GF
To be honest, I wouldn't know the first thing about aircraft finances or the financing of new or used aircraft. So, I have to ask, if A and B sell at 50% how is it for no other reason than to try and maintain a duopoly or to kill Bombardier. (Business is business.)
That said...
By comparison, if I buy an expensive car today and the dealer sells it to me at half price, what happens to my resale value 5 years on? What if he sells all of those expensive cars at half price? Doesn't the impact on resale values 5 years down the road take a nosedive? Isn't this exactly what A and B are doing right now in an attempt to kill BBD? How is that a good thing for A and B? How is that a good thing for the airlines buying those aircraft today? Aren't they going to be mad as hell with A and B in about 10-15 years? Who's going to eat those used aircraft values? What will that do to share prices of A and B 5 years down the road?
I have no insight as to who may or may not buy the C series but I'd think replacing the B717s at Delta puts C series in a great position for an order from DL. With AC buying C series, their partner UA might well choose to buy it as well.
I think the best thing for "the industry" is a third (or fourth) choice of aircraft OEM to break that single aisle duopoly of A and B. If LCCs are good for "the industry" so would breaking the current duopoly.
I don't think BBDs imminent demise is as imminent as some seem to think.
Your comments are always welcome.
Willie
