Republic Studies Jet, Flight-Slot Sales to Reap $113 Million - Businessweek

Selling the horses to buy hay

 

Scary, also they deferred deliveries as well!
http://www.airlinepilotforums.com/re...blic-190s.html

 

More like selling horses to buy a car.

Looks like JetBlue sees that those horses aren't that profitable for them either.

JetBlue Details Embraer Cancellations, Deferrals | AVIATION WEEK

 

JetBlue has chosen to continue growth with Airbus instead flooding the market with EJets, It's no secret that flying 2 A320 in a route is more fuel efficient than 3 E-190 specially in the markets where JetBlue is trying to grow (where slots are a limited) Just like is more economical to run 2 E-190 in a route than 4 50 seat RJs. JetBlue is growing at a fast pace and they are evolving as they do. They don't want to flood the market with EJets when the routes support the Bus.

AMR would love to fly these EJets and park the ERJs. Republic has more problems right now, FFD is not as profitable when your employees demand better wages and are trying to strike. There is a difference when the major owns the aircraft and shops the aircraft and the routes round than when RAH owns the aircraft and shops the route around and you are stuck with an airplane with no routes to fly them on.

 

The US/DL slot swap in LGA/DCA means some slots will be auctioned off towards the end of Nov. 2 bundles of slots in LGA and 1 in DCA. Whoever doesnt get the DCA slots will probably buy some from Republic/Frontier. Could get interesting

 

those slots are currently leased back to usair. they were all a part of the whole mid-atlantic/usair bankruptcy deal.

 

190s are not profitable NOW. When BB bought Frontier oil was $38/barrel and that made the airplane very good financially. JB 's initial order of 190s were up to 90 , now they are limiting it because of increased CASM.
They sold the production of 11 to Azul and deferred some.

RAH is trying to do the same.. If they can get 195s that would even be better but everything is for reducing the cost of each seat..

 

Huh?? When was oil last around $38?

 

Early 2009

 

Anyone who expected oil to remain at $38/barrel and made long-term decisions based on that information ought to have their head examined. It is a finitely available commodity and the price can only be expected to rise.