Originally Posted by
capncrunch
Did you notice in his letter how he managed to discount SWA all while putting gloom into the picture. Good stuff.
When I read stuff like that I wonder what the writers incentive is for setting the bar low and managing expectations.
Plus the analogy was a bit flawed. Rather than each airline owning a single house, each one has hundreds of houses. DL is busy tearing houses down to help the entire housing sector. At the same time, other developers are building houses and adding capacity. But we are able to tear homes down faster than new ones can be built, so we are seeing positive pressure on prices. That is quarterly report genius, but its completely unsustainable.
At some point, we are going to have to start building homes again or we will get our clock cleaned by the other builders with lower building costs because of growth while we stagnate with blocks full of inneficient, high maintenence homes built in the 80's.