AZFlyer

Thanks for finding the 2007 data, Daniel.

I don't have it in me to go look up fuel vs. labor costs for other airlines, but I would think that AMR is in the minority of companies whose labor costs still exceeds fuel. Also, I am going to surmise that its only been in probably the last year, maybe two years, that fuel costs has exceeded labor costs for those airlines that are in that circumstance. Generally speaking, of course.

flaps 9

Dutta was never a CEO.

He was President under Goodwin and Creighton.

Dutta left when Tilton became CEO in 2002.

MoneyMan

Fact: FedEx is the only major cargo carrier without 747s on property or on order.
Fact: Fred Smith said you can't make money with 747s.
I heard also that he said the only chance of FedEx flying 747s would be over his dead body. He doesn't like Boeing (well-known) and doesn't want 747s.

I'm sure the equation has changed today because of the price of fuel, but that was not a factor years ago when everyone was ordering the 747s (-400F, -8s).

Side note: FedEx has several fuel scenarios ($3.50/gallon and $5.00/gallon being the major ones). They said that if it gets within this range, they are seriously considering mothballing all 727s within 2 years and using remaining aircraft to deliver packages. I guess the software says that with multiple legs on the MD10s and Airbus they can get to 98% of the places with existing planes until the 757s can fill in the gaps. I'm sure the "optimizer" is being used to construct the schedules. Feeder aircraft can be used for the 2%.

Daniel Larusso

Now there's a fat and certainly plausible rumor with petro prices through the roof with no sign of abating and the summer high season for prices looming. I'm sure someone will come in and spin this a little more positively than me. Also, something tells me that another FDA 'showdown' is coming later this year where the NC/MEC strategy of just getting the flying and improving the deal later will be seriously exposed(buy low, sell lower).