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Originally Posted by rickair7777
(Post 3011280)
They are funded for startup activities for at least 1-3 years before ANY revenue. They have to be planning for additional years of not breaking even because that's typical for startups.
Obviously they'll be hosed if this drags on for many years but so will everyone else. Jetblue didn't really grow up in a great environment either. |
Originally Posted by sailingfun
(Post 3011282)
Neeleman said he was starting this year.
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Originally Posted by ChopperHopper
(Post 3011307)
My point is that these guys know what they're doing. This was said pre-COVID-19, I'm sure those plans have changed by now.
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Anything new here, folks? Been quiet.
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He's going to be in a great position to buy some earlier delivery slots or options, and even get better terms on some of the leases they were getting ready to finalize. Everything from Jets to Aviation ground equipment will be available for short money. Probably will be able to pick up slots and gates at places they weren't previously considering too.
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Originally Posted by Cujo665
(Post 3052297)
He's going to be in a great position to buy some earlier delivery slots or options, and even get better terms on some of the leases they were getting ready to finalize. Everything from Jets to Aviation ground equipment will be available for short money. Probably will be able to pick up slots and gates at places they weren't previously considering too.
it’s an ill wind that blows no good and this one is actually blowing in Breeze’s favor. |
Originally Posted by Excargodog
(Post 3052332)
Absolutely. Startup costs for them have now been LOWERED. They have no legacy costs and will be flying the least expensive equipment with the least senior crews at a time of exceptionally low fuel costs, no shortage of gates, maintenance personnel, etc. and most of their competition will have been hamstrung by training costs and nothing but pilots at the top of the payscale.
it’s an ill wind that blows no good and this one is actually blowing in Breeze’s favor. |
Originally Posted by BobbyLeeSwagger
(Post 3052345)
Pun intended?
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Originally Posted by Excargodog
(Post 3052332)
Absolutely. Startup costs for them have now been LOWERED. They have no legacy costs and will be flying the least expensive equipment with the least senior crews at a time of exceptionally low fuel costs, no shortage of gates, maintenance personnel, etc. and most of their competition will have been hamstrung by training costs and nothing but pilots at the top of the payscale.
it’s an ill wind that blows no good and this one is actually blowing in Breeze’s favor. |
Originally Posted by Notarealpilot
(Post 3052459)
Why do you think this won’t cause Frontier and Spirit to blow up and take over market share for the exact same reasons above? Other than a few differences I think they have a way better shot at taking advantage of this situation. I’m biased because I work for one but my money’s on the current ULCCs.
If we revert to a third-world economy, with legacies liquidated, maybe business travelers and upper-middle class will have no choice but to fly ULCCs. But if things return to mostly normal, people will fly the same airlines they've always flown. |
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