nwa 70 seaters

[YourPilotFriend]

NWA holdings makes money off of leasing aircraft, not operating them. They want to start up a new subsidary to do the same thing, and shed the debt of a fleet upgrade from the parent. Hiring a company like Mesa, completely defeats the purpose of NWA's business plan. NWA is basically outsourcing it's entire DC-9 fleet to a regional carrier that it totally controls. (9E/XJ)

 

[kngarthur]

NWA holdings makes money off of leasing aircraft, not operating them. They want to start up a new subsidary to do the same thing, and shed the debt of a fleet upgrade from the parent. Hiring a company like Mesa, completely defeats the purpose of NWA's business plan. NWA is basically outsourcing it's entire DC-9 fleet to a regional carrier that it totally controls. (9E/XJ)

I thought that they were RESTRUCTURING their business plan.

 

[DoinTime]

NWA holdings makes money off of leasing aircraft, not operating them.

To say NWAC makes money off of subleasing aircraft is not quiet accurate. THEY MAKE A CRAPLOAD OF MONEY OFF OF SUBLEASING.

Pinnacle's CRJ fleet is owned by Wells Fargo who in turn leases them to NWAC for about $85-90 thousand per month each. This is about the current market lease rate for a CRJ. NWAC turns around and subleases these same aircraft to Pinnacle for about $185 thousand per month. This yields approximately $14,000,000/month in gross profits for NWAC for the subleasing of PCL's fleet alone with almost no overhead.

The dirtiest part of the deal is that NW dictates all of the operations for PCL and they dictated that we park 15 CRJ's recently. But just because we had to park these aircraft doesn't mean we don't have to pay the overly inflated lease rates. So now PCL is paying almost $2.8 million per month to lease aircraft that we are not allowed to use.

This exemplifies the type of control that NWAC exerts over its affiliate carriers. I would doubt that NW gets to many other regional carriers even will to put in a bid for their flying.