Delta Brazil and E190's
Aug 17, 2006, 8:31 pm
#1
Original Poster
Join Date: Aug 2006
Posts: 146
Delta Brazil and E190's
A lot of aviation boards are mentioning the fact that Delta could be trying to put more flights into Brazil. Other boards on a whole different subject say Delta is looking at the E190's.
Is there any chance Delta is looking at the E190's ON PURPOSE, telling Embraer that they would buy E190's if Brazil would give them more frequencies???
Something to think about.....
Is there any chance Delta is looking at the E190's ON PURPOSE, telling Embraer that they would buy E190's if Brazil would give them more frequencies???
Something to think about.....
Aug 18, 2006, 11:42 am
#2
Join Date: Jul 2005
Location: BOS, Latin America
Programs: AA Plat
Posts: 712
Welcome to FT. Interesting first post...
Think about the cost/benefit here. Would DL buy E190's just to get an extra frequency or two to Brazil? The answer to this question seems obvious when posed in these terms -- it would be a horrible business decision if the E190 is not needed in the fleet.
Your question therefore presumes that DL needs an E190-sized aircraft for their fleet. In this case, maybe they'd prefer Embraer because the Brazilian gov't might give them preference for an extra frequency. My guess, however, is that the value of an added frequency to Brazil is significantly less than the cost savings (and margin increases) that the correct choice of a/c would provide.
In other words, in a situation where DL needs an E190-type a/c, they would be nutty (in a business sense) to buy a/c according to the destination country instead of fleet economics.
Think about the cost/benefit here. Would DL buy E190's just to get an extra frequency or two to Brazil? The answer to this question seems obvious when posed in these terms -- it would be a horrible business decision if the E190 is not needed in the fleet.
Your question therefore presumes that DL needs an E190-sized aircraft for their fleet. In this case, maybe they'd prefer Embraer because the Brazilian gov't might give them preference for an extra frequency. My guess, however, is that the value of an added frequency to Brazil is significantly less than the cost savings (and margin increases) that the correct choice of a/c would provide.
In other words, in a situation where DL needs an E190-type a/c, they would be nutty (in a business sense) to buy a/c according to the destination country instead of fleet economics.
Aug 18, 2006, 2:22 pm
#3
Join Date: Dec 2000
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It would be an interesting theory if Brazil had any say as to which airline gets their frequencies.
But they don't - the US and Brazil negotiate the frequencies then the US DOT awards them.
But they don't - the US and Brazil negotiate the frequencies then the US DOT awards them.