Lear70
JAFFO
- Joined
- Oct 17, 2003
- Posts
- 7,487
Depends. There's a LOT more to it than just the number of seats. Yield is determined by a lot of factors; most specifically, for this discussion, stage length.OK, but have a coupla questions:
1) Which makes more money, a full 86 seater or a full 717?
A 717 running full with 117 people on a 55 minute flight from ATL to MEM is barely break-even these days because of the cost of fuel, the higher burn due to the shortness of the leg, and the competition on that route, also served by Northwest and Delta. Can't get the ticket prices high enough on that segment to make any money, as you're primary objective is to bring people into the hub to turn onto higher-yield routes.
An 86-seat CRJ 900 would be a lot more cost-effective on that route, burning 30% less fuel and carrying only 26% fewer passengers. So, if you have an aircraft that is going to burn 300 gallons less fuel at $2.50 a gallon, that's $750 in savings. If your yield is $10 per passenger on that run, carrying 31 fewer passengers is a loss of $310 in revenue.
The 86 seater will actually make $440 more every time it flies that route (2 legs, 4 non-stops per day, 30 days a month, 12 months a year), $1,267,200 per year in savings on that ROUTE alone.
Now take 2 more routes you save that kind of money on (short leg segments), 4 more flights per day for that aircraft = $3,801,600 per aircraft.
Now take 20 of those aircraft (the max allowed for 90-seat jets under the proposed Scope T.A.) = $76,032,000 yearly savings.
There's a REASON they want Scope relief. I am ALL FOR the company saving that kind of money. I'm not above flying a 90-seat CRJ at a major airline (or a 70-seater, or a 50-seater).
MY issue is that ALL flying under airTran colors is accomplished by airTran pilots. If they can recognize cost savings by selling 1/3 or 1/2 or ALL of the 717's and replacing them with RJ's, then by all means, go for it. But it WILL be airTran pilots flying them at Small Narrow-Body wages of current book plus COLA or better.
They never have the shareholder's meeting in ATL or MCO. They don't WANT to make it easy for employees to show up in force via picketing or even just a large presence to undermine investor confidence by highlighting labor strife.2) I know it's one of your cities, but why did they have the shareholders meeting in CHS?
Kolski's not a stupid person, by any stretch of the imagination. Remember what Sun Tsu said about your enemey: the moment you lose respect for your opponent is the minute you have lost your battle.
Respect is the father of preparedness.