North by Northwest
Veteran
Strato, if I may correct your spelling. Od-orous . (as in fresh BS)
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And to expand on that, when a customer buys TPA-LHR and flies TPA-IAD-LHR, how much of that fare goes to "Ted" and how much to UA? (In terms of the accounting to determine whether or not Ted is profitable)Segue said:To Strato's point, nobody really knows if Ted is profitable...I don't think United really knows either. Ted is not really a separated airline and shares many costs with mainline operatons.
Its all about allocation of costs, when so many are shared fixed costs, your allocation will make the difference between loss and profitability. Its not fraud, its just the reality of accounting.
But, Ted could very well be profitable!
This is the whole concept of "beyond profitability" that is one of the reasons the legacy carriers are in the trouble they are today.whlinder said:And to expand on that, when a customer buys TPA-LHR and flies TPA-IAD-LHR, how much of that fare goes to "Ted" and how much to UA? (In terms of the accounting to determine whether or not Ted is profitable)
And I see you're acusing our CFO of criminal fraud. Do you have anything to back up your charge? I didn't think so.