Originally Posted by
BobSacamano
if you don’t understand SLB profits and how incredibly important they are to F9, you really need to head over to the Frontier Investor Relations page or somewhere else to read up on that. Kirby blames us for over-supplying capacity, but he doesn’t mention the fact that we have to keep taking these planes because the operation is not independently profitable without SLB.
The idea is to keep the operation profitable or near profitable with these SLB profits until F9 has the scale to be profitable without SLB profits. At least that’s my understanding.
I would agree, or at least hope, that the end game is that we tread water until we hit a certain scale where the profits start coming in.
I do often wonder where the gates will come from. But I agree that there must be a plan in place that when we hit X size, the profits start coming in. Our CASM is probably a big part of it. We can probably handle some amount of hit with the increasing capacity vs the higher cost legacies. I find the business side of things interesting.. Though none of us have the complete picture.