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Old 05-25-2012 | 05:40 AM
  #101250  
CAAC ATP
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Joined: Dec 2011
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To start, my biggest hang up with this TA is scope. I have a few questions that may be unanswerable.

1. What's the hurry? I can't imagine that there is some kind of uber secret plan in the works that requires an immediate signing of the TA. Time is a very strong negotiating tool and it appears that we are allowing this to be used against us rather than in our favor.

2. Why 717? From the rumors this deal as been in the making for a long time. I am certain the official announcement was strategically timed to come out when it did. Plus, we're looking at 88 jets that are more than likely replacement aircraft. This isn't a fleet that lends much potential in organic growth. 88 jets isn't an effective replacement or addition and the only real way to gain any more is through a merger. We can't simply order more from Boeing.

3. Why 76 seat jets? Economically they are better than the 50 seat jet. They're better, but they aren't good. I don't think anyone would ever try to start a stand alone airline with a 76 seat jet. I don't know the exact metrics, but would imagine Delta is basically subsidizing these aircraft and reducing their losses by pitching the regionals against each other.

4. Why not a new 100 seat jet? If we really need a magical 100 seat jet, why don't we work a deal for the C series that relieves us of the 50 seat lease burdens?

There are always other options and I don't see why we have to concede scope. Some may look at Section 1 and say it is better, but we're still giving away jobs. Something about this TA just doesn't sit right with me.