Originally Posted by
Nevets
I know that with the new CPA with CAL at the rates XJT was forced to accept due to attempted SKW buyout, it is at a loss at current aircraft utilization, it is at a loss.
The way that deal was explained to me is that the new CAL CPA was a completely different payment model than what XJT was used to. Before it was a cost+10% payment plan which is now a flat hourly rate. The reason it was unprofitable is that the flat hourly rate doesn't make money if CAL gives us low block hours. With the recession CAL cut us back about as far as they could possibly go without getting rid of airframes. So in the end XJT paid the leases but didn't get much money from CAL as they flew the airplanes relatively little.
Now that UA is thrown into the mix the block hours of the entire fleet will bring them into profitability. Hypothetically, if things go the other way and the planes are pushed to their limits then XJT's profits would be at it's peak.