Originally Posted by
RockyBoy
The about face on the small narrowbody RFP leads me to beleive that we may be looking at a consolodation scenario where we end up with some small narrowbody airframes. LCC and B6 both have 190's so maybe there is something going on behind the scenes with that. That being said, the volume and bounce in stock prices today were due to the pullback in capacity plans for 2012 even though they don't anticipate a drop in demand. That and look at the operating margins for the summer even with high fuel prices....that is some good stuff there.
That is not what it tells me. First, I think we are wanting to de-risk our business by deleveraging it and paying down debt. Second, the order is getting pushed off until we are in negotiations. ALPA, by refusing to state clearly that scope is not for sale is sending a message, in turn, management is keeping its options open. They are not going to commit when the open question remains.
Delta management stated they had been in talks with Bombardier and Embraer. Those manufacturers sell types that are operated by our regional partners. Further, the RJ's guys all stated their companies had been asked to submit proposals on operating these jets.
Also note D-ALPA was at the conference and recognized right off the bat. What ever is going on, D-ALPA is in the loop. They stated unequivocally that there were no 100 seat negotiations, or proposals.
As far as buying low cost carriers, we just bought part of Aero Mexico and are working on GOL. It was stated we are getting a Joint Venture going and full anti trust immunity in the future. When it comes to cabotage, maybe we are a first mover. That's where I'd be focused ... more than parts of LCC.
FWIW, AeroMexico Connect has a fleet of E190's on order with 99 seats in a two class config.