Originally Posted by
BeatNavy
Increasing legacy CASM? Haven’t all legacies reduced structural costs? Maybe you mean driving down their RASM?
When you have widebodies that are underutilized but you are still paying debt service on them your overall CASM has got to go up. Although it would be much worse if Uncle Sam wasn’t covering personnel costs. And with interest rates starting to go up, each tranche of bonds that has to be refinanced at the higher rate will drive it even higher. In the interim, you are paying to park those depreciating assets.