MAX Return?
10-22-2020, 04:26 AM
#1
Gets Weekends Off
Thread Starter
Joined APC: May 2005
Position: FDX MD11 Capt in MEM
Posts: 885
MAX Return?
I’m surprised that there has been no discussion of this:
https://www.reuters.com/article/us-b...-idCAKBN27305O
Sent from my iPhone using Tapatalk
https://www.reuters.com/article/us-b...-idCAKBN27305O
Sent from my iPhone using Tapatalk
10-22-2020, 05:56 AM
#6
Gets Weekends Off
Joined APC: Feb 2007
Posts: 584
We must have the worst lawyers imaginable if they couldn't get out of the MAX order after all that's gone down.
Pretty sure we don't want to be buying new airplanes right now. Keeping old airplanes flying is why Delta has half our daily cash burn.
Pretty sure we don't want to be buying new airplanes right now. Keeping old airplanes flying is why Delta has half our daily cash burn.
10-22-2020, 07:24 AM
#7
Gets Weekends Off
Joined APC: Mar 2014
Posts: 3,093
Originally Posted by Andrew_VT
We must have the worst lawyers imaginable if they couldn't get out of the MAX order after all that's gone down.
Pretty sure we don't want to be buying new airplanes right now. Keeping old airplanes flying is why Delta has half our daily cash burn.
Pretty sure we don't want to be buying new airplanes right now. Keeping old airplanes flying is why Delta has half our daily cash burn.
This would be like buying a car and instead of putting $3000 down and paying $500/month for five years ($33k) you pay $400/month for 10 years ($48k) but walk away with your down payment of $3000 for a net $45k.
As a point of reference, when Spirit did the opposite, they realized savings of $1m per airplane per year. It's an expensive way to raise cash over the long term and just makes us less competitive, but we need the cash now first.
US Airways did this pre-9/11 to raise cash to buy back stock prior to the UAL merger.
10-26-2020, 09:59 AM
#8
Gets Weekends Off
Joined APC: Oct 2017
Posts: 534
Originally Posted by Name User
They have, in the recent past, turned the aircraft into cash flow positive, but only temporarily. They had initially bought those aircraft and financed them as purchases. But instead of that, they are now doing what's called "sale, leaseback" where they pay more over the long term in order to get a cash payment up front.
This would be like buying a car and instead of putting $3000 down and paying $500/month for five years ($33k) you pay $400/month for 10 years ($48k) but walk away with your down payment of $3000 for a net $45k.
As a point of reference, when Spirit did the opposite, they realized savings of $1m per airplane per year. It's an expensive way to raise cash over the long term and just makes us less competitive, but we need the cash now first.
US Airways did this pre-9/11 to raise cash to buy back stock prior to the UAL merger.
This would be like buying a car and instead of putting $3000 down and paying $500/month for five years ($33k) you pay $400/month for 10 years ($48k) but walk away with your down payment of $3000 for a net $45k.
As a point of reference, when Spirit did the opposite, they realized savings of $1m per airplane per year. It's an expensive way to raise cash over the long term and just makes us less competitive, but we need the cash now first.
US Airways did this pre-9/11 to raise cash to buy back stock prior to the UAL merger.
Thread
Thread Starter
Forum
Replies
Last Post
