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-   -   DOT Final Order-Continuation Of Service (https://www.airlinepilotforums.com/spirit/128883-dot-final-order-continuation-service.html)

Rocinante 04-09-2020 07:18 AM


Originally Posted by FNGFO (Post 3027221)
Spirit was in the 4% range for market share in 2019. Hence my curiosity about flying being added back in to closed stations.

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Originally Posted by NKSpilot (Post 3027476)
Maybe FLL-MCO-TPA-RSW-FLL circle three times a week would fulfill the requirement for all those airports? Something like that would be the best way to minimize operating costs.

A round robin like that would be an innovative way to meet the requirements and cut costs. It could be done in one FDP too.

So, some more very rough napkin math. Assuming a rough correlation of 4% market share to 4% grant entitlement, that's around $1 billion of grant money (25,000,000,000 * .04 = 1,000,000,000). I've seen numerous estimates on the flight hour cost of an A320, but generally in the $7000-$10,000 range. Assuming an average 2.5-hour block, and taking the middle of that operating cost range, we might be looking at ~$21,250 per flight (8,500 * 2.5). Suppose the company even had to double our current 56 flights per day to meet the government's requirements, that's an additional $1,190,000 per day (21,250 * 56), or $35,700,000 per month (1,190,000 * 30), or $214,200,000 for the six month period (35,700,000 * 6). Granted, this math is extremely crude, but ~1 Billion > ~250 Million.

Seems like they'd take the money?

Silver02ex 04-09-2020 07:29 AM


Originally Posted by CAirBear (Post 3027810)
Exactly. Even if we add another 40 flights a day to comply (not sure), even that isn’t much.

I will also add this. If you look at May’s schedule (just look up random cities that we stop serving now) MSP, PDX, DEN and so on. You will see that (as of now) we will start those back up in about 4-5 weeks. So if we don’t get the exemption, all we are doing is starting those stations back up earlier to meet the requirements. I just do t see us doing 56 flights a day in May based on current May’s schedule.

FNGFO 04-09-2020 07:45 AM


Originally Posted by GrillMaster (Post 3027807)
arent we currently doing 56 a day? How is that 10x what we are doing now?

Got it in my head that we were doing 56 a month. Early morning math error.

FNGFO 04-09-2020 07:49 AM


Originally Posted by Rocinante (Post 3027845)
​​​​

A round robin like that would be an innovative way to meet the requirements and cut costs. It could be done in one FDP too.

So, some more very rough napkin math. Assuming a rough correlation of 4% market share to 4% grant entitlement, that's around $1 billion of grant money (25,000,000,000 * .04 = 1,000,000,000). I've seen numerous estimates on the flight hour cost of an A320, but generally in the $7000-$10,000 range. Assuming an average 2.5-hour block, and taking the middle of that operating cost range, we might be looking at ~$21,250 per flight (8,500 * 2.5). Suppose the company even had to double our current 56 flights per day to meet the government's requirements, that's an additional $1,190,000 per day (21,250 * 56), or $35,700,000 per month (1,190,000 * 30), or $214,200,000 for the six month period (35,700,000 * 6). Granted, this math is extremely crude, but ~1 Billion > ~250 Million.

Seems like they'd take the money?

Well, the money can only allegedly be used for payroll. I guess they could plan to not spend whatever portion they don’t need for the six months and then use it for future payroll needs in a goofy numbers swap to make it look like it isn’t eventually used to cover operating expenses.

FNGFO 04-09-2020 07:53 AM


Originally Posted by flyingpuma1 (Post 3027825)
Did you see the reason Spirit listed for not wanting to serve the airports they listed

“To the extent that the CARES Act support for contractors is not sufficient or properly distributed, Spirit may have to financially support contractors in certain markets, As of date of filing and based on publicly available future airline schedules, this city is well-served by numerous other airlines”

I’m doubtful that the govt will approve these exemptions because by this logic every airline could say “another airline goes there so I don’t need to.”


Sent from my iPhone using Tapatalk

CLT would be good example of this being valid. The big boys aren’t about to dump their hubs. So it makes sense for airports like that. Or for ones that have 10 different airlines servicing them like Columbus.

Im sure everyone will put forth such arguments, and that the DOT will have to pick and choose a bit, but better to ask and win some than not and win none.

Rocinante 04-09-2020 08:06 AM


Originally Posted by FNGFO (Post 3027871)
Well, the money can only allegedly be used for payroll. I guess they could plan to not spend whatever portion they don’t need for the six months and then use it for future payroll needs in a goofy numbers swap to make it look like it isn’t eventually used to cover operating expenses.

Right, and even though it's designated for payroll, you figure whatever they don't have to spend on wages can then go towards anything else.

Left Handed 04-09-2020 09:34 AM


Originally Posted by Rocinante (Post 3027845)
​​​​

A round robin like that would be an innovative way to meet the requirements and cut costs. It could be done in one FDP too.

So, some more very rough napkin math. Assuming a rough correlation of 4% market share to 4% grant entitlement, that's around $1 billion of grant money (25,000,000,000 * .04 = 1,000,000,000). I've seen numerous estimates on the flight hour cost of an A320, but generally in the $7000-$10,000 range. Assuming an average 2.5-hour block, and taking the middle of that operating cost range, we might be looking at ~$21,250 per flight (8,500 * 2.5). Suppose the company even had to double our current 56 flights per day to meet the government's requirements, that's an additional $1,190,000 per day (21,250 * 56), or $35,700,000 per month (1,190,000 * 30), or $214,200,000 for the six month period (35,700,000 * 6). Granted, this math is extremely crude, but ~1 Billion > ~250 Million.

Seems like they'd take the money?


Per hour cost is a little high I think. Our CASM ex fuel is 5.4 cents per seat mile. For a 2 1/2 hour trip which is about 1000 miles that’s $54 per seat. Times 182 seats on a 320 is $9828. That’s $3931 per hour. That’s all costs including Pilot salary, paying contractors, toilet paper at the GO, Bendo’s bonus, Ted’s guitar lessons, etc. Fuel cost is on top of that, but at a dollar a gallon it’s only about $4 more per seat. Which only reinforces your point that grant money will go along way for us.

Rocinante 04-09-2020 09:45 AM

Cheers, thanks for the better numbers.

elmetal 04-09-2020 10:14 AM


Originally Posted by Silver02ex (Post 3027854)
I will also add this. If you look at May’s schedule (just look up random cities that we stop serving now) MSP, PDX, DEN and so on. You will see that (as of now) we will start those back up in about 4-5 weeks. So if we don’t get the exemption, all we are doing is starting those stations back up earlier to meet the requirements. I just do t see us doing 56 flights a day in May based on current May’s schedule.

Like I said in the other thread and was grilled for whatever reason, may schedules will have 1,2,3 4 days (maybe even 5) and will include a lot of cities we're not currently serving in April. so you're right to think that.

iahflyr 04-09-2020 04:23 PM


Originally Posted by NKSpilot (Post 3027476)
Maybe FLL-MCO-TPA-RSW-FLL circle three times a week would fulfill the requirement for all those airports? Something like that would be the best way to minimize operating costs.

Alaska is doing exactly that. They are bringing their “milk runs” to the lower 48.

https://crankyflier.com/2020/04/09/a...-requirements/


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