Originally Posted by
Dr Pepper
Agreed. Perhaps crap was not the best word, I should have used inferior.
Saying inferior or crap I'm not being negative, its just part of the model.
If everyone could put out a VA type product at our CASM they would.
I'm not saying the sky is falling or we are going out of business. My concern is that during the earnings call they are saying not to worry about negative RASM because our CASM is falling faster. At some point CASM will stop declining (new contract?) and we will have to figure out a way to increase revenue if oil remains low for an extended period.
How does the increase in 178 seaters effect casm/RASM? I would guess that we are putting more seats in a market for a only slightly higher cost thus decreasing casm but it, at least initially as new markets emerge and older ones mature, means lower loads thus reduced RASM.
Seems like a non issue to me