Bronner Optimistic About Future Of Airline After
- Thread starter USA320Pilot
- Start date
USA320Pilot said:
I'm not part of the "USA320Pilot is a ******** crowd" - but this post defies common sense.
Does the TP contain a new process for fueling jet engines with tap water instead of jetA? Because that's the only way US will be able to fly all those RJs with a lower CASM than WN.
Am I wrong? Then enlighten me, please. B)
BoeingBoy
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Well, let's look at Bronner's comments....
"Assuming that the IAM goes along with us in two weeks, then we'll have lower costs than Southwest."
He says nothing about "after the transformation plan is fully implemented" - unless getting all the employee cuts in place is the transformation plan.
What he does say is that if the IAM "goes along with us", then [not later] "we'll have lower costs than Southwest."
I'm still looking for guidance on where the 4 cents per ASM (50%) in non-labor cost reductions are coming from.....
Jim
"Assuming that the IAM goes along with us in two weeks, then we'll have lower costs than Southwest."
He says nothing about "after the transformation plan is fully implemented" - unless getting all the employee cuts in place is the transformation plan.
What he does say is that if the IAM "goes along with us", then [not later] "we'll have lower costs than Southwest."
I'm still looking for guidance on where the 4 cents per ASM (50%) in non-labor cost reductions are coming from.....
Jim
Perhaps the remaining four cents don't require anything more than an edict from on high.
I wouldn't go so far as to say that it's impossible to get systemwide CASM lower than WN. It's just going to require much more than we've seen to date.
We also need to be extremely cautious in how we define CASM. It could be strictly marginal cost of operating a flight, or it could include all of the fundamental support infrastructure...or something in between.
I wouldn't go so far as to say that it's impossible to get systemwide CASM lower than WN. It's just going to require much more than we've seen to date.
We also need to be extremely cautious in how we define CASM. It could be strictly marginal cost of operating a flight, or it could include all of the fundamental support infrastructure...or something in between.
BoeingBoy
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Michael,
"I wouldn't go so far as to say that it's impossible to get systemwide CASM lower than WN."
You're right, it's not impossible - just extremely improbable assuming that one uses the normal definition of CASM. Adding RJ's whose direct operating cost per seat mile is equal to or above WN's CASM doesn't help (speaking strictly about CASM and not revenue or matching the plane to the market).
"We also need to be extremely cautious in how we define CASM."
Point taken. Maybe this is where your first statement comes in - "Perhaps the remaining four cents don't require anything more than an edict from on high."
Jim
"I wouldn't go so far as to say that it's impossible to get systemwide CASM lower than WN."
You're right, it's not impossible - just extremely improbable assuming that one uses the normal definition of CASM. Adding RJ's whose direct operating cost per seat mile is equal to or above WN's CASM doesn't help (speaking strictly about CASM and not revenue or matching the plane to the market).
"We also need to be extremely cautious in how we define CASM."
Point taken. Maybe this is where your first statement comes in - "Perhaps the remaining four cents don't require anything more than an edict from on high."
Jim
