Originally Posted by
USMCv22
Yeah I think he’s talking about “break even” on the micro level, or break even to add a single flight right now in the current fiscal environment, which does not including fixed costs (such as labor). Just enough not “lose” money on that flight on variable costs. Gross margins are calculated on the macro level and include all variable AND fixed costs (i.e. labor) and everything else. So, BLOB, very different concepts with vastly different inputs, so no reason to distrust Vasu on this when he is speaking in terms of network planning theories.
Sent from my iPhone using Tapatalk
yeah that’s what I was thinking as well just didn’t have exact terms to explain my point so I didn’t want to start typing away. I thought Vasu could have done a better job explaining this because it feeds into the general public sentiment that they “pay” too much for flights already. Not good PR.