Originally Posted by
wheels_down
Tiger said 30 Aircraft by 2011 too.
Once the lease fees creep up after the first few years fuel stabilises, like Tiger, along with the issues of a small fleet, the place falls apart.
The market here is relatively flat, the Tiger market share of a dozen aircraft will obviously be up for grabs, but anything above a dozen sounds risky.
this is NOT tiger/jetstar. Rex already have existing customer base & 50 plus aircraft. Virgin/Qantas will no longer get ANY rex regional passengers connecting to trunk routes.
Why would lease fees creep up ? If they are smart, they would lock in long cheap leases. What other choice do aircraft owners have ?
Wonder if they are hedging any fuel ? Of course that costs money, but can save a lot of money too. Southwest were huge on hedging fuel & it was said all their profits one year recently, were from hedging fuel.