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Old 03-18-2011 | 07:19 AM
  #62121  
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Originally Posted by acl65pilot
They are not the darlings they once were. It is a fine line. With any company many of your costs are fixed, and it makes sense to spread them out over more products. When you reduce capacity, you have fewer products in which to spread these fixed costs out over. In our case that raises CASM. Yes, RASM can increase to a point. It is a fine line, at some point your RASM jump does not cover the CASM jump, hence the phrase, "You cannot shrink to profitability."

SWA has been able to constantly spread their higher costs over more seats, and that is why that up to a few years ago, they were able to look really good on paper. They still are very well run, but absent taking over the international market, they are capped out with regard to their old model. IMO, they realize this, and that is why they bought ATN.
Sure, I see that and you see that and our management understands that: but is there too much pressure from the analysts for capacity control? I see the pressure to reduce debt, and that is very good - it helps lower our costs.

I guess I see the discussion with the analysts a bit of theater, where we say we're going reduce capacity, and we can point to some reduction, but we don't really. It is in the company's best interest is to upgauge rather than lower capacity, from what I can see. A 757 is a better plane to compete with a 320/737 from a Low Cost Carrier, rather than using a MD88. Lower seat miles, etc. Bigger airplanes does make the pilot force happier, as long as we're not parking smaller planes. (I know that doesn't make sense, but we should use those MD88s on markets that were previously RJs or DC9, etc)
Old 03-18-2011 | 07:20 AM
  #62122  
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Don't know if you have seen this, but it will make our interport ops more difficult.

Japan?s Airports Have Sufficient Jet Fuel for 10 Days, IATA Says - Bloomberg
Old 03-18-2011 | 07:21 AM
  #62123  
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Originally Posted by Columbia
agreed-
FlightAware > Live Emirates Flight Status
5 flights (1100 EST) all to/from DXB - US. It's only going to grow.
And with a honestly a better product.
Old 03-18-2011 | 07:37 AM
  #62124  
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Originally Posted by Sink r8





...of course, "safe paths" would mean routes that effectively avoid any radiation, hotels in the right locations, and planes on the ground ready to move people. Not putting some b.s. video in your v-file about "radiation and you", along the lines of that useless "malaria and you" stuff we get for Africa.
Sink,

I agree with everything you say above and we should definitely try to absolutely minimize the radiation exposure. With that said I think the radiation threat is being hyped and sensationalized.

Did we not blow up Atomic bombs in Nevada in the 1940's and 1950's?

I don't think people on the east coast were much affected by radiation.

Did we not blow up Hydrogen Bombs in the pacific in the 1950's?

I don't think people on the California coast were much affected by radiation.

And I am talking about surface testing on the ground and in lagoons.

There is definitely a very real threat, but exaggerating it and causing people thousands on miles away to worry uneccesarily does not do anyone any good. For example, my mother called and said she saw on the news that the radiation will reach California today and that I should stay indoors. Really? Thank you 24 hour news cycle!

Scoop - Throwing caution to the wind and going on a bike ride along the California coast!

Last edited by Scoop; 03-18-2011 at 08:04 AM.
Old 03-18-2011 | 07:46 AM
  #62125  
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Not disagreeing with you, however the general populous did not know that much about the latent radiation dangers in the 40s and 50s.
Old 03-18-2011 | 07:52 AM
  #62126  
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Both above posts make sense. I don't know how to define "safe" in this case, but I'm only distinguishing "reasonably safe" from "wishful-thinking safe". I'm not promoting a "paranoid-freak" level of safety.

Just don't forget to shower thrice after the bike ride, Scoop. And shave your head, and burn the hair.
Old 03-18-2011 | 08:05 AM
  #62127  
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Originally Posted by acl65pilot
RJ's can give market presense which was the choice de jour about a decade ago, but with fuel where it is the margin is horrible.
RJ's kill a market. Customers have a bad experience and blame it on Delta, the company from whom they bought the ticket. We lose customers to competitors like SWA. And then when we try to put mainline back in, we've already run off a whole bunch of customers. This is the part the bean counters don't seem to know how to quantify. And they're too stuck in the world of their cubicle to figure it out.
Old 03-18-2011 | 08:07 AM
  #62128  
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Originally Posted by UncleSam
Don't know if you have seen this, but it will make our interport ops more difficult.

Japan?s Airports Have Sufficient Jet Fuel for 10 Days, IATA Says - Bloomberg
I did. I assume they will ship some over from Korea.
Old 03-18-2011 | 08:13 AM
  #62129  
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Originally Posted by DAL 88 Driver
RJ's kill a market. Customers have a bad experience and blame it on Delta, the company from whom they bought the ticket. We lose customers to competitors like SWA. And then when we try to put mainline back in, we've already run off a whole bunch of customers. This is the part the bean counters don't seem to know how to quantify. And they're too stuck in the world of their cubicle to figure it out.

DAL88, I agree the premise on which they grew was based on incorrect assumptions. Basing it on the fact that frequency with reduced capacity would allow the RASM and margins to rise was all well and good, but they forgot two things; customer sanctification, the response of all of the other airlines. Market shares remained the same, other airlines acted in kind, and the markets were flooded with frequency on a higher cost jets. The ticket price increases never materialized.

My comment was more TIC, but the fact is a small jet works as long as no other airline responds in kind. As we know, that ain't going to happen. (It does work for DAL in many small southern markets where they are the only game in town, but not many)

Also, it is not just RJ to mainline, it can be mainline to mainline as well. I have heard some very interesting comments from passengers flying the 767 on these Transpac's.
Old 03-18-2011 | 08:14 AM
  #62130  
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Awesome!

Watch what Airlines app is being bypassed for the Delta app =)




YouTube - Apple - iPhone 4 - TV Ad - App Store

Cheers
George
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