ExpressJet-Is my logic flawed?

[antix12]

I was recently thinking about the success of ExpressJet branded flying and being that outside of aviation another one of my interests is economics and finances I came up with some interesting numbers.

If the current Continental flying ExpressJet does now is done with a 10% profit margin 205 planes will bring in cost of that flying plus enough profit to cover the cost of 20.5 planes that are making absolutely no money at all. Then you take the 10 planes that are doing Delta flying for a profit that number increases. Also we have the 15 planes that will be doing charter at even a greater profit margin than the Continental express flying. Not counting the Delta profits since that information is not public the Charter flying would bring in at least enough profit to operate 1 more and possibly 2 more planes making no money at all.

That being said it seems like 22.5 or lets go with 23 planes counting the Delta profits could be operated on the branded side with no revenue whatsoever and the company would break even. Eventually the company will be operating 44 planes as ExpressJet airlines. Removing the 23 from that number only 21 planes would have to operate and make money to break even it seems.

I just came up with these numbers in a few seconds in my head and there could be flaws in my logic, but it seems pretty interesting to me? Anyone else have any thoughts on this?

 

[Ponchus pilot]

I dont think it works like that. Only time will tell.

 

[antix12]

Yeah it doesn't exactly work like that with the overhead of all of the money spent to get the new operation running with new bases, advertising, and training new employees in various different jobs etc, etc. Also I didn't take into account any of the side businesses ExpressJet owns that create profit outside of the airplanes which would help offset some of that.

 

[dogtown]

I was recently thinking about the success of ExpressJet branded flying and being that outside of aviation another one of my interests is economics and finances I came up with some interesting numbers.

If the current Continental flying ExpressJet does now is done with a 10% profit margin 205 planes will bring in cost of that flying plus enough profit to cover the cost of 20.5 planes that are making absolutely no money at all. Then you take the 10 planes that are doing Delta flying for a profit that number increases. Also we have the 15 planes that will be doing charter at even a greater profit margin than the Continental express flying. Not counting the Delta profits since that information is not public the Charter flying would bring in at least enough profit to operate 1 more and possibly 2 more planes making no money at all.

That being said it seems like 22.5 or lets go with 23 planes counting the Delta profits could be operated on the branded side with no revenue whatsoever and the company would break even. Eventually the company will be operating 44 planes as ExpressJet airlines. Removing the 23 from that number only 21 planes would have to operate and make money to break even it seems.

I just came up with these numbers in a few seconds in my head and there could be flaws in my logic, but it seems pretty interesting to me? Anyone else have any thoughts on this?

Lets assume everything you wrote is correct. The reality is that XJT is in business to make money, not operate aircraft. Those ac will have to make money (I'm not saying they can't) or go.