Thread: Attrition
View Single Post
Old 02-04-2022 | 04:51 PM
  #674  
FlyGuy2002
Line Holder
 
Joined: May 2015
Posts: 490
Likes: 41
Default

I think economies of scale for sure . I’m making up numbers here but let’s say you have 2 C-suites each with $5 million pay roll .. that’s $10 million for 2 companies, combine it and you let’s say have 1 C suite salary package of $7 million. That’s savings. Let’s Say you use the exact same numbers for training centers and corporate headquarters costing 10 million individually annually.. and having just one of each at 7 million annually more savings.. the list goes on and on. Not to mention the fleet usage.. let’s say we have one plane start the day in Denver and it goes DEN-IAH-FLL-LAS. Perhaps with more planes and more cities one plane can start in SFO (which we don’t serve) with a stop in vegas then head to Denver to resume the schedule. More utilization. Not to mention its easier to recruit the bigger you are , pay more the bigger you are, strike deals with airport authorities the bigger you are .. so on and so forth. Also in terms of actual dollars would you have more money in your pocket if you had a 15% profit margin off a billion in revenue or 10% margin of 2 billion of revenue? The latter actually puts more cash in your pocket. I’ve been a big believer that it’s only matter of time Before we marry F9. I’ve been wrong before so we’ll see . And one little tiny coincidence F9 lowered their bag weight limit today to 40 pounds. Any guess what airline also limits it to 40 pounds?
Reply