Orders?
11-16-2016, 09:50 AM
#1
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Orders?
So what's this about:
United Airlines Takes Over Republic Order for 24 Embraer 175s
Let the experts speak
United Airlines Takes Over Republic Order for 24 Embraer 175s
Let the experts speak
11-16-2016, 10:24 AM
#2
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So what's this about:
United Airlines Takes Over Republic Order for 24 Embraer 175s
Let the experts speak
United Airlines Takes Over Republic Order for 24 Embraer 175s
Let the experts speak
It makes sense to buy the RJs, if a regional folds, can't staff or goes bankrupt and demands higher prices from United, we can reposes the jets and move them elsewhere. Maybe even mainline.
All 3 airlines lost their shirts when Republic went bankrupt. RAH owned the jets that they needed and bent them over for more money in court. Lesson learned maybe? Just my theory.
11-16-2016, 11:21 AM
#3
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Posts: 112
It means nothing more than we are buying our regional jets. We already own Mesas fleet of 175's and maybe a few of the SkyWest 175's. I think United owns close to 100 175s with this anouncement.
It makes sense to buy the RJs, if a regional folds, can't staff or goes bankrupt and demands higher prices from United, we can reposes the jets and move them elsewhere. Maybe even mainline.
All 3 airlines lost their shirts when Republic went bankrupt. RAH owned the jets that they needed and bent them over for more money in court. Lesson learned maybe? Just my theory.
It makes sense to buy the RJs, if a regional folds, can't staff or goes bankrupt and demands higher prices from United, we can reposes the jets and move them elsewhere. Maybe even mainline.
All 3 airlines lost their shirts when Republic went bankrupt. RAH owned the jets that they needed and bent them over for more money in court. Lesson learned maybe? Just my theory.
11-16-2016, 11:35 AM
#4
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Posts: 2,639
The method of payment (own vs lease) changed AND it saves UA money because UA can finance for less than a regional can lease.
Since UA reimburses the lease payment UA is ultimately on the hook either way. As mentioned this also gives UA ultimate control of the frames.
11-16-2016, 01:55 PM
#6
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The only asterisk on that is that it sort of kills the "we are deferring the -700's to reduce CAPEX" when they turn around and spend $600 million of the $1.6 Billion saved on E175's. The other Billion is forecast to be returned to the shareholders. So if it's not about the CAPEX, what is it about?
Scope is my guess. I would not AT ALL be surprised to see a SNB order soon to unlock the 76 seaters
Scope is my guess. I would not AT ALL be surprised to see a SNB order soon to unlock the 76 seaters
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