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35 RJ's for ASA?

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Given DL's financial condition, I just can't see DL taking on more debt to get these planes. DL's credit rating is in the toilet (thanks in part to the RJ buying binge) and the added costs related to DL's poor credit could easily offset any gains made by keeping the flights with the WO's.

Of course, if DL is really smart they'll cancel the RFP altogether and save their money for something that actually improves the company. DL is reevaluating the business plan, so anything is possible.
 
Medflyer,

Didn't USAir just order $4.5 billion worth of RJs in Bankruptcy? How about Air Canada? They just had a huge order of EMB and CRJ aircraft? They, too, are in bankruptcy. Explain that please...We have over $3 billion in cash (after getting the $325 million closed yesterday in convertable bonds....). It looks like it doesn't really matter....


Bye Bye--General Lee;) :rolleyes:
 
have you seen some of the current plans for those big RJ orders that US airways has?

this was taken from an article from last week..


Observers speculated all the focus on regional jets could suggest a rethinking of MidAtlantic even before it has a chance to begin. The company is worried that GE Capital Corp., which financed a large order last year for the RJS from Brazilian aircraft maker Embraer and Canadian aircraft maker Bombardier Aerospace, would pull its commitments if the airline's junk credit rating falls any further.

To prevent that from happening, US Airways is contemplating a strategy that would involve selling or transferring some of the RJs on order to other US Airways Express commuter operators not owned by US Airways. That way, the planes would still operate under the US Airways banner, but the company could relieve itself from the costs of operating and staffing them.

Such a change would require the approval of the pilots union. "The company needs to extricate itself from direct operation of regional jets," said local airline analyst Bill Lauer, and is likely conducting a "massive rethink" of MidAtlantic because of the capital expenditures it would require.

US Airways has already contacted Phoenix-based Mesa Air about buying some of the 170 RJs on order from Embraer and Bombardier, and has raised the idea in a meeting with GE, its regional jet financier. If another carrier is willing to buy the planes, operate them more cheaply and provide regional jet service for US Airways on a contract basis, "Why not let them do it?" Lauer said.
 
General Lee said:
Medflyer,

Didn't USAir just order $4.5 billion worth of RJs in Bankruptcy? How about Air Canada? They just had a huge order of EMB and CRJ aircraft? They, too, are in bankruptcy. Explain that please...We have over $3 billion in cash (after getting the $325 million closed yesterday in convertable bonds....). It looks like it doesn't really matter....


Bye Bye--General Lee;) :rolleyes:

Easy explanation, both USAirways and Air Canada have fiscally irresponsible and poor management which partly explains why they are in bankruptcy in the first place. Can DL take on the added debt? Sure they can. Would it be fiscally responsible to take on more debt when DL is already drowning? Probably not.

General, are you saying DL should try to emulate USAirways and Air Canada?
 
Medflyer,

Heck no. I am just saying that they could order some more RJs---they COULD. I don't think they should---and that is why I think they will get someone else to buy them and fly them for us. It would be nice if we got a deal (pay cuts from us) and we were able to compete more with new 100 seaters (hello lowecur), and maybe some more 70 seaters for DCI---but I am not in charge.

And, I was just ribbing you like you rib me---I have always got to have a counter point to you.....(this time I did bring up two good examples though.......)

Take care.

Bye Bye--General Lee;) :rolleyes:
 
MedFlyer said:
Of course, if DL is really smart they'll cancel the RFP altogether and save their money for something that actually improves the company.
Like designer FA uniforms?
 

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