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Originally Posted by MCDUmanipulator
(Post 2990605)
Isn’t our break even around 60% load factor? At least that’s a number I’ve heard before. If that’s true doubt spirit is to worried about cutting capacity.
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Say you have an airline with a whole lot of planes being delivered. Passenger demand falls off for a few months. You owe payments on these aircraft. Do you A) park them somewhere, stop hiring, furlough pilots and cower in a hole until it’s all Mai tai’s and yahtzee again or B) continue adding routes and frequencies that help defray the costs of planes and crew, siphon off as much of the remaining demand as possible, and get in position so you are ready to push hard again when the cycle turns.
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The questions is how much cash on hand do you have? What's the burn rate? Go back and protect the core where the profit is made. If you're a Legacy you slash and burn non-profitable routes. The Asia routes are DEAD! Summer Europe could also be real bad too. If you're Spirit you jump into markets that you can make a profit where others can't!! We run so lean that this gives us the ability to go stick our nose in places where others will pull back. As long as the Beaches stay open, Micky's House remains open and Vegas keeps dealing cards Spirit is in a great position to keep growing. My guts says this is a small blip and we'll go back to normal very soon. The jobs numbers are great and that means people have money! The USA is a great place to be right now!!
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Reduced capacity in April. I’d expect interviews to be cancelled.
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Originally Posted by MCDUmanipulator
(Post 2990907)
Reduced capacity in April. I’d expect interviews to be cancelled.
1. The new aircraft are going to keep coming 2. Training pay ain’t much. 3. First year pay ain’t a great deal more. 4. Still going to have to pay trainers and for sim maintenance. 5. The lag time if you stop and start is going to make things ugly. Generally, cutting back the rate of training is more cost effective than abrupt cessation. |
Originally Posted by Excargodog
(Post 2990941)
or possibly not because:
1. The new aircraft are going to keep coming 2. Training pay ain’t much. 3. First year pay ain’t a great deal more. 4. Still going to have to pay trainers and for sim maintenance. 5. The lag time if you stop and start is going to make things ugly. |
Originally Posted by MCDUmanipulator
(Post 2990907)
Reduced capacity in April. I’d expect interviews to be cancelled.
Not at Spirit, but Jetblue. JB reduced capacity by 5% for April but have said no changes so far to new-hire pilot classes or interviews. They re-opened April bidding with the 5% capacity cut and you really couldn’t tell the difference. Average Line Value was about 2 hours less. I’d expect the same for Spirit, at least for the near future. |
Originally Posted by Excargodog
(Post 2990941)
or possibly not because:
1. The new aircraft are going to keep coming 2. Training pay ain’t much. 3. First year pay ain’t a great deal more. 4. Still going to have to pay trainers and for sim maintenance. 5. The lag time if you stop and start is going to make things ugly. Generally, cutting back the rate of training is more cost effective than abrupt cessation. |
The music just stopped! 3% reduction!
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