HalinTexas
昇る太陽の土&#
- Joined
- Feb 14, 2004
- Posts
- 1,536
I think you missed his point, he says that they are profitable within the larger context of the network. They replaced unprofitable 737s with profitable CRJ-700s.
So you're (and he) saying only in a network can they be profitable? While it's been proven, and previously said, that B737s (and the equivalents) can be profitable without 50 or 70 seat jets. I may be wrong, but the manufacturers are still making, accepting orders for 737s and A320s while the 50 seat market is dead. There must be a reason for this.
Eventually, that "network model" can/will be unprofitable.
He's using flawed metrics. He's assuming every seat is sold at the same price generating the same yield. Likewise, he thinks costs are fixed. Yes, there is a point when replacing old B737's (-300's) with new E170's and the like will change the margin. However, those 70 seaters can become money pits as well. Under the right network, any series 737 can be as profitable or more so, than a 70-seat jet.