Originally Posted by
forgot to bid
So what does this do to Bombardier C-Series program as well as Embraer's E190 program to have Delta come out and say basically we're not ordering anything new for years?
I also guess no B777s or 748s? Or more 737s?
I think this kind of points to the 717 more than it does getting the E190 or small C-Series over at DCI. It'd be super clear if we just ever heard the words "we will not have any increase in the size of DCI jets or fleets." It really makes you scratch your head not to see that articulated more clearly because anything less is to say we'll use it as a bargaining chip.
I also don't quite understand why we would sublease aircraft from someone who was leasing it? Why have Delta pilots fly Skywest airplanes. Money has to come from DAL to pay Skywest to pay those leases. I guess I just don't get how that scheme would be advantageous over subleasing them from Wells Fargo or whomever it is directly. Not to mention we're saying we're going to buy 100 739s in cash if I'm not mistaken.
SKW gets the best rates possible for their purchases, and the payment becomes an operating expense for DAL, not a debt payment. Moving that debt off of DAL debt ledger is by far the biggest savings they get in terms of total debt service whether it is rationalized on our balance sheet or not. Less Debt on our ledger is good for DAL even if they are paying more in the form of cash flow payments for the operational expense of having the debt held outside of the corporation known as Delta Air Lines, Inc.