[Breeze] Airways
#681
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Joined APC: Feb 2008
Posts: 19,258
Training cost has real cost to the extent that you are forced to do extra training events that you would not otherwise have ever been forced to do, although granted, starting the training Before the 1 October date ameliorates the greater part which is the opportunity cost. But there is also the flip side.
Eventually, international flying WILL come back, and those widebody international guys displaced to narrow body aircraft (that many were not even previously typed in) will now be bidding back into their old equipment (or whatever has replaced it) generating new training events and these will have the associated lost opportunity costs.
And these are issues (and expenses) that an airline flying a single aircraft type - like SWA, NK, or F9, simply isn’t going to have to deal with. All they are going to do is downgrade junior captains and furlough junior FOs until the flying comes back and then upgrade and rehire which is going to cost less. Not saying everybody can’t survive or that I want anyone to be furloughed, just that in this situation as I see it developing, this is advantage LCC/ULCC. If international flying should somehow come back first it would be advantage Top 3.
I’m not emotionally invested in this, that just seems to me to be the way the cards read.
Eventually, international flying WILL come back, and those widebody international guys displaced to narrow body aircraft (that many were not even previously typed in) will now be bidding back into their old equipment (or whatever has replaced it) generating new training events and these will have the associated lost opportunity costs.
And these are issues (and expenses) that an airline flying a single aircraft type - like SWA, NK, or F9, simply isn’t going to have to deal with. All they are going to do is downgrade junior captains and furlough junior FOs until the flying comes back and then upgrade and rehire which is going to cost less. Not saying everybody can’t survive or that I want anyone to be furloughed, just that in this situation as I see it developing, this is advantage LCC/ULCC. If international flying should somehow come back first it would be advantage Top 3.
I’m not emotionally invested in this, that just seems to me to be the way the cards read.
#682
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#684
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Joined APC: Apr 2007
Posts: 148
#686
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Joined APC: Jun 2015
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Posts: 1,807
#687
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Joined APC: Mar 2020
Posts: 537
well well well
https://www.airliners.net/forum/viewtopic.php?f=3&t=1396873&p=22315535
from a post in this a.net thread:
https://www.airliners.net/forum/viewtopic.php?f=3&t=1396873&p=22315535
from a post in this a.net thread:
“Breeze has filed with DOT (jointly with Compass) to acquire the certificate of Compass. Reading between the lines of the DOT application, it appears the cost of the certificate may be about $2-3mm? Though obviously the actual number is redacted, this is what it appears it might be by squinting at the financial statements.
Initial aircraft will be 15 E-190s under contract with a lessor (Nordic Aviation Capital) - no longer Azul. First one to arrive Aug 2020. A220s pushed back to August 2021.
Neeleman is no longer funding the effort by himself. Some additional investors have thrown a modest amount of money (about $4mm) in the kitty, including Joel Peterson, Robert Milton, Michael Lazarus, various mgmt (Lukas Johnson, Trent Porter, etc). The usual suspects. There's also a CARES Act PPP loan (Small Business Administration) to the tune of $1mm. Since Breeze is not an airline yet, obviously it could not access the airline program. The document does not mention Neeleman putting in any more of his own money.
Application says that they're negotiating with a US investor for $25mm in equity, at which point three other investors are supposed to throw in another $20mm (total, between the three).
This is not the first time that this certificate has been transferred in almost the same way. The Compass certificate was once the Independence Air (previously known as Atlantic Coast Airlines) certificate. Northwest bought that certificate from the Independence Air estate after it started liquidation proceedings - FLYi stopped flying Jan 2006, the transfer application was filed April 2006, finally approved by DOT April of 2007, first revenue flight of Compass was May (with a CRJ200 - the airline was recertified with FAA with the CRJ200 so that manuals could be leveraged - after certification, Compass transitioned to E-175s). So from application thru DOT approval took 12 months.
So if this works, Breeze would be the inheritor of the Independence Air legacy, for what that's worth.
Breeze is seeking a more aggressive timetable than Compass managed back in the day. It would like to start service (charter service) by Oct 15, 2020 - so it needs a result in three months. So... aggressive. Covid? What's that?
October of this year is likely to be pretty eventful, given that it's the first month without CARES Act Grant restrictions. Scheduled service would start six months later according to the application. The timeline for the first year of operation shows over 15 aircraft in service within a year. And 18 scheduled service airports. Also... aggressive.”
Initial aircraft will be 15 E-190s under contract with a lessor (Nordic Aviation Capital) - no longer Azul. First one to arrive Aug 2020. A220s pushed back to August 2021.
Neeleman is no longer funding the effort by himself. Some additional investors have thrown a modest amount of money (about $4mm) in the kitty, including Joel Peterson, Robert Milton, Michael Lazarus, various mgmt (Lukas Johnson, Trent Porter, etc). The usual suspects. There's also a CARES Act PPP loan (Small Business Administration) to the tune of $1mm. Since Breeze is not an airline yet, obviously it could not access the airline program. The document does not mention Neeleman putting in any more of his own money.
Application says that they're negotiating with a US investor for $25mm in equity, at which point three other investors are supposed to throw in another $20mm (total, between the three).
This is not the first time that this certificate has been transferred in almost the same way. The Compass certificate was once the Independence Air (previously known as Atlantic Coast Airlines) certificate. Northwest bought that certificate from the Independence Air estate after it started liquidation proceedings - FLYi stopped flying Jan 2006, the transfer application was filed April 2006, finally approved by DOT April of 2007, first revenue flight of Compass was May (with a CRJ200 - the airline was recertified with FAA with the CRJ200 so that manuals could be leveraged - after certification, Compass transitioned to E-175s). So from application thru DOT approval took 12 months.
So if this works, Breeze would be the inheritor of the Independence Air legacy, for what that's worth.
Breeze is seeking a more aggressive timetable than Compass managed back in the day. It would like to start service (charter service) by Oct 15, 2020 - so it needs a result in three months. So... aggressive. Covid? What's that?
October of this year is likely to be pretty eventful, given that it's the first month without CARES Act Grant restrictions. Scheduled service would start six months later according to the application. The timeline for the first year of operation shows over 15 aircraft in service within a year. And 18 scheduled service airports. Also... aggressive.”
#688
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Joined APC: Jun 2010
Position: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.
Posts: 6,599
15 E-190s coming from a leaser. Hmmm. JBA seems to be wanting to accelerate dumping their 190s. Could these 15 be going back to the leaser early and then onto Breeze?
#689
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Joined APC: Mar 2020
Posts: 537
Nordic Aviation is the leasing company, which appears to have air Canada’s old E190s. Although I’m sure JB would love to give them some planes.
#690
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Joined APC: Mar 2020
Posts: 537
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