Originally Posted by
gloopy
But even those floors can be reduced as much as we want. All most of them require if we do so from what I've seen is that we take over the leases. Leases we are paying for 100% anyway. Leases our credit is responsibile for either way. Debt that we are on the hook 100% for no matter how its shuffled.
If the company wants to fool the morons on Wall Street into thinking long term debt is really magically debt free, good for them. But our list needs to be doing that flying.
At the very, very least, RA should appologise for the terrible management of the past and agree right now to take outsourced RJ's down to the floor. 76 seaters need to go away on DOS of C2K12 by pulling seats if they have to. 51-70 seaters need an agressive phase out over the next couple years and 50 seaters limited to their currently falling numbers.
Other than the nebulous issue of ATL gates with the soon to expire CPA WRT the SKYW purchase of ASA, we can go well below the CPA's if we want to with very little penalty relatively speaking. Maybe its not viabile to instantly park all outsourced RJ's, but the company can easilly afford to eat quite a few mothballed large RJ's and if they can't then we can fly them.
You and I agree that we need to rewrite much of section 1 in the coming section 6. I would like to see these agreements have a sunset clause.
As for the contracts, what you state is conjecture. All of that is in the NDA portion of those agreements and therefore is not available for public consumption. That gets in to the trade secret potion of the deal and if you have seen it, I would be floor if you would be writing about it on here. That said, I would assume that there is more than just a penalty of taking over the lease payments. We probably have to cover the other fixed costs as well.
As for the growth in the RJ number, I was present for one of these presentations. Yes, it is sickening that they are still taking delivery of RJ's, but they are quite close to the max cap of 255 70+ seat RJ's. When the compliance committee reports again, I would be curious to see the new delivery numbers. No great, but we agreed to it, and overwhelmingly. Until this group votes no for anything that is short of what you state, we will always see allowable RJ's.