Quote:
Originally Posted by Adam P.
Most interesting thing to watch for mine will be the E-Jets. Virgin have a lot to learn about regional ops (hellooooo, fog season!!) and it is much harder to turn a profit with jets over the shorter stage lengths you get in the regional environment than it is with turboprops. When the going gets tough company-wide, will the Jungle Jets be the first to go?
|
adding to what you said Adam, regionals in the US are going to cut back on the regional jet fleet in the 50 seater category. Think prop would be more economic than regional jets (shortage stage length) (e.g. Kendell and their forray into CRJ200s or were they 100s?), at least in the 50 seats or less category anway.
having 2 expansions at the same time really complicates things for them. The international expansion to the US would probably be a VERY costly exercise - new a/c (even if it is leased), new staff, new departments, new products and so on - all of these are $$$$ - they'll need to do really well or else they would be in trouble.
With regard to oil, I still reckon it is a bubble. What goes up must fall down again. Just like the 70s oil shock. Oil prices went down after that.
Probably will in say 5 yrs time... but probably closer to the $80-100 US barrel range. People are blaming China but I did read somewhere that their consumption has actually decreased last few years - they might be stockpiling oil though.
I don't think the flying public has much to worry about. If one airline leaves the scene another will fill the void. Just like how Virgin Blue filled Ansett's departure. All we should worry about is the company staff and their jobs.