could be its last ever year of profit. A large part of FRs profits are in effect made by getting planes at a massive discount, trashing them for 5 years and then getting around the same price for them that they paid. That model is broke. They only sold 3 planes in the first half of 2009. They are also having to reduce the book value of the planes. With a need to sell 20-40 planes per year, the 2nd hand market is key to profits and cash flow.
I have not heard a comment yet about the oil price at which the become loss making with their lower income per seat.
Last year of profit ? Get real.
So hedging well below trend for 2010 and 2011 is what exactly ?
You ignore the obvious that average life of an aircraft is less than 3 years or 10 years less than the age of a Southwest aircraft who also run a 737 fleet.
Holding off on an order for 5 years to Boeing until 2015 will still see FR fleet younger than most comparable airlines.
Boeing knows a 200 aircraft order to 2018 is approx 5-6 months production at current rates, they want the order and know full well that it comes down to price.
Of course in 2003 when €-$ was .8 - $1 a $24 M 737 cost then over €30 Million where as now a €30 M 737 costs them €20M and as majority of earnings are in Euros then they really getting a huge benefit from dollar collapse.
Boeing will get their order eventually.