Originally Posted by Brav989
Part of my brain still isn't understanding. So these 69 jets were used by Xjet, is that right? They decided to keep them, but pay more $, is that right? Well if they were already using them to begin with, why would there be a problem? Because of higher overhead with having to pay more to lease them?
Yes, they pay more for the lease, but that is a minor issue.
The big issue is that they have 69 planes that are operating on CAL Expess routes which means CAL pays XJet for the service which is where XJet gets the revenue! In 2007 those planes will NOT be able to operate as CAL Express, will NOT be painted with CAL colors, and will NOT earn any money!
The cost of paying lease, mx, and crew costs on 69 planes that are not in use would bankrupt any airline in a matter of weeks or even days. XJet needs to find someone to pay for the service provided by those airplanes, and they have not announced who that is yet (if they even know).