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Future Of Nwa?????

  • Thread starter Thread starter N813CA
  • Start date Start date
  • Watchers Watchers 25

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The future of any airline this year is not good. Already we are seeing soft bookings resulting in decreased load factors. International traffic is also modestly slowing down. This will result in consolidation and smaller airplanes.

It's not about load factor, but yields. Obviously you increase yield by flying a full plane, which on the surface means matching the proper gage to the route. With decreasing loads that would suggest smaller airplanes, however this offset by the huge increase in CASM/RASM for SJ and RJ's, exacerbated further by higher fuel costs. Too much shift to smaller acft also reduces flexibility and yields when load factors increase.

The smart money is on reduced frequency with larger aircraft......
 
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