Midwest getting new aircrafts????

[GOULET!]

If we're having a "Get the Hell out of the Industry" party for Uncle Timmy, let me know. I'll arrange a tour bus full of ex-Skyway'ers and bring lots of party favors for decorating the front lawn.

GOULET can drive the bus.

 

[deadstick]

one thing that does come to mind is from the movie billy madison, a paper bag on fire full of dog Sh** on his door step!

GOULET can drive the bus.

and I'll bring the paper bags!

"Them ain't chocolate chips in there, Timmy!"

 

[NuGuy]

Heyas,

As much as it pains me to point this out, both DAL and NWA have a vested interest to see Midwest hold their own in MKE.

NWA to block mid-west expansion, and DAL to, well, just poke Tranny where they can.

Nu

 

[PCL_128]

Or are you just responding to the posts of CitationLover, who everyone here knows should just keep his rediculous mouth shut.

Bingo! The ignorance that comes from that guy's mouth is really without compare. While his profile lists his current position as "furloughee," he tries to talk of AirTran's "desperation." Maybe he should open his eyes.

I wish the best to all MEH pilots. I still wish our merger would have gone through last year. We all would have been much better off. But CitationLover needs to cool off and take a dose of reality.

 

[Ualexpress]

We have also been hearing that Airtran is loosing a lot of money on their new expansion routs from Milwaukee and it didn't turn out like they planned and they will be scaling back on all the loosing routes.

Did you Airtran guys hear anything?

What is a loosing route?

 

[maxblast72]

how much is a 737-7 if not $60m? this seems to think my figure was reasonable.
http://www.boeing.com/commercial/prices/

We purchased our airplanes in 2003 prices, not 2008 prices. I believe our 737's are coming to us at a price in the $35-40 million range, and the ones we are selling are in the low 40's range (thus a nice $3-5 million profit per airplane). I think the two airplane we sold in 2007 netted a $7.2 million profit after taxes.

 

[maxblast72]

whats a lease payment on an 80 to a brand new 737? how about hull insurance on a $4 million dollar airplane versus a $60 million dollar one? last i checked allegiant was doing quite well on the 80.

Aircraft rent and insurance are only about 10% of our CASM while fuel is 50% of our CASM. I will give you at least a 60% advantage is aircraft rent and insurance. I would rather have a 30% advantage on 50% of my costs than a 60% advantage on 10% of my costs.

At low fuel prices, cheaper to own/operate gas guzzlers make sense. At higher fuel prices, more expensive to own/operate fuel conservative airplanes make sense.

Allegiant is a totally different business model. They don't fly into any markets with direct competition. As an example, the day Airtran started their Newburgh-Orlando Service was the last day that Allegiant flew the route. They new they couldn't compete with us (and later Jetblue who also entered the market).

 

[maxblast72]

for simple comparison purposes.

just looking at MKE-LGA for a fare for 7/3 and returning 7/6.
AAI $178 (web special), $368.50 (adv coach)
MEH $333.


now MKE-BOS:
AAI $266
MEH $274.

now MKE-DCA:
AAI $222.50 (web special), $297.50 (adv coach)
MEH $424

It looks like we should be profitable in MKE if these fares are typical of MKE.

In the first quarter 2008, our average fare was $100 and our break even average fare was $106. Now granted our break even average fare is higher now due to higher fuel prices. I guess we will see how things are going system wide in about 6 weeks with the 2nd quarter results.

I still don't know how your managements know how many seats we sell at $79, how many seats we sell at $179, and how many seats we sell at $339. They may be able to see all the different price catergories offered online, but have no way of knowing how many we are selling at each prices and what our overall average fare is for each route. They have no way of knowing how many last minutes upgrades were purchased for $70 or $90.

And I doubt they are going to break out the MKE results when releasing the 2nd quarter numbers other than to maybe say to the analysts asking questions how MKE is performing overall.

 

[CitationLover]

Bingo! The ignorance that comes from that guy's mouth is really without compare. While his profile lists his current position as "furloughee," he tries to talk of AirTran's "desperation." Maybe he should open his eyes.

Is your company trying to see fit that I will never return to a job in MKE? I think I am justified in my criticisms to the "AAI is god" crowd. And where is my "ignorance" oh wise $40 oil soothsayer? Will you next lecture me about how pensions work?

As far as 2003 737 prices, I guess a/c inflation has been 50% in 5 years. But I guess I will believe maxblasts "guess". What return could AAI have made taking those 2003 dollars and investing it and pulling out in 2008? How about 50% spread over the 5 years using the S&P 500. That's more than they made under their "deal". Pretty poor decision to sell airplanes from an economic standpoint I would say.

 

[CitationLover]

Aircraft rent and insurance are only about 10% of our CASM while fuel is 50% of our CASM. I will give you at least a 60% advantage is aircraft rent and insurance. I would rather have a 30% advantage on 50% of my costs than a 60% advantage on 10% of my costs.

At low fuel prices, cheaper to own/operate gas guzzlers make sense. At higher fuel prices, more expensive to own/operate fuel conservative airplanes make sense.

Allegiant is a totally different business model. They don't fly into any markets with direct competition. As an example, the day Airtran started their Newburgh-Orlando Service was the last day that Allegiant flew the route. They new they couldn't compete with us (and later Jetblue who also entered the market).

The bulk fuel arrangement MEH has with NWA (and now potentially DAL) means our fuel costs are lower potentially than yours. Our insurance costs were cheaper immediately after the NWA deal. I can name other initiatives under way, but I am sure TH will f@#$ those up too.

Again BOTH airlines are tanking here, but it's always a pissing contest for you trannies. I guess the flat growth rate as a MAXIMUM isn't a worrying sign for AAI or to you.

http://www.aviationweek.com/aw/gene...l&headline=Aircraft Deferral To Limit AirTran

....we are reducing planned growth for September, 2008, through at least 2009 from 10% to no more than flat.