Bottom line: PI and PSA were for sale. As I recall Icahn was looking at PI; how would that have worked out relative to where PI employees are today. PSA was bleeding money and marketshare when USAir took over. It is monday morning quarterbacking to say it would have turned our different. As one former CEO said, "we are where we are." Let's all get over the good old days and see what we can do to keep this airline in the air.
The Best Manager To Your Opinion
- Thread starter madders
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This isn't just theory. It's real.PITbull said:
First of all, what's the definition of "capacity?" Is it where everyone who would want a seat, assuming money were no object? If so, then we've always been at undercapacity. Or maybe it's where every seat is sold at or above cost, in which case we've pretty much always been at overcapacity.
Regardless, a decreasing supply with an increasing demand will necessarily cause an increase in average yield. Figure it this way...if the supply is decreasing and the demand is increasing, eventually the LCCs have sold every seat and the legacies still have more to sell. They can sell them at a huge premium in that case, resulting in higher yields.
