Originally Posted by
satchip
Doesn't the rise in oil prices make the case for a new fuel efficient 100 seater more than not? If the fuel burn is less or equal to a 70/76 seater at more capacity does that not reduce CASM?
As fuel costs rise the problem with the 76 seat jet is that it was designed for 86/88 seats. I know the company like the two class option for their precious metals, but money talks. The majority of these "premium" seats are redemption awards and not revenue. That means that we will have continued pressure to allow those aircraft to fly at max certificated. Some will disagree, but as we see continued pressure on the bottom line, eking out a few more dollars in revenue will be preferred. It is just business.
As for the 100 seat jet. It does makes sense, but our company does not want to commit the capital to acquiring these jets. Well, the jets that are currently available as an option. We do need a 100 seat jet, and we need to order it now. It is apparent that we can get short term leases on these airframes so that we do not hog tie ourselves and the next get arrives. It makes good business sense to do this now, and not get nailed when fuel goes north of 100a bbl again.
But as always I just fly em, I do not buy em.