One reason AAG wants scope relief...
10-15-2014 | 05:19 AM
#61
"Yinzer an'at"
Joined: Jun 2012
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From: Sittin at the puter
I agree, both sides will continue to negotiate.
As far as scope, their may be some lessening of the pressure on the company side. As oil / Jet Fuel prices decline the cost of operating the 50 declines also. When you consider that the effective lease rates on these aircraft are now about 1/3 of what they used to be, (see below) it makes them profitable on a few more routes.
Is the 50 seat Regional Jet Really so Bad with No Future ? | Aviation Doctor's Blog
With values of 50 seat regional jets now below $5.0 million and as low as $2m on the early CRJ-100’s and ERJ-135’s, lease rates are now $30k-45k per month for CRJ-100’s, $35k to $55k for CRJ-200’s and $40k to $55k for the ERJ-145’s, the ‘new’ economics of the aircraft is a little better than when lease rates were $150k to $190k per month and many airlines tied themselves to long term leases at the high lease rates. The difference in the lower lease rates of up to $1.2 million a year can compensates for a lot of fuel and maintenance costs, in fact based on 2,400 flight hours a year that is a lease cost saving of $500 per block hour, so there is life in the RJ aircraft, if it is below the 40,000 cycles for instance on the CRJ’s, and you have long sectors with good yields.
Kirby addressed this in a Quarterly Conference call with industry analysts in 2012. Lower fuel prices may mean that Parker and Kirby don't dig in over scope as much as they might otherwise.
As far as scope, their may be some lessening of the pressure on the company side. As oil / Jet Fuel prices decline the cost of operating the 50 declines also. When you consider that the effective lease rates on these aircraft are now about 1/3 of what they used to be, (see below) it makes them profitable on a few more routes.
Is the 50 seat Regional Jet Really so Bad with No Future ? | Aviation Doctor's Blog
With values of 50 seat regional jets now below $5.0 million and as low as $2m on the early CRJ-100’s and ERJ-135’s, lease rates are now $30k-45k per month for CRJ-100’s, $35k to $55k for CRJ-200’s and $40k to $55k for the ERJ-145’s, the ‘new’ economics of the aircraft is a little better than when lease rates were $150k to $190k per month and many airlines tied themselves to long term leases at the high lease rates. The difference in the lower lease rates of up to $1.2 million a year can compensates for a lot of fuel and maintenance costs, in fact based on 2,400 flight hours a year that is a lease cost saving of $500 per block hour, so there is life in the RJ aircraft, if it is below the 40,000 cycles for instance on the CRJ’s, and you have long sectors with good yields.
Kirby addressed this in a Quarterly Conference call with industry analysts in 2012. Lower fuel prices may mean that Parker and Kirby don't dig in over scope as much as they might otherwise.
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