On Your Six
Well-known member
- Joined
- Mar 8, 2004
- Posts
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Right sizing planes to routes? Maybe 100 seats is perfect for the Shuttle?
Bye Bye--General Lee
All right General...you could snag some 717's, put in a single-class setup and run those on the shuttle and put the rest, in a two-class setup, and dump the DC-9's.
Fornaro has made it very clear that returning to profitability and fixing the balance sheet are higher priorities than growth right now. While the company and the analysts are predicting profitability for 2009, it will take a while to get the $600-800 million cash on hand for Fornaro to feel comfortable enough to crank up the growth plan again. Latest ASM projection from management for 2009 is down 3-7% from 2008 levels.Why couldn't Air Tran just buy the aircraft in the desert if it wanted to grow too? Is it purely financial (can't afford to add airplanes)?
Fornaro has made it very clear that returning to profitability and fixing the balance sheet are higher priorities than growth right now. While the company and the analysts are predicting profitability for 2009, it will take a while to get the $600-800 million cash on hand for Fornaro to feel comfortable enough to crank up the growth plan again. Latest ASM projection from management for 2009 is down 3-7% from 2008 levels.
Now if the right deal was available to acquire some 717s and we could sell some more 737s, we would probably do that to increase our cash on hand by monetizing the value of our 737s. The company is happy with the performance with either airplane according to the last earnings conference call. Obviously the 737 has more alot more demand in the worldwide aircraft market.
I believe that the Midex 717's are still configured for only 88 seats. If thats the case then the transition to the E170 would make financial 'cents' for the mismanaged airline.