Originally Posted by
RJDio
I would say patience is in order. The 50 seater has its days numbered. The company doesn’t like it ( they’ve said so publicly), the crj cycles out at 40k cycles ( many have already), and pax hate them.
The long threat is the jumbo rj. They are the threat to the NB operation when the next downturn hits. What do you (not you specifically) think will be easier to park? Used/old airbuses/guppies or new contractually obligated jumbo rj’s? We’ve seen the movie before.
IMO, the options on the table are buy a NSB and unlock more rj’s, keep the status quo (which will probably not play out well fiscally for anyone), or hold firm and bring on the 190/175e2 on property configured to its optimal configuration and start the reversal of outsourcing.
Would you rather be negotiating against an anxious management or a pacified one? The choke is working.
This is also what I see.
I’d say the option to buy a NSNB to unlock more 175s isn’t very likely. Delta did it, but they did it with a $500 million subsidy from the Canadian taxpayer. They have to contend paying delta pilots mainline pay rates, but they have a very low costs basis built in the aircraft thanks to Canada.
Bombardier said it would book a $500 million "onerous contract" charge in the second quarter related to the Delta order and a separate order from Air Canada in February.
https://www.reuters.com/article/us-delta-air-lines-bombardier-idUSKCN0XP19I