Originally Posted by
Excargodog
There are gonna be lots of barely flown and recently built NEOs freed up by the bankruptcies of European carriers. It wouldn’t surprise me if they could be picked up fairly cheaply. For that matter, interest rates are REALLY low. Ditching older CEOs on lease to get newer and more efficient NEOs might be a good thing. Even if you had to borrow money from the government and give them an equity interest in Spirit to do it. Your management damn sure ought to be shopping for discount parts in that market.
I agree. This outcome is very likely.
1. Whichever airline starts growing again before others (worldwide context) will find pretty sweet deals on brand new or barely used airframes
2. Oil prices will climb pretty fast as restarting production has a lag and several oil companies will go under. This will make NEOs even more attractive.
Bottom line is, as we downsize don’t completely freak out if you see the company returning airplanes to lessors. We’ll be able to pick up new airplanes quickly when demand picks up again.