Originally Posted by
Bluewaffle
Forgive my ignorance but wouldn’t it make more sense for AW to purchase used 700s instead? Convert to 550s and have a piece of the future 50 seat pie. That seems like the only path forward in ORD at least.
What many people forget is how the regulatory conversion process for the 700 to a 550 works. It takes an STC. An STC can be simple, like installing a new antenna, or it can be quite complex, like installing a third engines on a CRJ. The more complex, the longer and more expensive the STC is to obtain.
in the case of the 700 conversion to 550 STC, I’m sure that falls on the complex side. Guess who owns that STC? That’s correct, Hulas does. Once you own an STC, it’s almost like owning a patent. If someone else, say AW, decides they would like to buy a 700 and convert it to a 550, they have two options: obtain their own STC (expensive and time-consuming), or, obtain a license from an existing STC holder.
My guess is the 550 is very much an option for AW longterm. But I’m also guessing Hulas isn’t playing ball or is asking too high a price for his STC. So, if I’m AW, in order to justify going after their own STC, I’d pursue a longer-term contract with UAL for 550s, then use that new contract to justify the expense of getting their own STC.
In the meantime, I’d look for other opportunities (like freight, Mesa AA 900 flying, etc) to diversify revenue streams.
Of perhaps none of the above…who knows???