Originally Posted by
full of luv
Right now NK mgmt seems to have y'all focused on using your "cheap costs" to grow ever larger, hopefully you'll be as proud of the destination as a place to work as mgmt will be in manipulating you to get there.
I'm not sure how much you follow our metrics or our management, so I'll keep it brief. Managements laser-like focus on costs is not for growing the airline, it's to keep our planes full which increases our profit (remember, over 40% of our revenue comes from non-ticket related items). The more full the plane, the higher our non-ticket revenue is (increases profit). Keeping costs down should be the goal of all airline managements, so I don't know why you're singling out NKS...
The markets we serve, and are growing into, stimulate their own demand. In each city pair we add service, passenger traffic grows nearly equally to the amount of service we add. We're not robbing passengers from AA or Delta (in fact, the opposite is what's happening). The difference is we can do it more profitably than they can (look at profit margins) now, and when oil returns to a higher level, they'll be doing it at a loss. People have the misconception that we steal everyone else's passengers, and the numbers point out that it's just patently false. Our passengers tend to think of flying for a vacation as purchase right up there with buying an appliance (they're big ticket purchases that they are using their discretionary income for). It's not that they will fly, they'll either not go, or if they do go, it'll likely be the cheapest option...
Hope this helped explain a few things. So much for brief!!