FlyBoeingJets
YES, that's NICE
- Joined
- Mar 20, 2003
- Posts
- 1,802
I hate to break it to you guys but the EMB and the 717 are not going to fill the role of the RJ. They will do mainline type flying. After all, it works great for Airtran.
The market has changed and it is harder to fill a 150+ aircraft unless you are in certain markets. The cost savings of a 100-130 seat aircraft are significant and smart people are trying to exploit that fact. Domestic capacity has seen growth equal to 6 ATA's and yields have, once again, come down. We need to fight back.
Southwest made about $2.50 of profit per passenger a quarter or two ago. 2.5 passengers per SWA flight meant the difference between a profit and a loss.
Smaller narrow bodies are the ones making money in the most markets, not the 175+ ones on routes that continue to get more competitive. Don't get me wrong, the 737-800 is still a good way to go, but lets put it only on the routes that will work for it. The others should get different size aircraft (717 or 757). If we do it right, it will work wonders.
We are losing money by not being able to get as high a RASM as SWA. I'm betting our quarterly report will show that...AGAIN. We have to get an advantage to offset the debt burden. We need to shake things up. Will it be pay reductions or aircraft changes? Or both? I vote for the flexibility of more types of aircraft. I want the 717 on the property.
We could also use another hub that doesn't go head to head with SWA. I can appreciate the apprehension of making such a big change at ATA, but unless we change the future looks murky to me. If we don't act soon the opportunity may slip by.
The market has changed and it is harder to fill a 150+ aircraft unless you are in certain markets. The cost savings of a 100-130 seat aircraft are significant and smart people are trying to exploit that fact. Domestic capacity has seen growth equal to 6 ATA's and yields have, once again, come down. We need to fight back.
Southwest made about $2.50 of profit per passenger a quarter or two ago. 2.5 passengers per SWA flight meant the difference between a profit and a loss.
Smaller narrow bodies are the ones making money in the most markets, not the 175+ ones on routes that continue to get more competitive. Don't get me wrong, the 737-800 is still a good way to go, but lets put it only on the routes that will work for it. The others should get different size aircraft (717 or 757). If we do it right, it will work wonders.
We are losing money by not being able to get as high a RASM as SWA. I'm betting our quarterly report will show that...AGAIN. We have to get an advantage to offset the debt burden. We need to shake things up. Will it be pay reductions or aircraft changes? Or both? I vote for the flexibility of more types of aircraft. I want the 717 on the property.
We could also use another hub that doesn't go head to head with SWA. I can appreciate the apprehension of making such a big change at ATA, but unless we change the future looks murky to me. If we don't act soon the opportunity may slip by.
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