Originally Posted by
TurbineTime
You're letting your desire to get your hands on republic planes out way the facts. Obviously rah has loans on aircraft, they make payments on them all the time. But not on the delta planes you continue to talk about. They are already paid for and have been for some time. If American and United stopped paying, I agree it could get dicey. But they haven't and BB is using this to shed the 145's like he's wanted to all along.
Sent from my iPad using Tapatalk
Regionals base their contracts based on income cost spread. When they do this their income is based on complete asset portfolio income. This is how they can bid so low. They don't look at the united planes and say ok those planes we are still making payments on will produce this and base their bid off of that. They also include the planes that are completely paid off as well. That way they can bid less and have a better chance of getting the contract. (In not sure I'm explaining this well) what this means is that if they cannot utilize ALL of their planes minus reserve metal (whatever optimization rate they go for) for income they will struggle to make payments on the planes they owe on. It doesn't matter who stops paying (aa, ua, or da) if any of them stop republics in trouble.