.............
.

 

We are using and retiring assets without replacing them. By definition ... liquidating those assets. The term "liquidation" was introduced to this discussion by a hedge fund manager who used the term to describe Delta's lack of capital investment in his review of our lease information included in the Company's 10K. I resisted the use of that term until re-reading the definition and deciding it fit, despite its provocative overtones.

The point being, is our "profit" real, or does it mostly reflect our lack of investment going forward?

 

Yes indeed.
We are leaving the market and shrinking and the low cost guys are moving right in.

Wall Street Journal

FEBRUARY 16, 2012, 3:11 P.M. ET
UPDATE: Spirit Airlines Sees Capacity Up 23% In 2012 Vs 2011

• --Florida-based carrier's expansion provides a particular challenge to AMR Corp

--Spirit plans to add seven planes this year, boosting its fleet to 44
--Notched up its fifth-straight year of profitability
(Updates with executive comment beginning the third paragraph. Updates share price.)

By Doug Cameron
Of DOW JONES NEWSWIRES

Spirit Airlines Inc. (SAVE) announced plans Thursday to accelerate its expansion, boosting capacity by 23% this year in a move that highlights the opportunities for U.S. low-cost carriers as larger network rivals shrink domestic flying.
The Florida-based carrier's expansion in cities such as Dallas, Chicago and Denver, and into the Caribbean and central America, provides a particular challenge to AMR Corp. (AAMRQ) as 60% of its network overlaps with the third-largest U.S. carrier by traffic.
With the three largest U.S. carriers--United Continental Holdings Inc. (UAL), Delta Air Lines Inc. (DAL) and AMR--all pledging to keep capacity flat or lower this year, smaller airlines are filling some of the gap.
Spirit grew capacity by around 15% last year, and the 23% expansion eyed for 2012 lags only the 30% growth targeted by Virgin America.
Ben Baldanza, Spirit's chief executive and a former American Airlines' executive, said on a post-earnings' call that he sees opportunities to expand profitably beyond those captured by its existing fleet plan.
Spirit plans to add seven planes this year, boosting its fleet to 44, and has around 100 Airbus aircraft on order for delivery between now and 2021.
Baldanza outlined the capacity plans alongside a sharp rise in fourth-quarter earnings, notching up its fifth-straight year of profitability and an operating margin of 25.7% that leads the industry.
Net profit in the quarter rose to $24 million from $9.5 million a year earlier, with revenue up 26.7% at $273.9 million, driven by higher ticket prices and its focus on charging for extras such as bags. The result beat analysts' expectations.
The stock recently was up 0.3% at $19.29.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135; [email protected]

 

Yeah, I see how Europe has a lot of problems. Look at our LHR flights, some are quite empty. Now, it IS February and London isn't a vacationer's dream now, but the low flights show how business isn't traveling.

But aircraft are mobile assets - Europe not doing well? Put them on the Caribbean. Or Mexico. or SA. Get a tie-in with a hotel chain in the Caribbean and offer flight + hotel for a good rate.

If Asia is doing well, upgauge the flights we have. I know that 747s are going through the mod lines, but take the 330s off Europe and put them to Asia, replacing the 767s that are flying there. (DL might be doing that, I don't know)

 

Carl,

I believe that we will get the opener after it has been exchanged with the company. Time will tell.

Scoop

 

Travel around the World, overall, is above 2007 levels. Japan's going gangbusters thanks to the strong Yen. Latin America's the New World for commodity extraction. Domestic flying is doing well.... Meanwhile we're experimenting with blood extraction from Turnips.

Imagine if Wallmart announced a 50% price increase, on lowered inventory and store locations, and bragged of increasing revenues by 15% for providing fewer services ... oh' you want a bag with that? We'll need to collect a fee ....

What Alpha missed in his Econ 101, is what they covered in the third week:

 

BS! You are totally out of touch with reality if you think $60K-$100K jobs are a dime a dozen out there. You would be very hard pressed to find a $75K+ year job that you are qualified for if you were to hit the street job hunting.

 

You know these quarterly recurrents are pretty good but I get confused on the meteorology part.

This might have something to do with being ATLM88, but when it talks about "mountain wave", what is a "mountain"?

 

I think "mountains" are way west of the Mississippi River....out there in the thin air where the -88 demons live. Don't go...

 

It's that bump you fly by coming from DIRTY while being vectored for 26R, after your BDL overnight!