Food For Thought: An Exclusively WO Future?
05-08-2018 | 11:00 AM
#21
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If that were true there wouldn't be scope clauses.
05-08-2018 | 11:04 AM
#22
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https://imgur.com/dMynT33
05-08-2018 | 11:29 AM
#24
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If there’s a market that supports 40 seats/flight and revenue/flight exceeds cost/flight it’s a winner. CASM is a useful metric but it’s not particularly helpful for deciding where to stop service at the margins. That last crj flight may be profitable where a 737 wouldn’t be.
05-08-2018 | 11:49 AM
#25
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If there’s a market that supports 40 seats/flight and revenue/flight exceeds cost/flight it’s a winner. CASM is a useful metric but it’s not particularly helpful for deciding where to stop service at the margins. That last crj flight may be profitable where a 737 wouldn’t be.
Salaries, Benefits, Fuel Cost and hence Taxes are bound to be lower.
Now, RASM and net profit are a different story. It does get more complicated.
05-08-2018 | 11:57 AM
#26
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See the AA SEC filing. mainline CASM is about 10 cents, regional is 16.
If you only have 40 customers, it's still cheaper to fly a 60 seat plane at 0.16/ASM than a 120 seat plane at 0.10/ASM.
05-08-2018 | 12:44 PM
#29
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You got it completely backwards.
Three CRJ200s move the same amount of people as one A320. What costs more to move the same amount of people around? The one A320 or three CRJ200s? The one A320 is obviously cheaper.
I don't think you understand the meaning of CASM - seat for seat and mile for mile.
05-08-2018 | 02:19 PM
#30
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Food For Thought: An Exclusively WO Future?
RJ have a higher CASM in general in comparison to mainline a/c due to amount of seats which costs can be spread across. The kicker is can the airline a achieve RASM that equal to/greater than the CASM for a particular flight. RASM =/> CASM means the flight will break even or make a profit.
There many more variables with running RJ vs mainline on particular routes. But it is IMHO that it would be cheaper for mainline to absorb all regional flying to achieve synergy from top down.
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There many more variables with running RJ vs mainline on particular routes. But it is IMHO that it would be cheaper for mainline to absorb all regional flying to achieve synergy from top down.
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