Orders?
 

So what's this about:

United Airlines Takes Over Republic Order for 24 Embraer 175s

Let the experts speak

It means nothing more than we are buying our regional jets. We already own Mesas fleet of 175's and maybe a few of the SkyWest 175's. I think United owns close to 100 175s with this anouncement.

It makes sense to buy the RJs, if a regional folds, can't staff or goes bankrupt and demands higher prices from United, we can reposes the jets and move them elsewhere. Maybe even mainline.:eek:

All 3 airlines lost their shirts when Republic went bankrupt. RAH owned the jets that they needed and bent them over for more money in court. Lesson learned maybe? Just my theory.

Does this not sound really bad though? They "delay" an order of -700's that were supposed to take over for the unreliable regional product and decide to take over someone else's order of big RJs? Seems like this announcement confirms less mainline jobs and more outsourcing

Not quite. These 170s were already "ordered" for UAX.

The method of payment (own vs lease) changed AND it saves UA money because UA can finance for less than a regional can lease.

Since UA reimburses the lease payment UA is ultimately on the hook either way. As mentioned this also gives UA ultimate control of the frames.

Oh ok...that makes sense. Thanks for the clarification

The only asterisk on that is that it sort of kills the "we are deferring the -700's to reduce CAPEX" when they turn around and spend $600 million of the $1.6 Billion saved on E175's. The other Billion is forecast to be returned to the shareholders. So if it's not about the CAPEX, what is it about?

Scope is my guess. I would not AT ALL be surprised to see a SNB order soon to unlock the 76 seaters

I would love to see 75 EMB195 orders and to get the 100 175s United leases to the the regionals back in house and swap the deferred 61 frames announced yesterday with Alaska for all of VAs Buses

Unaccurate, all of Skywest's 175s are owned by Skywest

Unaccurate is Inaccurate! ;)

haha. touché!