Old 04-06-2020 | 08:10 AM
  #133  
TFAYD
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Originally Posted by Itsajob
Here is what was said..... A question was asked by an employee from IAD airport ops saying that Delta is retiring their 756 fleet. It was asked if United is considering retiring the most inefficient airplanes and if we return as a smaller airline, what will that look like. Scott Kirby then talks for a while about wanting to maintain flexibility since the outcome is unknown. If the demand rapidly recovers, United will be able to rapidly recover with it. He then talks about slow recovery. He said that if demand remains depressed with a 30% reduction for a long term, the 756 fleet would be the first to go, followed by the Airbus. The eventual Max deliveries would be replacements rather than planned growth. He then said that hopefully things won’t be worst case and that they keep the Airbus and use the max for growth as originally planned. He then says that on the regional side, “my guess is that the 50 seaters will be mostly gone by the end of this. Under almost any of these scenarios 50 seat flying will be a thing of the past”. Oscar Munoz then says “there are probably some smiles around virtual land right now with that statement.” At this point they go to the next question.

Saying that in almost any recovery scenario that 50 seat flying will be a thing of the past is hard to take out of context. There has been a couple of news articles mentioning the elimination of 50 seat flying when reporting on the content of the town hall, and the company has yet to come out and correct them saying that the statement was taken out of context. It appears to me that 50 seat flying is going to be a thing of the past when we recover from this.
another important “factoid” is that the company filed a 8-K with rage SEC saying that it expects demand to be down by 30% at the end of the year.

it seems to me that 30% is the base case and not worst case any more.
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