Delta vs ASA

[suupah]

pilot unity accross company lines. a new organization.....not ALPA

every revolution costs blood, but later it is always much better. if we all walk off the job, see how long this country works without us.

 

[benjakes]

Benjakes-

Your assessment of the Law of Supply and Demand does not consider the many willing and able to fill in the loss on the supply side. If Delta goes out, Virgin America is sure to act as are JetBlue and AirTran. Supply and Demand does not exist in a vacuum and the low cost carriers must be considered as readily availble potential supply, which would have less affect on demand than you hold true.

Otherwise, you're dead to nuts right!

Drunk, you are right! I considered this a few ways, but don't have the answer.

Assumption #1- The larger airlines have more available resources in empty seats,airplanes, and underutilized employees as well as logistics to respond quicker? Is this true?

Assumpion #2-The business model of the Jet Blue's and the Airtran's is based upon a discrepentcy existing between what thier pilots make, and the Legacy's. If you force up JB/A cost (erode margin), you reduce the effectiveness of the business plan faster.

Assumption 3-Fill in the blank. I am sure I am missing much, but enjoy the mental banter....

 

[DrunkIrishman]

Benjakes-

The difference in seat costs at a legacy is going to be different from the LCC's because the LCC's keep buying new equipment and adding new employees; whereas, legacy carriers recall furloughed employees and pull airplanes out of the desert.

Keeping fixed costs relatively stable, since it already costs money to operate, there would be a decrease in the cost to operate at the LCC'c versus the Legacies. Therefore, the more the LCC's grow, the cheaper they can become. This is why we see SWA continuing to grow their way to black numbers. Take away their growth and they would be in the red even with their fuel hedges.

 

[benjakes]

General Lee,

Would you accept your bretheren from Comair into Delta so that you could have one list? If not, why not?