Originally Posted by
OTZeagle1
I will make this really simple:
Alaska made 8,781,000,000 in 2019
If revenue returns at 70%, that means AS has a 6,147,000,000 dollar pile of money for 2021.
The costs to run our full operation are about 7,718,000,000, that means we would be short or lose (1,571,000,000) for the year. That would not work.
If we reduce our operating costs by 20%, our expenses will be roughly, 6,174,000,000
70 % 2919 revenue 6,147,000,000
Minus 80% 2019 costs -6,174,000,000
Equals a survivable negative number (27,000,000)
We are not Southwest, we do not have Southwest cost structure. We are determined to survive this and take advantage on the backside. We are not looking to become one of the big 4, we are about responsibly growing our brand.
With all due respect I haven’t seen much meaningful growing of the brand anywhere outside Seattle even before the virus sent things south. It seems there strategy even before all this was to consolidate into Seattle as much as possible and leave some token regional service in California.
Southwest might well be targeting AA, but I wouldn’t be surprised to see them take a good percentage of our Hawaii market share(once Hawaii opens again), In the meantime we’ll be sitting around with hundreds of furloughs and airplanes parked with no way to react quickly enough.