Wheels falling off at RAH
08-23-2015 | 09:17 PM
#1481
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From: 737 Left
RAH has been paying off debt at an incredible rate They own outright the largest fleet of ejets, which are proving to be the desired fleet type for the next decade and beyond. They support an increasingly large percentage of operations for all three major carriers, lift that cannot be automatically transferred to another FFD carrier. Although the future at RAH is uncertain, I think it is disingenuous to say they don't have many assets. They have more than any other regional, because they own the aircraft.
RAH doesn't own all the 170/175 which are operated by them and their subsidiaries. On the 3Q 10Q they show liabilities (debt) of $2.8 billion against cash of $191 million.
That isn't a fantastic cash position.
08-23-2015 | 09:53 PM
#1482
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The two things the wholly owned operators have to offer is flow that can slow and upgrades entirely dependent on new hires coming in the front door. If RAH gets $40.00/hr first year pay, trip and duty rigs, full cancelation pay, and a quick upgrade on the large amount of aircraft coming to market, I think the wholly owned carriers might find themselves outgunned. And as an opinion I think the final contract RAH pilots vote on will look better than the llllbfo we currently have in front of us. Competition will heat up for sure.
08-24-2015 | 02:27 AM
#1483
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From: 737-Right
The airplanes are owned by the Export Bank of Brazil until RAH pays them off.
RAH doesn't own all the 170/175 which are operated by them and their subsidiaries. On the 3Q 10Q they show liabilities (debt) of $2.8 billion against cash of $191 million.
That isn't a fantastic cash position.
RAH doesn't own all the 170/175 which are operated by them and their subsidiaries. On the 3Q 10Q they show liabilities (debt) of $2.8 billion against cash of $191 million.
That isn't a fantastic cash position.
08-24-2015 | 03:17 AM
#1484
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I just can't agree. The wholly owned airlines are part of a company that represents only a third of RAH's business. Having a large private contractor like RAH or skywest on the payroll is a huge bonus to the codeshare partners due to the leverage they can use against their own wholly owned carriers. I agree the smaller private airlines will fold, but the big two with the most modern aircraft on property will be the survivors. I'm not saying it is a favorable outcome, but it is the one that will happen in my opinion.
Not that wholly owneds are immune either, but mainline carriers will be in a far better position to throw whatever money is necessary to keep wholly owneds going, more than rah will be willing or able to do.
Rah may have to focus its flying on a single mainline carrier. Do a poor job for 3 vs a good job for one.
08-24-2015 | 03:19 AM
#1485
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From: 737-Right
08-24-2015 | 04:09 AM
#1487
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They won't show up unless that upgrade drops to less then 2 years. AWAC has one of the best contracts and pay and they are trying to get more pilots there. Plus some of there junior FO's are looking at places that don't have a 4 year upgrade time.
08-24-2015 | 05:18 AM
#1488
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From: CRJ FO
Last time I checked 2nd year CA pay is better than any pay on any FO scale at a regional. $40 /hour will attract some, no doubt. But not the way you think it will. I think many of you are missing the point that no matter what contract gets voted in, it is likely too little too late.
08-24-2015 | 06:19 AM
#1489
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The airplanes are owned by the Export Bank of Brazil until RAH pays them off.
RAH doesn't own all the 170/175 which are operated by them and their subsidiaries. On the 3Q 10Q they show liabilities (debt) of $2.8 billion against cash of $191 million.
That isn't a fantastic cash position.
RAH doesn't own all the 170/175 which are operated by them and their subsidiaries. On the 3Q 10Q they show liabilities (debt) of $2.8 billion against cash of $191 million.
That isn't a fantastic cash position.
To me, it looks like their expenses are becoming unsustainable. Unless they renegotiate with the mainlines, any new pilot contract could easily send them into bankruptcy. If a bunch of pilots jump ship, it would be even worse for them.
08-24-2015 | 06:43 AM
#1490
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You can't pick two unrelated numbers off a balance sheet and make a fair argument.
To me, it looks like their expenses are becoming unsustainable. Unless they renegotiate with the mainlines, any new pilot contract could easily send them into bankruptcy. If a bunch of pilots jump ship, it would be even worse for them.
To me, it looks like their expenses are becoming unsustainable. Unless they renegotiate with the mainlines, any new pilot contract could easily send them into bankruptcy. If a bunch of pilots jump ship, it would be even worse for them.
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