Originally Posted by
404yxl
I'm just curious if those that think like this person, really understand how those payments on those planes work and what is needed to make sure your payments on "owned" planes don't default.
Customers pay money to their mainline provider and the mainline provider provides payments to their contracted partner to cover their costs associated with their contracted lift. Sometimes those costs involve the airplane costs. Sometimes the mainline partner bears the cost. If contracted partner fails to live up to their contractual obligations, the mainline partner may cancel their contract (CPA) with their contractor.
Now riddle me this. If Republic's mainline partners withhold payments to Republic for failing to meet the terms of their CPA, how exactly will RAH make the payments on those planes.
To put it another way. You may own that car or home of yours, but if you owe on a loan, do you think you aren't at risk of it being repossessed or foreclosed on? Or do you just keep to keep your car or house forever if you decide to never make the payments?
This is getting a little tiresome, but I'll say it again. The aircraft referenced in the post you quoted are some of the oldest in the republic fleet, they are paid off and have been for some time. If the CPA w/ delta is cancelled, they will be reallocated throughout the rest of the fleet to cover other flying. Again, there are no payments on those aircraft and they can be used elsewhere. They will not be going anywhere but the paintshop to get their new United colors.
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