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Originally Posted by Bucking Bar
(Post 991113)
Don't forget, CAPEX, is CAPEX. The acquisition of the MD90's was only about half the expense of getting them into service. They are much larger units of capacity at a time when we are pulling down capacity. We need to keep revenue per seat mile UP, not only for our bottom line, but to improve market perceptions of our network's pricing power. Replacing DC9's with 50% more capacity in markets will result in RASM reductions as we cut prices to fill seats.
We need something in the sweet spot of 100 to 130 pax with a 100 seat cost footprint. The E175 is a lot closer to meeting that need than an MD90, with the added benefit of outsourcing the CAPEX off our balance sheet. Wall St. seems to think anything outsourced is cheaper, regardless of whether it is true or not. (one unused resource available to ALPA is running and publishing our own analysis of the costs of outsourced flying and changing perceptions that we're just too darned expensive to perform the work we perform) Hence the reason they keep saying "we hate RJ's" but keep signing contracts for more of the "RJ's" that offer mainline type amenities. Aircraft that are running about 10 mil a copy to get on line are still far cheaper than a 170/75. I see the added RJ contracts as two fold. One, they want the lift for LGA, and two it is replacing the DC-9's. If they opt to keep the 9's then it is good for everyone. DAL is still taking these MD-90's and still moding them. Of course some of the higher configured 90's has not been as warmly received by our passengers. If you look at our passengers carried, and our elasticity to our pricing, you will see that we are doing quite well. Load Factor dropped an that is indicative of adding too much capacity too quick, but I venture to bet, that the modeling for this fall is not as precise as our executives are letting the financial world think. Our demand is high, and our ticket prices are still at the support level. Until that changes, I bet we are in a wait and see mode. We will pull down if needed, but opt out and rather quickly if there appears to moderate support for the lift. I will say it has been nice having a few seats open to non-rev around on. It has been a welcomed change. (on this note also realize that slight over capacity is probably preferred to the penalties the US Government just levied on the airlines for involuntarily denied boardings) |
Originally Posted by iceman49
(Post 991118)
You have to ask if we do put a 320 base in ATL, what are we pulling out? There is only so much we can put in a capacity constrained airport and expect to have any kind of sked integrity. That would be great to hire more, maybe for the rest rules.
Same with the A330. Remember the pulled half of the 767-400 time out of ATL... then replaced that with flying done by other bases. The seniority backslide since that in ATL has been brutal. |
Originally Posted by 80ktsClamp
(Post 991235)
It would just be opening a base there with the amount of bus flying that already passes through. I assume "time" would be pulled from MEM and/or DTW and/or MSP.
Same with the A330. Remember the pulled half of the 767-400 time out of ATL... then replaced that with flying done by other bases. The seniority backslide since that in ATL has been brutal. |
Anybody seen Carl? Maybe this will pull him out of the woodwork:
http://chzmemeafterdark.files.wordpr...es-it-work.gif |
I think Carl is at home debating taking the early out. :D
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Oil is back up another $5 today.......:confused:
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Originally Posted by 80ktsClamp
(Post 991255)
Anybody seen Carl? Maybe this will pull him out of the woodwork:
http://chzmemeafterdark.files.wordpr...es-it-work.gif Everytime I try to get out....Clamp just PULLS ME BACK IN!!! Carl |
Originally Posted by Carl Spackler
(Post 991293)
Everytime I try to get out....Clamp just PULLS ME BACK IN!!!
Carl |
Originally Posted by 80ktsClamp
(Post 991255)
Anybody seen Carl? Maybe this will pull him out of the woodwork:
http://chzmemeafterdark.files.wordpr...es-it-work.gif Where is the rest of the movie where gravity pulls those pants to the floor, followed by that lovely top and those matching p......... p.s. love the tramp stamp. |
Originally Posted by 80ktsClamp
(Post 991255)
Anybody seen Carl? Maybe this will pull him out of the woodwork:
http://chzmemeafterdark.files.wordpr...es-it-work.gif Well that's just great... three hours of my life I'll never get back. |
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