dojetdriver
Well-known member
- Joined
- Oct 29, 2004
- Posts
- 1,998
That's the problem, what you see in the quartely reports are averages at the legacies. They take all their CASM and average them together. At NWA the CASM spread looks like this international is running about 20 cents a mile domestic is about 8.5 cents a mile, and regional is about 15.5 cents per mile. When put together it's about 11 cents a mile for the entire operation. SWA has only one CASM that is about 8.0 cents. When SWA fuel hedges run out it will go up to about 9.5 cents a mile. So at NWA the competeing seat will be about 1 cent lower per mile 11% lower than SWA. When you consider that SWA has such an absolutely lean operation, the only place the can get cuts is in the employee area. SWA employee costs are 3.14 cents a mile and NWA is 2.12 cents a mile. So for SWA to get an exact match of the CASM it would need to reduce the CASM by 1 cent per mile. A 33% reduction for all employees, but since that would be too much for some employee groups more would have to be taken from the pilots.
Furthermore, NWA will be offering additional service on domestic flights because of the higher RPM on the international routes. So not only will SWA be more expensive, it will offer less service. This is all compliments of the United States bankruptcy law.
Out of curiosity, where are all the ASM costs published?