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Old 06-06-2014 | 09:03 AM
  #159529  
orvil
Gets Weekends Off
 
Joined: Oct 2010
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From: Decoupled
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Originally Posted by sailingfun
Just a point on trainer. Management has promised it will turn a profit next quarter every quarter. So far their predictions have been wrong. The 10 cent per gallon fuel savings applies to all jet fuel in the NE. The production at trainer has pushed the price down for everyone. Sadly that gives us no competitive advantage as all airlines are enjoying that 10 cent reduction. We have however shouldered over half a billion in costs to cut the price for everyone and taken on a long term potentially very costly EPA liability.
The acquisition does guarantee first access to supply. That doesn't necessarily help the bottom line, but security of supply has to be worth something. I think that was one of the driving forces for the acquisition.