Originally Posted by
TRZ06
Not only are there too many hubs, we actually have a surplus of wide bodies. While we need long haul replacements for our thinner routes currently using the 757/767 fleet (which is falling apart), we have an abundance of 772s that they will place on Europe flying this spring. Way more capacity pax and cargo then is needed, versus a 764 or 332 that the other carriers are using. Meanwhile, even with the olympics approaching, the south american economy is killing the load factors.
Bottom line, probably see more consolidation at the international level anyway. Thank goodness for cheap oil to offset some of this, but still, something has got to give.
Step 1 -- Begin parking "older, less-efficient" aircraft on South American routes (without ordering a comparable replacement).
Step 2 -- Announce a new Joint Venture with a large South American firm...
Step 3 -- Begin replacing the longer routes with the new J/V partner, as we do not have anything to fly them, very slowly (like heating up the pot of water the frog swims in).
Step 4 -- Continue bragging to employees and customers about having the "youngest fleet" in the industry, as the "old" planes go away.
Step 5 -- Eventually, costs are reduced and risk is transferred to the partner, with no major pushback from employees, as a large chunk of the South American flying has been given to less expensive "partners" while still "serving" all those markets (plus hundreds more -- yay!!!!).
Step 6 -- Rake in the profits. And start looking at how to launch more "joint ventures" in Europe and Asia.....