So the company needs a deal to get out of its multi-year 50 seat leases, some of them lasting until beyond 2020. So why did the company sign leases this long in the first place? Think about it - to get out from under the lease, they have to sign new leases with the same companies for 76 seat lift.
So was our management tremendously shortsighted? Possibly, but maybe they thought this through in the first place. I never understood the excessive length of these leases but now it is beginning to make sense.
Of all the shortcomings of this TA (and there are quite a few) - the Scope issues worry me the most. As a few have already said - I would rather have our current Scope then allow so, so many more 76 seat jets. The 50 seaters are dying a natural, albeit, slow death on their own. I am all for a 50 seat limit but we are giving away too many 76 seaters.
And it gets better. So our management gets out of 50 seat leases by signing excessively long 70 and 76 seat leases. Guess what happens in three years, probably as soon as they hit the new 76 seat limit. They need help to get out of these "money losing" 70 and 76 seat leases. Hey DALPA, we need your help, again! We will give up xx 76 seaters for xx 90 seaters.
Basically we keep giving on Scope - even if we are making billions. I have not looked at the JV aspects of this TA yet but the small jet scope seems concessionary to me.
Scoop