Quote:
Originally Posted by Riverside
We are picking up one erj from Mexico next week.
I'm sure compass has the bid in for the erj175 cause that's what they were talking about on their forum.
Saw Jim yesterday after I got back from my 4 day as he was updating our ship sets. He didn't mention anything new going on.
I think your speech is the same speech everyone got, in order to make people believe there is a market for 50 seaters.
Thanks, I already new about the one new airplane from mexico.
Yeah, I know the speech is what everyone got too. I just ignored it as while yes, there will always be a small market for 50 seat jets, it is reducing and will continue to do so over the next several years especially because of staffing issues. I don't think a company that has been able to remain profitable and privately held for as many years as TSA has been would refuse to see that coming and just let themselves dwindle into oblivion even with two other money making arms still going. I'm sure we are looking for all sorts of ways to grow, we just are way more conservative in our grabs than our competitors.
Compass would be stupid not to bid on the first batch of 20 AAG planes set to deliver Q1 2015, that wasn't what I was thinking TSA would be bidding for. Beyond that Compass has nothing to do with trans states other than that they are under the same holding company and owned by the same guy. AAG claims the later 20 E175s are going to an operator that does not already have an E175 type. The leaves compass out of the picture. As does it leave republic and mesa out of the picture. Also republic doesn't want more AAG flying right now as it can't staff its current operation and mesa is focused on the huge growth it just got from UAL. That being said, there is still PSA, PDT, and AirWiskey that are old us airways favorites, and strong AAG exclusive operators.
None the less, I would **** a golden brick if we actually got E175s. I know that's not likely.
But, none of this addresses the economics questions I asked:
"First, knowing that uncle H won't bid on anything at a loss, how to the economics of bringing a new type online work? And lets leave compass, and its already existing 175 type out of this.
I know a new type needs an SOP, manuals, proving, training, etc and that instructors must be made who make check airmen who make regular crews etc. and thats just from the pilot stand point. Would it be possible to simply copy most of Compass's stuff and make a few modifications to reduce the cost of a new start up program since we are both TSH?
Assuming AAG owns the airplanes and intends to lease them to us to operate them, I imagine that lease comes at a steal style price, what is the process that would need to be done in order to get those planes from imaginary to flying under the TSA name and how much does that cost?
Is it even possible to arrange a way to carefully ensure a steady and decent profit stream for a situation like TSA getting 175s from AAG for AAG using the combination of a good lease deal and a strong contract that would still be able to underbid our competitors, knowing that 20 of these AAG planes are going to someone who does not currently operate them?
These are of course all theoretical questions and an attempt on my part to gain a little more understand in how a FFD regional airline business model works."