Originally Posted by
nomess
The perils of operating a tiny fleet with very high costs, and low yielding low demand routes. The revenue only covers the leasing and fuel. I mean, they have stated the case, you don’t make cash from such a small fleet, but that can still sink you before you can even get scale. Looking at some market rates…
6xMAX Lease rates $100,000 day
5000 seats per day, 3000 filled @$120 $250,000 (removing taxes and charges)
Fuel $140,000 day
I mean, I’ll give them credit, they have come out recently advising the importance of profit focus, and where they need to head. But you cannot deny, the house is burning, will require significant injection, which is doubtful looking at events as mentioned above, abroad.
The wet leasing costs would be just eye watering. I’d hate to think. I’ve seen an invoice in the past from a local outfit and I nearly fell over, let alone accomodating a large contingent of Canadians from the mothership.
don’t mention salaries for staff, terminal and ground handling fees and charges, insurance, engine and maintenance reserves, turn around checks, landing and parking charges, advertising, refunds and other misc and admin costs plus plus plus…