Originally Posted by
David Puddy
Point is, both the E2 and A220 have shallow order backlogs for now (both JB and Moxy see the value) and claim to offer 25% improved efficiency. No doubt Spirit management has to weigh “single fleet efficiency” vs the availability of more fuel efficient types that require a switching cost/complexity. There are trade-offs to consider. If a certain revenue growth rate must be achieved going forward for the stock valuation, fleet decisions will need to be made. Currently the E2 has few orders (significant availability) and the A220 is still reasonably available - although it is gaining more and more orders (which is good for training and maintenance costs/availability).
I agree, there is always going to be a break even point in there somewhere when it makes sense to have multiple fleet types. Rumor is that Boeing is pushing pretty hard for us to switch over as they don’t have a foothold in the US ULCC market and want to get in before it’s too late and the major players have matured too much. Either way I’d welcome any new growth at this point.
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