Imagine running a business as complex as an airline. There are so many exogenous factors to consider – the weather is an obvious one and, of course, the regular contagions like wars, SARS, COVID, and financial meltdowns. Then you have…
Remember, back in the mists of time, before the Virus? It feels like so long ago. Back then the world seemed so “normal”. Here is how our model was forecasting future operating margins for the big US airlines based on…
Scope Clause is something that is almost certainly an issue, along with furloughs, that is causing US pilots headaches. So, what are some of the options or scenarios that could play out? Let’s look at the big three US airlines…
The US airline industry continues to suffer through its worst crisis. The downstream effects are slowly making their way through the general economy. If there was any question as to this impact of air travel constraint in the era of…
Typically the airlines don’t pay much for their engines using “Power-By-Hour” contracts instead. From industry sources, we understand more than half the airlines utilize these contracts. On the lower side, we might see GE and CFM in high-sixties percent and…
The US airline industry has followed a path previously walked by the auto industry – cap in hand to Washington for help. This does make sense, given the massive disruption that hit within the past three weeks. So what are…