Originally Posted by
yellowfever
Not sure SkyWest really has the lowest operating cost. Look at reported profit margins in 06. Still my opinion that your ATL base will grow less than SkyWest management wanted and as a result the upgrades wouldn't come as fast. [/FONT]
Profit margins show the %age between cost and revenue. Those who have higher fees for departure will have higher profit margins, most of the time. DAL flying 3 years ago had higher profit margins than DAL flying of today. SKW's has more flying at lower fees for departure than ASA seeing that SKW was been awarded new flying during more competitive times.
I don't think you understand. Our ATL base has already grown as far as DAL has contracted us to. During peak seasons we currently have around 50 lines and off peak around 40 lines of flying. All of our "growth" in ALT was CR9 flying and we’ve received all the CR9's we’re contracted to fly for DAL; also we have no more CR9's on order. So how can our ATL base continue to grow if it's only contracted to be as large as it currently is?
As I've said, our upgrades will be completely unaffected by both ASA's possible new TA and our ATL base.
So understand this, we have no more growth on the books for the future other than the possibility of 10 more a/c for Midwest.