Boyd Group AA Analysis
#31
#33
Its not only fuel (a huge part of the equation) but the per person operating costs are just too high even without fuel. Back in the RJ heyday, the main reason you wanted them was to raid another airline's hub/network with a low segment cost (even if it was a high per pax cost) so every airline panic ordered a million of them. Once everyone had a ton of them, no one had a competitive advantage from them. In addition to fuel going way up, most of the RJs were bought at real estate bubble-esque prices from the MBA blunder mass order peak.
This is one area that will be a huge win for AA. Getting out of the RJ albatross at rock bottom demand for the airframes. The ones they end up keeping will be almost free. The other legacies were trying to beat up on their aircraft leases in BK when the RJ was at bubble prices. Add that to the multi billion dollar mistakes/mistiming of the era of RJ outsourcing.
This is one area that will be a huge win for AA. Getting out of the RJ albatross at rock bottom demand for the airframes. The ones they end up keeping will be almost free. The other legacies were trying to beat up on their aircraft leases in BK when the RJ was at bubble prices. Add that to the multi billion dollar mistakes/mistiming of the era of RJ outsourcing.
Carl
#34
The New York times had an article talking about Boyd ..
Also had a nice article referring to a Captain of AA , and how the labor unions are going to get screwed in return for management making profits for themselves.
Also had a nice article referring to a Captain of AA , and how the labor unions are going to get screwed in return for management making profits for themselves.
#37
#39
Bracing for Fallacies
Joined APC: Jul 2007
Position: In favor of good things, not in favor of bad things
Posts: 3,543
"For passengers," he said, "nothing will change other than a potential deterioration of the already mediocre level of service provided by employees who have been beaten down for so long that it is hard for them to come to work with a positive outlook."
Please attach this to the "Sign up for the RJ transition course today!" ads. Kind of like a surgeon general's warning label.
Please attach this to the "Sign up for the RJ transition course today!" ads. Kind of like a surgeon general's warning label.
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ArcticDog
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12-26-2008 08:08 AM