Originally Posted by
mudpie
Reads like you're making complete assumptions on everything just like I am.
Spirit loses $500K/month operating each airplane. Maybe with the PW planes back it'll just amount to even more loses. Maybe Spirit right sized the crews/operation to not really "lose" out much beyond the fixed lease cost and they'd lose even more if the PW planes are flying.
How do you know if the ongoing maintainence cost of operating thr plane is more than getting the plane back online? Especially if it's on PW to make sure the engines are ready to return to service.
Insurance? If I'm not using my boat for long periods I get a different rate than if I'm using it regularly. Probably the same.
You don't know jack and I don't know jack. Let's just leave it at that.
The lease rates have been confirmed via court cases (Frontier vs ACKM) and podcasts with the world’s leading leasing company this year on Airlines Confidential (forget the episode but Angus was the guest speaker). The insurance/maintenance problem was discussed by an Insurance broker on 121.5 podcast from March. The personnel costs have been easy to read that Spirit was way overstaffed (furlough) and easy to calculate since pilot pay is public. The reason it appears Spirit is losing 500k per month per airplane is because they are losing a ton per month on airplanes that aren’t flying through various drains. They are drags that mean the airplanes flying need to make even more revenue to make up the difference. Unfortunately the yields haven’t allowed that to happen. P&W wasn’t the beginning of the problems but it sure didn’t help.
I am Jack.