I'm doing research on a case involving United Airlines trying to build a new hangar at Newark International Airport, and being extorted by the chairman of the Port Authority. He demanded an unprofitable, bi-weekly custom flight route in exchange for his approval.

As a small but important detail of my research, I'm trying to determine how much an airline can save by building a new hangar at a major airport.

I believe the primary benefit of a new hangar is the ability to do repairs and maintenance locally, instead of having to fly the plane elsewhere to do it. Is this true?

What expenses, roughly speaking, does a new hangar of this sort save a major airline each year (or longer period)? Sources would be appreciated. So far I've only found information on the benefits to private plane owners in using or renting hangars.

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    $\begingroup$ This would be highly specific to a certain airline's operations, and even limiting to the case of United at Newark the relevant financial information is probably not public. $\endgroup$ – fooot Nov 6 '17 at 19:00
  • $\begingroup$ Does it save them anything? Seems like a cost center to me, just one that's necessary to operations. $\endgroup$ – hobbs Nov 6 '17 at 19:26
  • $\begingroup$ @hobbs Why not? Just ferrying an airplane to another station is going to cost direct costs easily $5k-10k/flight hour, and costs of more downtime. Plus, what happens when a failure puts an plane in an unairworthy state? There's some balance involved. $\endgroup$ – user71659 Nov 6 '17 at 22:20
  • $\begingroup$ @user71659, the airline is not going to ferry anything anywhere, they are simply going to organise their flights so the plane ends up in suitable place when it needs scheduled maintenance. So building a hangar at new airport does not really save money. What it does is allow better service at that airport. $\endgroup$ – Jan Hudec Nov 7 '17 at 20:45
  • $\begingroup$ Why on Earth would you call it “extortion”? It sounds like a normal business negotiation. The airport sets its price for selling or renting the space for a hangar and the airline can take it or let it be. And it even makes sense to demand opening some new connections, because opening new connections is what airline needs hangar for—current operation is doing ok with existing maintenance and new hangar is unlikely to help there. So it's not extortion. $\endgroup$ – Jan Hudec Nov 7 '17 at 21:33

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