metrodriver
No jobs anymore in here??
- Joined
- Aug 25, 2002
- Posts
- 492
Canadfly: both are in bk
the tekst in the contract prevents Gemini from setting up a subsidiary with a lot lower crew cost and transferring planes there, Mesa-Fredoom Air, Centurion-Cielos del peru, Arrow-Arrow Panama.
Nothing prevents Gemini from selling or dry leasing the planes (DC10) to anybody who wants them.
Does this make sense? Maybe ,maybe not.
One thing is for sure, if the DC10 part of the house will cease to exist, the operational (overhead) cost of the MD11 side will go up. There is quite a managerial (required by FAA) and support staff needed to operate 4 MD11's that is also needed for the 10 fleet. D/O, CP, Dir of Training, Dir of safety, Dir of MX, crew scheduling, dispatch, HR, finance and so on. Some of these departments can lose a few rank and file employees, but a lot of these positions are mandatory and their cost would only be bourne by 4 MD11's, now by 11 planes. Maybe better to keep the -10's flying.
However, if you can't compete any longer against low(er) cost operations like Cielos or customers don't want to pay the fuel bill any longer maybe it's time to change the business model. Best solution would be to get more MD11's (if Fed X wouldn't get them first) or buy brandnew planes for which there is a demand (777, even some start-up carrier in India bought a bunch over the weekend, 747 market is getting saturated, Cathay is not going to do some conversions that it planned a year ago if that's an indication), and then lease out the -10's.
We'll see
the tekst in the contract prevents Gemini from setting up a subsidiary with a lot lower crew cost and transferring planes there, Mesa-Fredoom Air, Centurion-Cielos del peru, Arrow-Arrow Panama.
Nothing prevents Gemini from selling or dry leasing the planes (DC10) to anybody who wants them.
Does this make sense? Maybe ,maybe not.
One thing is for sure, if the DC10 part of the house will cease to exist, the operational (overhead) cost of the MD11 side will go up. There is quite a managerial (required by FAA) and support staff needed to operate 4 MD11's that is also needed for the 10 fleet. D/O, CP, Dir of Training, Dir of safety, Dir of MX, crew scheduling, dispatch, HR, finance and so on. Some of these departments can lose a few rank and file employees, but a lot of these positions are mandatory and their cost would only be bourne by 4 MD11's, now by 11 planes. Maybe better to keep the -10's flying.
However, if you can't compete any longer against low(er) cost operations like Cielos or customers don't want to pay the fuel bill any longer maybe it's time to change the business model. Best solution would be to get more MD11's (if Fed X wouldn't get them first) or buy brandnew planes for which there is a demand (777, even some start-up carrier in India bought a bunch over the weekend, 747 market is getting saturated, Cathay is not going to do some conversions that it planned a year ago if that's an indication), and then lease out the -10's.
We'll see
