Mamma
Well-known member
- Joined
- Mar 29, 2005
- Posts
- 2,802
DH2WN said:This discussion is about B6 selling planes. Not United.
Bottom line......
DN sees a cash crunch coming and needs to sell off planes to improve the short term balance sheet. It's not good any way you cut it. The added costs of adding a second fleet type are biting him in the ass more than he thought. The marginal increase in revenue with the RJ are not outweighing the long term costs of having 2 fleet types. He knows it and is trying to correct his major f-up.
I have a lot of friends at B6 and I hope it's successful but selling off planes when you are a brand new company is not a good thing by any stretch of the imagination.
You B6 guys are spinning the facts that the company is starting to lose money and DN is now concerned with maturation costs starting to creep up.
You cannot turn back the clock by selling off old planes. Be very weary.
Wrong. The bottom line is about slowing expansion and cutting costs. Better to learn from mistakes and proceed smartly then hang onto a sinking ship somehow hoping the leak will magically fix itself. By the way, check out the markets. Stock being upgraded and institutions are happy that JB is addressing their problems and turning the ship around.