Originally Posted by
Barley
CASM is not the end-all be-all competitive advantage ULCC leaders would have you believe. Driving CASM into the ground is not how big airlines actually create and sustain their success. UAL's loyalty program alone is worth more than 4 times the combined market cap of NK & F9.
While not the end-all be-all, wasn’t reducing CASM a significant driver behind UAL’s huge narrowbody order?
I get it—UAL would be unwise to try to compete with ULCCs purely on cost—but as I understand it Kirby has placed more emphasis on getting CASM down. I reckon this is a good news story for UAL’s long-term health.