Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Jamie Baker – JPMorgan.
Jamie Baker – JPMorgan
I was thanking Scott for providing an uncharacteristic level of detail on RASM. I do want to circle back on that topic. I am just trying to reconcile your RASM performance domestically with that of Southwest whose RASM has turned positive year-over-year in September and October. I realize we are discussing US Airways here but given all the domestic overlap with Southwest I am tempted to believe you might be sacrificing RASM to them with your bag policies. Any thoughts on this?
Scott Kirby
Sure. One, I think Southwest did have a fantastic result in September and a huge credit to them. One, I think they are doing a better job at revenue management in the last couple of years than they historically did and you are starting to see that in their results. I think September was more of an outlier and if you adjust for capacity that explains most of Southwest’s acceleration in September versus the rest of the industry.
Last year’s September for them was weak relative to the industry. This year they have a much better capacity comparison with Southwest moving down about 8% in September and last year they were up. The rest of us had our capacity cut in the prior year. I think if you go look at it on a 2-year basis or look at it adjusted for the sequential change in capacity it is still a good result but a much closer result in terms of what is happening at Southwest versus us or any other airline.
Operator
The next question comes from the line of Mike Linenberg – Bank of America.
Mike Linenberg – Bank of America
On the E190, the $35 million loan from Republic, I saw the press release, I don’t recall seeing the entire consideration. Can you provide that or is that confidential?
Doug Parker
The entire consideration for the deal?
Mike Linenberg – Bank of America
For the 190’s.
Doug Parker
Taking out $218 million debt and the entire consideration above the 35 was about $3 million more so there was $3 million in cash to us and then the 35 on a loan that was due in 2010 and 2011. Then they take over the aircraft and all of the debt on the aircraft.
Operator
The next question comes from the line of William Greene – Morgan Stanley.
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