How long can Frontier survive the hail storm?
 

The hail damage recovery is taking a lot longer than anyone thought. From I read, 18 planes were damaged and as of today only five of them are flying. Is that correct?

BB is chartering out to Allegiant, USA 300, Spirit -- I think anyone that has wings, just to get passengers home. It has to be costing them a fortune! BB and the boys were struggling to keep the ship right side up before this catastrophe, I have to believe this could be the final nail if this goes on much longer. Has anyone heard how well they were covered with business interruption insurance? That may be their only chance for survival at this point.

Yep, that's our understanding of things. That bad blizzard costs us something like $10 million, and that didn't cost us any airplane damage. It has me a little on edge.

The rumor is that the financial impact will be small due to insurance, but I haven't read that anywhere reliable yet.

Frontier's last hail storm helped them out. They renewed their fleet and sent the bill to their insurance company.

But consider, if they are thinking of dissolving Frontier, there is no better time than when you have a buyer for your airplanes at above market (agreed value policy) prices.

Hail damage usually is not an airworthiness issue. Think about it, golf balls go further on less energy because they have dimples :)

Airlines usually do not carry business interruption coverage, but I've never seen Frontier's policies. Republic did not carry BI coverage and I'd think maybe they consolidated the policies. Typically airline management teams are quick to maximize back office cost savings, like their risk management programs.

I can see it now: Boeing finally announces their new narrowbody or reengined 737.....w/ dimples! Just another feature to improve fuel efficiency 1-2%.

According to Bryan Almighty, total cost will be around 10 million, after insurance, maybe less.

Take that for what it's worth. I trust his info less than a used car salesman...

Mythbusters dimpled a car and improved its gas mileage.

Yes that was the announcement, but you missed the fine print: Boeing will outsource their idea resulting in the dimples being backwards. This little error will add 3% to the weight of the airplane and increase drag 5%. Then Boeing will not blame outsourcing, rather those union goons in Seattle. Sigh.

Carl

Lol. So true Carl.....so true. :D

why dont you guys vote in another paycut so you can help the company out (sarcasm)

You laugh but ExpressJet has an ERJ with the "golfball mod"...240 someodd dents on the nose section from an encounter with hail. There's a note that prints out with the paperwork that states something to the effect that the dents have been cataloged and found by Embraer to be within tolerances and shall be considered a permanent feature of the aircraft. Always makes me laugh to see it but I'll be damned if the thing doesn't seem to fly better!:D