Search

Notices

C Series Info

Thread Tools
 
Search this Thread
 
Old 08-02-2019, 08:12 AM
  #3711  
veut gagner à la loterie
 
forgot to bid's Avatar
 
Joined APC: Apr 2008
Position: Light Chop
Posts: 23,286
Default

Originally Posted by Mesabah
The thing with GTF engines is they burn significantly more fuel in the climb, so the 321 CEO will actually beat the NEO on short routes.

It doesn't make sense to have any RJs on routes beyond 1.5 hrs of flying, as the A220 will beat it on CASM for any number of passengers.
But what if the market is only 80 seats and it's a 109 seater? Could a 76 seater be more profitable?



I think delta and cseries fans love to talk about the range and fuel efficiency because it's there, but Delta was about to acquire E190s for the job. That is until the CS1 price drop and/or someone at Embraer really personally ****ed off Ed as is rumored.

I think the mission for it is still to upgauge and control of a large portion of the product and fuel efficiency is a side benefit... unless gtf engines keep being a problem.

If fuel efficiency was the mission we would dump A221s for 223s but we just ordered more 221s.

So i bet, and it's my bet, the A220 gets used in ways that make sense, but also in ways that make no sense at all unless you think of it as a jumbo RJ market replacement.

Last edited by forgot to bid; 08-02-2019 at 08:28 AM.
forgot to bid is offline  
Old 08-02-2019, 08:28 AM
  #3712  
:-)
 
Joined APC: Feb 2007
Posts: 7,339
Default

Originally Posted by forgot to bid
But what if the market is only 80 seats and it's a 109 seater? Could a 76 seater be more profitable?



I think delta and cseries fans love to talk about the range and fuel efficiency because it's there, but Delta was about to acquire E190s for the job. That is until the CS1 price drop and/or someone at Embraer really personally ****ed off Ed as is rumored.

I think the mission for it is still to upgauge and control of a large portion of the product. I bet, and it's my bet, the A220 gets used in ways that make sense and no sense at all unless you think of it as a jumbo RJ market replacement.
It likely is mostly a 717 replacement, because I don't see Delta shrinking the 76 seat fleet, and there are a few markets around the system where the 717 didn't have the range to replace the RJ, where the A220 is now being used.

The note due on the 717 for Southwest is something like ~$17 million per plane, there is no way they are going to pay that. We know from the dumping lawsuit Delta is paying ~$20 million for a brand new A220 that is better in every single way.

Last edited by Mesabah; 08-02-2019 at 08:51 AM.
Mesabah is offline  
Old 08-02-2019, 09:05 AM
  #3713  
Gets Weekends Off
 
Joined APC: Apr 2011
Posts: 644
Default

Originally Posted by forgot to bid
But what if the market is only 80 seats and it's a 109 seater? Could a 76 seater be more profitable?



I think delta and cseries fans love to talk about the range and fuel efficiency because it's there, but Delta was about to acquire E190s for the job. That is until the CS1 price drop and/or someone at Embraer really personally ****ed off Ed as is rumored.

I think the mission for it is still to upgauge and control of a large portion of the product and fuel efficiency is a side benefit... unless gtf engines keep being a problem.

If fuel efficiency was the mission we would dump A221s for 223s but we just ordered more 221s.

So i bet, and it's my bet, the A220 gets used in ways that make sense, but also in ways that make no sense at all unless you think of it as a jumbo RJ market replacement.
They only ordered an extra 5 -100s. They have 50 -300s on order for a 45/50 split in favor of the 300.
Aviator147 is offline  
Old 08-02-2019, 09:09 AM
  #3714  
Gets Weekends Off
Thread Starter
 
flyallnite's Avatar
 
Joined APC: Dec 2009
Position: Stay THIRSTY, my friends!
Posts: 1,898
Default

Originally Posted by forgot to bid
But what if the market is only 80 seats and it's a 109 seater? Could a 76 seater be more profitable?



I think delta and cseries fans love to talk about the range and fuel efficiency because it's there, but Delta was about to acquire E190s for the job. That is until the CS1 price drop and/or someone at Embraer really personally ****ed off Ed as is rumored.

I think the mission for it is still to upgauge and control of a large portion of the product and fuel efficiency is a side benefit... unless gtf engines keep being a problem.

If fuel efficiency was the mission we would dump A221s for 223s but we just ordered more 221s.

So i bet, and it's my bet, the A220 gets used in ways that make sense, but also in ways that make no sense at all unless you think of it as a jumbo RJ market replacement.
The reason we are getting more 221's is to keep the delivery pipeline full until the Mobile plant comes online to produce the 223's. Ed also mentioned that there may be another follow on order in a recent video.
flyallnite is offline  
Old 08-02-2019, 09:15 AM
  #3715  
Gets Weekends Off
 
Joined APC: Feb 2008
Posts: 19,424
Default

There is no note due on the 717’s. If Delta chooses to exercise the purchase option it’s at market rates. As discussed in another thread SW only owns 8 or 10 of the 717’s. All the rest are owned by Boeing Capital.
sailingfun is offline  
Old 08-02-2019, 11:27 AM
  #3716  
:-)
 
Joined APC: Feb 2007
Posts: 7,339
Default

Originally Posted by sailingfun
There is no note due on the 717’s. If Delta chooses to exercise the purchase option it’s at market rates. As discussed in another thread SW only owns 8 or 10 of the 717’s. All the rest are owned by Boeing Capital.
You misread my post, the option to purchase was for AirTran(Southwest).

Under the agreement, Delta has the option to purchase at FMV over the next 4 years, but Boeing is likely to continue to lease the aircraft at FMV, (they did this for Hawaiian in 2017, $110,000/mo to $130,000/mo). However, this is still significantly more expensive than a new A220. Under the Trump tax plan, new equipment depreciation is a 100% write-off.
Mesabah is offline  
Old 08-02-2019, 11:45 AM
  #3717  
veut gagner à la loterie
 
forgot to bid's Avatar
 
Joined APC: Apr 2008
Position: Light Chop
Posts: 23,286
Default

Originally Posted by Aviator147
They only ordered an extra 5 -100s. They have 50 -300s on order for a 45/50 split in favor of the 300.
But most orders are for 223 right? We started out with 221s and then swapped a few to 223 but more 221s than most anyone right?
forgot to bid is offline  
Old 08-02-2019, 11:56 AM
  #3718  
veut gagner à la loterie
 
forgot to bid's Avatar
 
Joined APC: Apr 2008
Position: Light Chop
Posts: 23,286
Default

Originally Posted by Mesabah
You misread my post, the option to purchase was for AirTran(Southwest).

Under the agreement, Delta has the option to purchase at FMV over the next 4 years, but Boeing is likely to continue to lease the aircraft at FMV, (they did this for Hawaiian in 2017, $110,000/mo to $130,000/mo). However, this is still significantly more expensive than a new A220. Under the Trump tax plan, new equipment depreciation is a 100% write-off.
Usually monthly lease rental rates are around 1% of the value of the aircraft so its possible those were 11 to 13M 717s which is half a 220 for the same size jet as A221.
forgot to bid is offline  
Old 08-02-2019, 11:59 AM
  #3719  
Gets Weekends Off
 
Joined APC: Apr 2011
Posts: 644
Default

Originally Posted by forgot to bid
But most orders are for 223 right? We started out with 221s and then swapped a few to 223 but more 221s than most anyone right?
if youre saying we have more -100s than any other airline, I believe thats true.... but we will also have more 300s than 100s when its all said and done.

https://en.wikipedia.org/wiki/List_o...and_deliveries
Aviator147 is offline  
Old 08-02-2019, 12:15 PM
  #3720  
:-)
 
Joined APC: Feb 2007
Posts: 7,339
Default

Originally Posted by forgot to bid
Usually monthly lease rental rates are around 1% of the value of the aircraft so its possible those were 11 to 13M 717s which is half a 220 for the same size jet as A221.
The A220 is discounted an additional 20% off due to the tax write off. Then, there is the reduced maintenance cost of a new aircraft/MRO, the significantly less fuel burn, and the economy of scale with the -300. There is also the additional revenue opportunity because the A221 is a far more capable aircraft.
Mesabah is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
acousticgrace
Regional
10
09-25-2014 10:37 AM
rmr1992
Cargo
24
09-11-2014 09:17 AM
Horhay
United
131
02-13-2013 10:58 PM
fartsarefunny
Foreign
6
06-14-2012 05:17 AM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



Your Privacy Choices