Well, the history of this industry is that an airline can hang on a long time but that's based on a few big airlines that have eventually gone under. In the case of FlyI....
They lost almost $100 million in 2Q05 and burned thru about $100 million in cash between 6/30/04 and 6/30/05. They were down to about $65 million in unrestricted cash at the end of 2Q05.
With the arrival of the A319's and reduction in CRJ-200's, their CASM had declined from over 18 cents to 17.1 cents between 2Q04 and 2Q05. Not exactly "low cost" for them to be competing as a "low cost carrier". The speculation is that UAL will spread the coming Emb-170's (27 by the end of 05 and 77 more next year) between ORD and IAD, putting furthur pressure on FlyI with a more comfortable, capable airplane offering a mainline "experience" - 3 classes of service (F/C with 38" seat pitch, economy plus with 33" pitch, and coach, plus the normal UAL mainline inflight service.
NWA hasn't been specific on airplane type that I've seen, but I think I may have "mis-spoke" - they may be planning on the new division flying 70-100 seaters. That's pretty much the Emb-170/190 family.
I couldn't have said it any better myself!!!! Those Damn things were nothing more than a tool to screw everyone in the Industry out of a decent wage. Now that everyone has been "Expressed" to death, they can go rot in Boneyard. Nearly 3/4 of the System is Express earning poverty level wages.Too bad what remains of the U.S. aircraft manufacturing sector dropped the ball on this niche of airliner.
I miss the days of "Regional Aircraft" such as the Convair 580, B737-200, DC-9, little Fokker's. Hopefully, the 50 seat RJ's can be fitted with remote controls and used as target drones at Tyndall AFB down in Florida. A fitting end to a product that was only used by its purchasers to outsource flying and jobs to lower wage enitities.
Well, the history of this industry is that an airline can hang on a long time but that's based on a few big airlines that have eventually gone under. In the case of FlyI....
They lost almost $100 million in 2Q05 and burned thru about $100 million in cash between 6/30/04 and 6/30/05. They were down to about $65 million in unrestricted cash at the end of 2Q05.
With the arrival of the A319's and reduction in CRJ-200's, their CASM had declined from over 18 cents to 17.1 cents between 2Q04 and 2Q05. Not exactly "low cost" for them to be competing as a "low cost carrier". The speculation is that UAL will spread the coming Emb-170's (27 by the end of 05 and 77 more next year) between ORD and IAD, putting furthur pressure on FlyI with a more comfortable, capable airplane offering a mainline "experience" - 3 classes of service (F/C with 38" seat pitch, economy plus with 33" pitch, and coach, plus the normal UAL mainline inflight service.
B) Airbus refunded (!) a bunch of deposits on aircraft that they delayed delivery of.
I couldn't have said it any better myself!!!! Those Damn things were nothing more than a tool to screw everyone in the Industry out of a decent wage. Now that everyone has been "Expressed" to death, they can go rot in Boneyard. Nearly 3/4 of the System is Express earning poverty level wages.
Expect rightsizing at Ueast to continue.