Why not Embraer?
07-28-2024, 11:15 AM
#1
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Joined APC: Sep 2016
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Why not Embraer?
I mean, a large part of our network is out of whack because we have way too many 150+ seat aircraft. I think SWA used to be about 1:2 and now it's 2:1. We need aircraft and Airbus is only interested in building 321s, which doesn't fit the business plan/route structure. SWA could have E195-E2s as soon as they're ready to take delivery. The range and efficiency of the E2s is commendable. Embraer very well may be manufacturing a larger narrow body soon and SWA could be the launch customer. The only think it's missing is the MAX7 range, but do we really need 2/3rds of the fleet to be able to fly from DEN to LIH? Is there some huge downside that the E2s have?
07-28-2024, 12:22 PM
#4
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Yes there is a fixed cost of having an additional parts inventory. But as revenue amounts increase, the relative cost of those fixed costs decrease. The opportunity cost of sitting around and waiting for Boeing to deliver an airplane six years late may, in fact, exceed the cost of buying a few more replacement parts.
07-28-2024, 12:42 PM
#5
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Yes there is a fixed cost of having an additional parts inventory. But as revenue amounts increase, the relative cost of those fixed costs decrease. The opportunity cost of sitting around and waiting for Boeing to deliver an airplane six years late may, in fact, exceed the cost of buying a few more replacement parts.
07-28-2024, 03:29 PM
#6
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I mean, a large part of our network is out of whack because we have way too many 150+ seat aircraft. I think SWA used to be about 1:2 and now it's 2:1. We need aircraft and Airbus is only interested in building 321s, which doesn't fit the business plan/route structure. SWA could have E195-E2s as soon as they're ready to take delivery. The range and efficiency of the E2s is commendable. Embraer very well may be manufacturing a larger narrow body soon and SWA could be the launch customer. The only think it's missing is the MAX7 range, but do we really need 2/3rds of the fleet to be able to fly from DEN to LIH? Is there some huge downside that the E2s have?
07-28-2024, 03:48 PM
#7
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Joined APC: Aug 2007
Position: Boeing 737
Posts: 4,804
Completely disagree. The E2 would allow us to fly long, thin routes. More importantly to connect smaller cities to the network. Think Knoxville, Burlington, Greensboro, Daytona etc… There are WAY more opportunities at this airline for small airplanes than there are for widebodies. The E2 isn’t the A220, and it’s not a replacement for the -700, but it’s a stellar airplane that could truly fill out the network.
07-28-2024, 04:57 PM
#8
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07-28-2024, 05:18 PM
#9
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It wouldn't fly between major cities/hubs except for off peak times.
07-28-2024, 05:22 PM
#10
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