Originally Posted by
Planedrive
Indigo isn’t dumping anything. They’re making $15 million in profit on each sale-leaseback, with 180 aircraft still on order. That’s $2.7 billion in pure profit just from fleet transactions. All they have to do is ride out the current domestic oversupply, and they’ll be back to printing money.
An industry standard contract would wreck that profit margin. Not only would the contract itself chew up their sale-leaseback profit, they would have to change the way the airline operates to pay for the contract. Frontier was designed to just barely function well enough to pay those leases and not get shut down by the feds.
The way they are printing money right now gives them flexibility to bail. A new industry contract hand cuffs them to the airline. It would require a new CEO, new management and a new vision without the ability to predict profits out into the future the way they can now.