Originally Posted by
ShyGuy
All I see is 32 MAX9s on order yet to be delivered. I can’t find options anywhere, but it would take 40 options to be fully exercised just to replace the 73 Airbuses on an airframe.
If the “new” order is 40, then that means 32+40 = 72 firm just replaces the Bus fleet. Until options are exercised, they seem meaningless.
From the original 50 Boeing order press release:
“Alaska Airlines currently operates 120 Boeing 737s. The new firm aircraft order, plus 25 existing firm delivery positions, give the carrier the flexibility to manage its fleet size to meet air travel demand over the next decade. Two-thirds of the aircraft are expected to replace older airplanes. The remaining firm orders and options will enable Alaska Airlines to grow assuming sufficient customer demand and that the company continues to achieve its profit and return on invested capital goals.”
2/3 were for replacement of older Boeing’s. Only 1/3 of those 50 were growth.
Options are meaningless? Huh?
Options are positions paid for by Alaska, we wouldn’t purchase them if there was no intent, we are way to frugal for that. Options allow AS management to release a smaller future liability to Wall Street, which they are much more likely to palate. To date every Alaska 737 option has been exercised. Past two orders only saw additional options being exercised.
On the date of the acquisition, AS had almost exactly the same number of 737 firm orders and positions as VX had total airframes. This has been answered several times, to include myself last summer on this board. 59 737-9 replace all the Bus capacity, a number we don’t like but management does.