Originally Posted by
PropPiedmont
I’m talking about risk and you are talking about profits. Anyway, how much of the discount on airframes added into the profits? Or is that not related?
If we had 2 fleets, we then have double the chance of a fleet grounding. A grounding that takes down half the fleet is no less crippling than a grounding that takes down the entire fleet. That is also a very low probability event. The added complexity however would be evident from day 1, with an absolute certain probability of occurring. So the added benefit of mitigating a low probability event does not outweigh the added cost/complexity to our model.