Attrition
12-13-2022, 05:14 AM
#2951
Gets Weekends Off
Joined APC: Jun 2010
Position: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.
Posts: 6,829
$20,000-24,000 is literally pennies in that case.
12-13-2022, 06:10 AM
#2953
Gets Weekends Off
Joined APC: May 2015
Posts: 469
got ya. Keep in mind 20k today will more than likely be north of 200k in 3 decades. So you are taking from your future self, a decent chunk. However anyone with 30 years left at any airline will retire with millions. And 20/200k is indeed not a huge deal in a 30 year bucket and wouldn’t factor too much in my decision if I wanted to work somewhere else. It’s not nothing . But not a huge factor when deciding.
12-13-2022, 06:22 AM
#2954
Gets Weekends Off
Joined APC: Mar 2017
Position: Student of the game
Posts: 1,026
got ya. Keep in mind 20k today will more than likely be north of 200k in 3 decades. So you are taking from your future self, a decent chunk. However anyone with 30 years left at any airline will retire with millions. And 20/200k is indeed not a huge deal in a 30 year bucket and wouldn’t factor too much in my decision if I wanted to work somewhere else. It’s not nothing . But not a huge factor when deciding.
12-13-2022, 06:27 AM
#2955
Perennial Reserve
Joined APC: Jan 2018
Posts: 12,252
While we are talking future money
Newest Fitch analysis on recent loan money:
https://www.fitchratings.com/research/corporate-finance/correction-fitch-downgrades-spirit-to-b-rates-senior-secured-notes-bb-rr1-12-12-2022
I think the bottom line is that if NK doesn’t get its equipment utilization up and start making money, things will only get worse. Now they don’t HAVE to expand, but they are unlikely to be able to afford the new aircraft coming in if they can’t profitably utilize them. Underutilization is sort of like parking aircraft, except more maintenance expense. They could likely sell delivery spots and forgo leases, but that impacts expansion for years - especially with the supply chain problems Airbus has. And the deal with JetBlue may not allow them to do that. A lot of JB 320s are getting long in the tooth and the planned acquisition was as much about buying those future order positions as it was about acquiring the pilot group.
https://www.fitchratings.com/research/corporate-finance/correction-fitch-downgrades-spirit-to-b-rates-senior-secured-notes-bb-rr1-12-12-2022
I think the bottom line is that if NK doesn’t get its equipment utilization up and start making money, things will only get worse. Now they don’t HAVE to expand, but they are unlikely to be able to afford the new aircraft coming in if they can’t profitably utilize them. Underutilization is sort of like parking aircraft, except more maintenance expense. They could likely sell delivery spots and forgo leases, but that impacts expansion for years - especially with the supply chain problems Airbus has. And the deal with JetBlue may not allow them to do that. A lot of JB 320s are getting long in the tooth and the planned acquisition was as much about buying those future order positions as it was about acquiring the pilot group.
12-13-2022, 06:32 AM
#2956
Gets Weekends Off
Joined APC: Mar 2017
Position: Student of the game
Posts: 1,026
Newest Fitch analysis on recent loan money:
https://www.fitchratings.com/research/corporate-finance/correction-fitch-downgrades-spirit-to-b-rates-senior-secured-notes-bb-rr1-12-12-2022
I think the bottom line is that if NK doesn’t get its equipment utilization up and start making money, things will only get worse. Now they don’t HAVE to expand, but they are unlikely to be able to afford the new aircraft coming in if they can’t profitably utilize them. Underutilization is sort of like parking aircraft, except more maintenance expense. They could likely sell delivery spots and forgo leases, but that impacts expansion for years - especially with the supply chain problems Airbus has. And the deal with JetBlue may not allow them to do that. A lot of JB 320s are getting long in the tooth and the planned acquisition was as much about buying those future order positions as it was about acquiring the pilot group.
https://www.fitchratings.com/research/corporate-finance/correction-fitch-downgrades-spirit-to-b-rates-senior-secured-notes-bb-rr1-12-12-2022
I think the bottom line is that if NK doesn’t get its equipment utilization up and start making money, things will only get worse. Now they don’t HAVE to expand, but they are unlikely to be able to afford the new aircraft coming in if they can’t profitably utilize them. Underutilization is sort of like parking aircraft, except more maintenance expense. They could likely sell delivery spots and forgo leases, but that impacts expansion for years - especially with the supply chain problems Airbus has. And the deal with JetBlue may not allow them to do that. A lot of JB 320s are getting long in the tooth and the planned acquisition was as much about buying those future order positions as it was about acquiring the pilot group.
12-13-2022, 06:33 AM
#2957
Gets Weekends Off
Joined APC: Sep 2021
Posts: 263
Newest Fitch analysis on recent loan money:
https://www.fitchratings.com/research/corporate-finance/correction-fitch-downgrades-spirit-to-b-rates-senior-secured-notes-bb-rr1-12-12-2022
I think the bottom line is that if NK doesn’t get its equipment utilization up and start making money, things will only get worse. Now they don’t HAVE to expand, but they are unlikely to be able to afford the new aircraft coming in if they can’t profitably utilize them. Underutilization is sort of like parking aircraft, except more maintenance expense. They could likely sell delivery spots and forgo leases, but that impacts expansion for years - especially with the supply chain problems Airbus has. And the deal with JetBlue may not allow them to do that. A lot of JB 320s are getting long in the tooth and the planned acquisition was as much about buying those future order positions as it was about acquiring the pilot group.
https://www.fitchratings.com/research/corporate-finance/correction-fitch-downgrades-spirit-to-b-rates-senior-secured-notes-bb-rr1-12-12-2022
I think the bottom line is that if NK doesn’t get its equipment utilization up and start making money, things will only get worse. Now they don’t HAVE to expand, but they are unlikely to be able to afford the new aircraft coming in if they can’t profitably utilize them. Underutilization is sort of like parking aircraft, except more maintenance expense. They could likely sell delivery spots and forgo leases, but that impacts expansion for years - especially with the supply chain problems Airbus has. And the deal with JetBlue may not allow them to do that. A lot of JB 320s are getting long in the tooth and the planned acquisition was as much about buying those future order positions as it was about acquiring the pilot group.
12-13-2022, 06:53 AM
#2958
That/It/Thang
Joined APC: Aug 2020
Posts: 2,967
We could also make a deal to sell those delivery slots to jetBlue. Might be a win-win. They get more planes immediately and we reduce our overhead. But I also agree that our utilization isn't great. From what I've heard management is deeply traumatized by the meltdowns and is afraid of maxing out utilization out of fear of another.
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