Trans States signs LOI for up to 100 MRJs
#12
#13
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#15
The other reason is what size did TSA buy? And who are they buying it for? Is it themselves? If so, did UAL, USAir and DAL just fund a competitor say in STL? Which means this isn't a regional airline, this is budding national or LCC they're trying to form.
And most major pilots won't go over to the regional thread so they'll miss out on the news.
From ATW:
The LOI was finalized with little fanfare on Dec. 27, 2010, according to the MRJ corporate newsletter that did not identify whether TSH ordered the 70- or 90-seat variant of the aircraft.
In addition to the engine order, Pratt said TSH signed an exclusive 12-year maintenance contract covering the powerplants.
"We believe that the MRJ is a game-changing regional jet with its incredibly fuel efficient next generation Pratt & Whitney PurePower geared-turbofan engines, together addressing the vital needs of the environment, as well as the critical needs of passengers and airline operators," TSH President Richard Leach said in a statement.
#17
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Joined APC: Apr 2008
Position: DAL FO
Posts: 2,137
BINGO! I was waiting to finish reading all the posts, but you beat me to it. Can we finally drop the -RJ from these aircraft designations. There is nothing "regional" about these airplanes. I know it's been said many times, but it bears repeating. These aircraft (and all the others for that matter) belong at mainline.
The question is which pilot group do they think they can sell this turd sandwich to? I doubt they're going to run their own op given the history of these things. Even RAH with a strong balance sheet is having trouble with their Midwest abortion in MKE.
The question is which pilot group do they think they can sell this turd sandwich to? I doubt they're going to run their own op given the history of these things. Even RAH with a strong balance sheet is having trouble with their Midwest abortion in MKE.
#18
Gets Weekends Off
Joined APC: Oct 2006
Position: Home with my family playing with my daughter as much as possible
Posts: 591
BINGO! I was waiting to finish reading all the posts, but you beat me to it. Can we finally drop the -RJ from these aircraft designations. There is nothing "regional" about these airplanes. I know it's been said many times, but it bears repeating. These aircraft (and all the others for that matter) belong at mainline.
The question is which pilot group do they think they can sell this turd sandwich to? I doubt they're going to run their own op given the history of these things. Even RAH with a strong balance sheet is having trouble with their Midwest abortion in MKE.
The question is which pilot group do they think they can sell this turd sandwich to? I doubt they're going to run their own op given the history of these things. Even RAH with a strong balance sheet is having trouble with their Midwest abortion in MKE.
#19
The only way a fake virtual airline could get the credit to actually get planes to lease to other airlines to operate would be through the credit chain generated by rock solid long term deals. I really doubt the investment community is so ignorant and stupid that they can be so easily tricked into thinking an airline can operate brand new planes on a lease as magically "debt free". If it is done that way, every single red cent of the debt associated with DL doing it themselves will still be DL debt because DL will still be 100% committed to it for the exact same dollars, years and terms...PLUS a guaranteed profit for the bogus service to begin with. IOW DL will still bear 100% responsibility for the debt plus the additional overhead of the fake shell corporation that offers nothing other than the illusion of accounting trickery that not even the dumbest first year MBA 101 student would fall for. I really don't think the investment community is that ignorant as to fall for such a simplistic and sophomoric trick.
For the jets that the third party carrier owns, we basically pay the lease payment in a "fee" as part of the ASA. DAL is still committed though the ASA to the lease payment and committed to it by that agreement, but now it is a cost item and not one that hits DAL's debt side of the ledger. It is a commitment and part of the operational expense of the ASA.
It is accounting 101. The debt from those jets does not hit delta's debt ledger.
Bringing this forward. Could they do this with new metal? This time doing it with the regional becoming a debt holding company? Maybe. They could also use other outfits as well. Point is that you can take the debt off the balance sheet, make it a cash flow expense item depending on how it is allocated. Yep, delta loses the depreciation of an owned asset. It is not the smart answer. It is always better to own your assets and take the depreciation.
It could also be that TSH just wants to get in line for all of these jets so they can sell the slots at a premium to their mainline partners.
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