AirTran cuts growth

[Thunderchief]

can someone cut n paste the article? my phone won't go to the blog site...

Thanks

TC

 

[fmr727drvr]

More AirTran growth cuts coming in February

posted by Jason Garcia on Jan 31, 2008 11:17:34 AM Discuss This: Comments (0) | TrackBack (0) | Linking Blogs | Add to del.icio.us | Digg it
AirTran Airways President and Chief Executive Officer Bob Fornaro said this morning that the Orlando-based airline expects to pull back on its 2008 growth plans even further in the "next week or two" to help compensate for rising fuel prices.
Fast-growing AirTran has already cut its projected 2008 growth rate once before because of soaring fuel bills. But the airline's current target of 10 percent growth in 2009 "may be too high," Fornaro said in a presentation at the Raymond James Growth Airline Conference.
AirTran's plans currently call for it to add 10 new Boeing 737s this year. But Fornaro said that "we are talking to other carriers right now about aircraft," indicating that AirTran is negotiating to sell off some jets.
Fornaro said AirTran expects to reduce its 2009 and 2010 growth plans, as well.

 

[fam62c]

Any idea what the upgrade time and time on reserve for a new-hire in the next couple of months would be? Just looking at the number of planes and pilots that AAI currently has I would think upgrade will go to 8-10 years if deliveries slow or stop. I guess the good thing about AAI is that when things get better they will increase growth quickly. It seems the FO rates are somewhat low which is understandable with the traditionally fast upgrades, will a slowdown in growth increase FO attrition? Does anybody think that there's a chance the airline will actually downsize?

Thanks

 

[gt1900]

Fam... I would be suprised to see 8-10 year upgrades at AAI. Besides, this industry has a way of flip flopping overnight. If fuel drops overnight or if DAL merges with someone, you can bet AAI will be there to pick up the slack. I don't believe AAI is going to downsize at all either. The 10% growth in 2008 was the highest growth rate of any airline. AAI is just getting in line with everyone else. AAI can also sell 737's for more than they paid for them, selling them would actually make a profit for AAI. My guess is that upgrade is going to head towards 5 or 6 years. But then again, this is the airlines. Tomorrow is another day, and if the US heads into a recession, who knows. It going to be a double edged sword for the airlines. Fuel demand is going to go down so fuel prices will go down, yet pax traffic will decline as well.. Too bad fuel prices won't drop while passenger demand increases... We can always dream.

 

[On Your Six]

duplicate post*

bladeusa,

Please continue to create duplicate posts. I really DON'T MIND LOOKING AT YOUR AVATAR OVER AND OVER AND OVER AGAIN.... Please duplicate more posts!!!!!!!!!!!!!!

 

[Ticker]

No surprise...

Last month, Fornaro briefed us (new hire class) that the 10 new 737's for 08 looked like it was going to be more like 6. So, I would surmise the media is a little confused (surprise, surprise). They're selling or giving up "positions" on new jets, not selling planes on property.

Does that sound right?

 

[crxpilot]

I don't believe AAI is going to downsize at all either. The 10% growth in 2008 was the highest growth rate of any airline.

Ahem,,,,,..care to retract that statement?

"

At this time, Allegiant Travel Company provides the following guidance to investors, which are subject to revision:
-- We expect first quarter 2008 year-over-year departure growth of at least 42% and ASM growth of at least 35%. -- We expect second quarter 2008 year-over-year departure growth of at least 35% and ASM growth of at least 25%. -- We expect full year 2008 year-over-year departure growth of at least 35% and ASM growth of at least 30%."http://biz.yahoo.com/prnews/080129/latu186.html?.v=11

 

[humveedriver]

Most of what Joe and now Bob brief new hire, recurrent, and upgrade classes can be heard on the quarterly conference calls. The 4th Quarter call is available at airtran.com under investor relations. If you don't want to listen to all of it, listen to the questions and answers section. It's not scripted and the investor reps ask relevant questions. Bob recently spoke at a conference, and that's there as well. Like someone else said, all this changes in a second good or bad. To summarize some of the call; Oil was 11 dollars a barrel when Bob started with AirTran. Now it fluctuates around 90 dollars. The plan they are discussing is with oil at 90 dollars barrel and no carrier consolidations (mergers). Obviously if there is a reduction in capacity in our markets, or fuel becomes cheaper, growth will resume.

 

[Ticker]

Most of what Joe and now Bob brief new hire, recurrent, and upgrade classes can be heard on the quarterly conference calls. The 4th Quarter call is available at airtran.com under investor relations. If you don't want to listen to all of it, listen to the questions and answers section. It's not scripted and the investor reps ask relevant questions. Bob recently spoke at a conference, and that's there as well. Like someone else said, all this changes in a second good or bad. To summarize some of the call; Oil was 11 dollars a barrel when Bob started with AirTran. Now it fluctuates around 90 dollars. The plan they are discussing is with oil at 90 dollars barrel and no carrier consolidations (mergers). Obviously if there is a reduction in capacity in our markets, or fuel becomes cheaper, growth will resume.

Thanks Humvee...

I didn't know about those call-ins. I'll have to go find it. Our conference call (he couldn't make it in that day) was pretty informative. A lot of well thought out questions. His answers cleared a lot of things up that I'd been wondering. These guys have shown that they know how to weather a storm. We'll eventually get a contract both parties can live with. I'm sleeping well at night knowing it's a pretty safe bet they won't fly our airline into the ground. That's a good feeling.:beer:

 

[tubelcane]

In the conf. call they said we were getting 10 airplanes! Today they say were gonna sell some . WTF over, I had heard that was a rumor in groundschools, why not come clean with the ananlysts?