any/enough/some. :blink:
ATTENTION
For the last time. Real Simple like...
IF US Airways average load factor is near 75% (more or less), then that means the average mainline aircraft flight is flying 3/4th's full, right...?
If a A319 or 737 has 120 seats, then that means that only 90 seats are full, right...?
It costs more in fuel, crew, and support to operate a A319 or B737 from point A to B than it does the E-190 overall (per flight, not per seat), right...?
So why would you spend more to fly the same amount of passengers in a 3/4th full plane (on the same route), when you could fly the same number of pax cheaper in a full E-190 (and keep more profit), huh...?
Average per seat costs sure sound like a solid reason to use the Airbus or B737, until you factor in that only 90 of their seats are creating revenue ON AVERAGE. This is why they do not place a 320 or 400 on every route, rather than a 319 or 300 (ummm, like the shuttle routes )
Ahhhhh. hope it was simple enough for everyone to understand...?
Now, IF you have a fleet, that ranges from 70, to 90, to 120, and larger... Yet are of a common family (E-Jet and Airbus), then you have the flexibility to place the right sized plane best suited for each market. (rather than having to shoulder the additional costs of multiple fleet types.
Now do you start to see why the EJets are a competitive advantage...?
For the last time. Real Simple like...
IF US Airways average load factor is near 75% (more or less), then that means the average mainline aircraft flight is flying 3/4th's full, right...?
If a A319 or 737 has 120 seats, then that means that only 90 seats are full, right...?
It costs more in fuel, crew, and support to operate a A319 or B737 from point A to B than it does the E-190 overall (per flight, not per seat), right...?
So why would you spend more to fly the same amount of passengers in a 3/4th full plane (on the same route), when you could fly the same number of pax cheaper in a full E-190 (and keep more profit), huh...?
Average per seat costs sure sound like a solid reason to use the Airbus or B737, until you factor in that only 90 of their seats are creating revenue ON AVERAGE. This is why they do not place a 320 or 400 on every route, rather than a 319 or 300 (ummm, like the shuttle routes
)Ahhhhh. hope it was simple enough for everyone to understand...?
Now, IF you have a fleet, that ranges from 70, to 90, to 120, and larger... Yet are of a common family (E-Jet and Airbus), then you have the flexibility to place the right sized plane best suited for each market. (rather than having to shoulder the additional costs of multiple fleet types.
Now do you start to see why the EJets are a competitive advantage...?
L
luvn737s
Guest
No. It sounds like a losers strategy. If you invest in an airplane that cannot grow a market all you are doing is trying to win by not losing. I'm still waiting for the list of airlines who have seen the expensive little jet pay off.
L
luvn737s
Guest
Also, it sounds like the RJ supporters feel a market that once supported a large jet ( you know hick towns like DCA) will now only support a smaller, more expensive one. What happened, did everyone move out of town?
1. US Airways, that is good enough for me.
Larger aircraft have their place, but so do smaller aircraft. If 70 or 90 people need to go somewhere, there is no better aircraft to do it. Esp not a larger mainlne aircraft just hauling around empty seats for no reason.
Using your logic, why bother with narrowbodies, why not use a 767 everwhere you fly...?
Ahhh, because you do not always fill up a 767 on every route, do you...? So you use a smaller aircraft, with lower costs (per flight) to carry the smaller number of people on the same route.
Same idea...
Anyways, if the Ejets are such a stupid idea, then why has jetBlue plunked down millions already to get ahold of the first ones, why is SWA looking at them seriously...?
But hey, what do they know about operating economics, right...?
Larger aircraft have their place, but so do smaller aircraft. If 70 or 90 people need to go somewhere, there is no better aircraft to do it. Esp not a larger mainlne aircraft just hauling around empty seats for no reason.
Using your logic, why bother with narrowbodies, why not use a 767 everwhere you fly...?
Ahhh, because you do not always fill up a 767 on every route, do you...? So you use a smaller aircraft, with lower costs (per flight) to carry the smaller number of people on the same route.
Same idea...
Anyways, if the Ejets are such a stupid idea, then why has jetBlue plunked down millions already to get ahold of the first ones, why is SWA looking at them seriously...?
But hey, what do they know about operating economics, right...?
Oh, and before you go running around acting like you know everything (cause that really annoys those of us that do)...
DCA is a special case, and the E-170 is perfect for it. It fits under restrictions on larger aircraft allowing it to use "regional" slots. It also allows US to use a far superior product than the competition has (CRJ, ERJ), or compete head to head with their larger aircraft on softer routes.
Also a perfect addition to the softer Shuttle frequencies, while DAL is stuck using 737's and AAL uses ERJ's
Plus, what is your beef, Mainline is picking up routes out of DCA, duh.
Do not mess with MDA... :angry: I make it a point not to let that weak stuff slide by on hereh34r:
DCA is a special case, and the E-170 is perfect for it. It fits under restrictions on larger aircraft allowing it to use "regional" slots. It also allows US to use a far superior product than the competition has (CRJ, ERJ), or compete head to head with their larger aircraft on softer routes.
Also a perfect addition to the softer Shuttle frequencies, while DAL is stuck using 737's and AAL uses ERJ's
Plus, what is your beef, Mainline is picking up routes out of DCA, duh.
Do not mess with MDA... :angry: I make it a point not to let that weak stuff slide by on here
h34r:
