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Old 10-04-2011 | 01:33 PM
  #77346  
johnso29
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Joined: Oct 2006
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From: B757/767
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Originally Posted by georgetg
I know you know this Johnso but full planes are no accurate reflection on capacity...

There never has been over or under capacity, just under revenue.
Unfortunately if you cut capacity to fix revenue you end up in a zero-sum game: A low margin business with reduced volume (capacity) means already low margin is further reduced.

For contract time we will hear all about how CASM is up, RASM is down, etc.

Let's keep in mind the DAL pilot portion of CASM is 30% less than the WN pilot portion of CASM. Pilot pay is not what is driving up cost...

Cheers
George
With system wide capacity down & ticket prices staying high, I believe capacity discipline can increase profits. Isn't it supply & demand?