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Old 07-07-2017 | 06:24 PM
  #7926  
ColdWhiskey
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Indigo is a private equity investment company. They are interested in making themselves and their investors the most money they can, whichever method achieves that.

The method they are currently using is by taking delivery of new aircraft that were bought on the cheap back during the downturn, and selling them to a leasing company at a much higher price. With each new aircraft they take delivery of, they are pocketing several million dollars (the difference between what they paid and the price they sold it to the leasing company).

As leases on current aircraft expire, they are returning them. The net result is little or no growth. The current fleet size is flat and has been for years. We are being lied to. There is no growth in fleet size. Look at the numbers. Yes, the pilot numbers are higher, but that is because of the increased utilization.

Growth is a long term investment. It costs money. It removes money from Indigo's pockets in the short term.

Frontier is a money making machine at it's current size with the current business model. It's my belief that Indigo will bleed as much out of Frontier as they can while still maintaining it's value for a future sale.

But what is good for Indigo and their investors is not necessarily what is best for Frontier the company, or you and I, the pilots.
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