Originally Posted by
Sink r8
Thanks George,
I didn't realize another probe was ongoing for STAR.
Come to think of it, we've reduced VERY aggressively on some routes, which caused yields to rise fairly dramatically (the call said +17% across the Atlantic). Maybe we're squeezing the goose a little tight by reducing offerings a little too much.
I don't understand your last statement. If AF/KLM is not profitable, it's because of their entire network. Presumably we're both doing equally well/poorly across the Atlantic. Why mess with it?
We're not. Delta has been significantly more aggressive in the pull down than AFKLM. That's why our production balance is below the share we had when Alitalia was added.
AirFranceKLM is still quoting Atlantic traffic up 9% capacity up 6.7% driven mainly by South America.
For the same time period, Delta Americas traffic is down 3.7% and capacity down 5%.
The profit sharing of the JV is on the shared route network only. The technical terms are Bundle 1 and Bundle 2 flying... IIRC Bundle 1 flying profit is shared 50/50 while bundle 2 flying gets the other side a 25% cut...
Cheers
George