Replies to post #92697 on Savvy Trades and Investments

[Bmrboy]

I think that report mentions them leasing a CRJ-200 and converting it into a freight configuration. Maybe they are testing the feasibility of moving to cargo.

[BTuna]

Re HRBR

I browsed airline industry forums for over an hour yesterday . . . there's a ton of talk about about crj200 dilemma. An entire thread was called "The CRJ-200 replacement- the plane that does not exist". The main problem is so many of these regional routes can't fill 68+ seats that the next size up planes offer, so you lose any benefit of newer, fuel efficient engines. That's why HRBR actually bought a few more recently, they are cheap and the right size for their routes to be profitable. The cargo conversion testing is very recent, only Wisconsin and one other regional I can't remember have started trying it . . .but that does not solve the problem of a replacement.

Industry folks were split, some say those routes will just get dropped and not replaced with anything. Others say the major airlines won't want to lose the flow-through (I may be using the wrong term here) passengers to their hubs. Others also pointed out congressional subsidies may help keep the routes alive with larger money losing airplanes because the politicians don't want to lose passenger flight service to these towns for both personal and political reasons.

I'm sure there is going to be more pressure to keep servicing these markets than not, it effects a lot of jobs and people.

I also maintain this stock is way undervalued at anything $2 or under. The worst case scenarios are already priced in imho, so my conviction to buy more on the last drop under $2 remains unchanged.