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Old 05-22-2020 | 06:45 AM
  #244  
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Excargodog
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Originally Posted by sanicom3205
I don't know it 10% reduction equals bankruptcy. It definitely means they will stop hiring and "right size". Whether not bringing in new hires in combination with retirements is enough to get to that proper size depends on which company we are talking about.
Probably not, but it does make a fairly significant difference in overall competitiveness of companies based on different business models. A permanent reduction of 10% would be very significant to the companies like AA, UAL, and DAL, (And to a lesser extent AS) which compete for that relatively small but extremely lucrative segment of the flying public. Others, like SWA, NK, F9, and the soon-to-be flying Breeze would be little affected by it. In fact, numerous aviation economists expect the latter group to do better (relatively speaking) in at least the immediate post COVID period in garnering an increased market share of the domestic flying anyway. Losing 10% of their highest profit passengers woukd likely aggravate that even further.
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