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Old 02-22-2013, 04:16 AM
  #123511  
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Originally Posted by forgot to bid
Well, lets do the math real quick. Supposedly we're not merging with anyone. We might acquire 11 744s because 773s are not at our cheap price point (maybe this airline is run by airline pilots after all? ). That's 330 WB pilots eh? And we are talking about either 737s or A320s and either way, we want the OEM to take 50 seaters off our hands.

So what would we be willing to give up to get all that?
So, according to your numbers, we could conservatively say that we could get the best of the lot of used 744, with new interiors, for around 40 mil each, which means we could have 11 of them for less than 2 777-300 at list price. Heck, we could probably pay cash for that. It would take a long time for 777 economics to make up for that difference.
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Old 02-22-2013, 04:30 AM
  #123512  
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Originally Posted by Wilbur Wright
Correct. The fences come down for the AE after December 31, 2014.
I'm checking the dates but I thought SOC was 08
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Old 02-22-2013, 04:40 AM
  #123513  
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Nope found it Dec 09.
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Old 02-22-2013, 05:24 AM
  #123514  
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Originally Posted by DALMD88FO
Nope found it Dec 09.
I don't know how the fence language is written for the DAL/NWA merger but the fences for the NWA/ REP merger only covered airplanes on the property at SOC. Any additional aircraft of the same type acquired after that date was shared 1 for 1 between the two groups. The only exception was if newly acquired aircraft were deemed to be replacement aircraft for fenced aircraft. (A330 for DC-10 as an example)
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Old 02-22-2013, 05:26 AM
  #123515  
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Originally Posted by nwaf16dude
So, according to your numbers, we could conservatively say that we could get the best of the lot of used 744, with new interiors, for around 40 mil each, which means we could have 11 of them for less than 2 777-300 at list price. Heck, we could probably pay cash for that. It would take a long time for 777 economics to make up for that difference.
I don't know what they'd be, Carl said less than half which is anywhere from $150M to $0. But who knows you may be right on.
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Old 02-22-2013, 05:27 AM
  #123516  
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Originally Posted by tsquare
Temporarily or 'permanently'?
T;
Its not cool to look under Oz's bathrobe.

Which is another way to say don't think critically.
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Old 02-22-2013, 05:32 AM
  #123517  
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Originally Posted by forgot to bid
I don't know what they'd be, Carl said less than half which is anywhere from $150M to $0. But who knows you may be right on.
What are the economics of the 747-400. Something simple that shows max pax and max cargo (actually carried) vs fuel burned for a long haul flight.

Or, vacation pax ATL to MCO.

Where the 777 really shines is low fuel burn, especially late in the trip segment on an ULH.
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Old 02-22-2013, 05:33 AM
  #123518  
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To add to the used 744 discussion - a LCA from my base said he spoke with a Boeing employee in the back while DH'ing about 7-8 months ago, who said it was his job to look for used 744's for Delta. Didn't give it much thought at the time. But it may help add something to the discussion now.
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Old 02-22-2013, 05:35 AM
  #123519  
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Originally Posted by maddogmax
I don't know how the fence language is written for the DAL/NWA merger but the fences for the NWA/ REP merger only covered airplanes on the property at SOC. Any additional aircraft of the same type acquired after that date was shared 1 for 1 between the two groups. The only exception was if newly acquired aircraft were deemed to be replacement aircraft for fenced aircraft. (A330 for DC-10 as an example)
And youze guys ALWAYS agreed on what was and what wasn't a replacement AC

Hows retirement? Good to see ya on here!!

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Old 02-22-2013, 05:38 AM
  #123520  
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Originally Posted by nwaf16dude
So, according to your numbers, we could conservatively say that we could get the best of the lot of used 744, with new interiors, for around 40 mil each, which means we could have 11 of them for less than 2 777-300 at list price. Heck, we could probably pay cash for that. It would take a long time for 777 economics to make up for that difference.
The 747 if used on a daily 10 hour round trip flight burns in excess of 20 million dollars a year more fuel then the 777 300. The question becomes how much additional revenue can the 747 generate.

Edit: A forum reader just emailed me and stated the number is closer to 30 million a year at 3.50 a gallon for fuel.

Last edited by sailingfun; 02-22-2013 at 05:53 AM.
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