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Old 09-18-2011 | 04:13 PM
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Joined: Apr 2008
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From: Light Chop
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Originally Posted by Bucking Bar
Delta's course concerns me. As it shrinks, costs will increase & revenue base decrease. As costs increase, it will wish to outsource. While saying we are in "Comair mode" is an exaggeration, the pattern is the same. In the second quarter comparison, Delta's non fuel cost per seat mile was up nearly 5%, compared to the next highest 3% at United. Airlines that aren't shrinking are keeping their non fuel CASM increase below 1%.

Also, as we shrink we cede market to our competitors.

History shows, airlines do not shrink to profitability. Bastian told investors our early retirements and other measures will help reduce costs to 2010 levels. I'll go on record now and state, I doubt that will happen.
Shrink to merge?