Originally Posted by
flyallnite
I was very surprised to hear that Istanbul has been dropped. SD said the yields are too low despite high load factors. We recently up gauged the service and have served the market for 20 years. The Turkish economy is a bright spot in Europe. It would have been more accurate to say that Turkish Air chased us out with their recent expansion. Just like Air Berlin did.
And ATH (Greek economy blah blah blah, but loads are through the roof and the belly full of as much cargo as we can carry, all day every day) and FCO (although its still served by our "partner" twice a day so its all good).
He also mentioned how Cathay and others chased us out of some markets indirectly by barfing capacity all over the place. Well if thats our stratedgy we're in for heap big trouble because the foreign EGO Howard Hughes wanna be "Heros of Farnsborough" and their Keynesian fantasy order books are going to drive us out of many, many, many more markets if our pavlovian response is to gift them capacity to keep yields up while we shrink to profitability forever. Even if we somehow manage a different stratedgy domestically against the LCC's and their massive all growth order books (which we probably will) we're on a clearly unsustainable trajectory long term.
How and when (and if) we will change is the question. Particularly when facing reality will mean hitting the quarterly magic in a negative way for a while. Or we can perpetually shrink "just this one more time" and huff off the 10K bong once more as we throw the sofa cushions into the fireplace to stay warm.