Originally Posted by
smiling monkey
I can see where the rumours of the Ejets returning are coming from. When you're paying $45 mil per year in leasing costs to have them parked, and at the same time wet leasing Alliance to fly your regional routes, it makes more sense to bring them back and have VARA operate them. It's a no brainer in airline management 101.
To bring them back would mean ignoring the reason VA pulled out of E-Jets in the first place. As wasteful as it seems, it is cheaper to pay the $45m than absorb the operating losses which would be incurred in running them.
Then there are the start-up costs, there goes another $12-$15m VA don’t have.
What surprises me is that VA have persisted in asking what they are for these aircraft rather than offer incentives to get them let out. Better to incur $10m in incentive costs and save $35m than the current scenario.
Definitely not the smartest guys in the room