Slot Transaction, E-190 Sale, Crew Base Closures, & Realignment Designed to Shop the Company for Sal

I thought that last statement about leasing back most of the E-190's strange. I don't know of course but maybe it's a win-win for both of us. Do you suppose we're leasing them until they get enough pilots trained on them? :blink:

Or is this a double backward flip where we sell the remaining E-190's to them and then we lease them back thus providing the financing for Republic?
 
flybynite said:
I thought that last statement about leasing back most of the E-190's strange. I don't know of course but maybe it's a win-win for both of us. Do you suppose we're leasing them until they get enough pilots trained on them? :blink:
Click to expand...

It's the same arrangement that the sale of the MDA E170's had. While I certainly don't know, I assume that it was at least partially to give Repbulic time to train pilots/FA's.

Or is this a double backward flip where we sell the remaining E-190's to them and then we lease them back thus providing the financing for Republic?
Click to expand...

If that happened, it wouldn't actually provide the financing for Republic - they'd still have to come up with the money to buy the airplanes. It would provide the money to make payments on the financing, either temporarily if the planes transitioned to Republic over time like the 170's and the first 10 190's or long term if US just kept operating them. In fact, the latter would be no different than any other sale/lease back deal that US would enter for new airplanes - get the airplane, sale it to a leasing company (or Republic in this case) to get the cash, then make lease payments.

Jim
 
flybynite,

I should have added one tidbit. While Republic would have to come up with the financing for the additional 15 E190's, they could do a sale/leaseback if the planes would actually be flown by them or EETC (mortgage) if there were to be a long-term leaseback to US.

Jim
 
nycbusdriver said:
it must be a rotten deal for USAirways.
Click to expand...

For whatever my opinion is worth, I still say the greater US control of DCA slots would be an impediment to approval of a merger with any of the legacy carriers. Of course, I'm the one who said "Why would anyone want to merge with US" a few months before the US/HP merger rumors surfaced...

Jim
 
BoeingBoy said:
For whatever my opinion is worth, I still say the greater US control of DCA slots would be an impediment to approval of a merger with any of the legacy carriers. Of course, I'm the one who said "Why would anyone want to merge with US" a few months before the US/HP merger rumors surfaced...

Jim
Click to expand...

Jim, growing at DCA, shrinking at LGA and to a smaller extent BOS could bode well for a merger with a non legacy carrier based at JFK flying A-320's and E-190's painted blue.

Cheers

LGA777
 
LGA777 said:
Jim, growing at DCA, shrinking at LGA and to a smaller extent BOS could bode well for a merger with a non legacy carrier based at JFK flying A-320's and E-190's painted blue.

Cheers

LGA777
Click to expand...

That is exactly what I have been thinking for quite a while now.
 
LGA777 said:
Jim, growing at DCA, shrinking at LGA and to a smaller extent BOS could bode well for a merger with a non legacy carrier based at JFK flying A-320's and E-190's painted blue.
Click to expand...

US has dumped NY-Florida and BOS-Florida flying for years, because it's "unprofitable." HP dumped it's transcons because they were "unprofitable." So US/HP would hook up with an airline that flys lots of trancons and NY-Florida flying. Got it.

Not gonna happen. Why ruin B6?
 
LGA777 said:
Jim, growing at DCA, shrinking at LGA and to a smaller extent BOS could bode well for a merger with a non legacy carrier based at JFK flying A-320's and E-190's painted blue.

Cheers

LGA777
Click to expand...

I don't know whether it would bode well for such a merger, but the DCA slot concentration wouldn't be an impediment like it would be for a merger with another legacy carrier (IMHO) - which is why I specified a merger with another legacy in my earlier post.

Aside from B6, the same would be true of the slot issue with a merger with Hawaiian or any other carrier that didn't have slots at DCA (although I get your point about B6's fleet compatibility).

Jim
 
The following article discusses consolidation plans (e.g., the current crew base reductions) and their assumed affects on employees. There is also some discussion on where this all leads - merger, etc. and the normal US Air abandoned us (PIT) sermon. I thought this statement was interesting: "Lucchino agreed, but noted US Airways' management team is composed of executives from the former American West."They probably have no recollection of history, nor should they. They're Arizonian," he said. "Pittsburgh is just a place on the map, a destination, to them"".

"US Airways moves deflate work force, dreams"
http://www.pittsburghlive.com/x/pittsburgh...s/s_657575.html
 
I think this says it all when it comes to the quality of the journalism in this article.

"Lucchino agreed, but noted US Airways' management team is composed of executives from the former American West."

I did find this interesting though.

"The airline lost $40 million in Pittsburgh in 2007, but cuts here stabilized the market, the airline spokesman added."

That's a hefty chunk of change to loose in one city.
 
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