More debt and more stock
04-28-2021, 10:03 AM
#11
Gets Weekends Off
Joined APC: Jan 2018
Posts: 1,788
Originally Posted by Tranquility
If we’re able to pass the cost on to the passengers, then yes, we are at an advantage as we have more seats per airframe to disperse the added cost. If we aren’t able to pass it on, we’ll then you know....
The legacies, bolstered by payroll support and low oils prices have been able to tap into the ULCC domestic market to keep their metal and some cash flow moving. High fuel costs is not something most of them are in a position to ignore to quash low cost competition.
Ticket prices will go up for everyone, but the non ULCC competition will be less able to play in our park. Imoho anyway.
04-28-2021, 10:11 AM
#12
Gets Weekends Off
Joined APC: Jan 2018
Posts: 2,239
Originally Posted by FNGFO
Everyone passes the cost on to passengers.
The legacies, bolstered by payroll support and low oils prices have been able to tap into the ULCC domestic market to keep their metal and some cash flow moving. High fuel costs is not something most of them are in a position to ignore to quash low cost competition.
Ticket prices will go up for everyone, but the non ULCC competition will be less able to play in our park. Imoho anyway.
The legacies, bolstered by payroll support and low oils prices have been able to tap into the ULCC domestic market to keep their metal and some cash flow moving. High fuel costs is not something most of them are in a position to ignore to quash low cost competition.
Ticket prices will go up for everyone, but the non ULCC competition will be less able to play in our park. Imoho anyway.
04-28-2021, 10:58 AM
#13
Perennial Reserve
Joined APC: Jan 2018
Posts: 11,499
Originally Posted by FNGFO
Ticket prices will go up for everyone, but the non ULCC competition will be less able to play in our park. Imoho anyway.
If the ULCCs can’t outhustle the legacies in this environment I’ll be greatly surprised.
04-28-2021, 04:00 PM
#15
Perennial Reserve
Joined APC: Jan 2018
Posts: 11,499
Originally Posted by Qotsaautopilot
Just don’t want the debt to be crippling and Spirit isn’t exactly on the healthy debt side IMO and getting more is not the news I wanted to see.
Buying aircraft at rock-bottom prices is actually a pretty good deal if you can gainfully employ them, even if you take on debt to do it. Assuming it IS the bottom, and you CAN gainfully employ them. But if they are going to get the growth they anticipated in the last earnings call they will need additional aircraft purchases.
