PPRuNe Forums - View Single Post - Gate Gourmet/BA crisis - Gatwick to be Shafted!
Old 9th Sep 2005, 12:28
  #25 (permalink)  
Re-Heat
 
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Bealine - you can get all that information in the best way to be able to decide whether a profit is made or not. It may not be in the form that you envisage it, but it will be performed, analysed, and decisions made upon it.

O'Leary will operate in a similar fashion as well.

You can get one for a division - just divide that by the number of aircraft. You will not receive one as it is highly confidential proprietary information with which rival could massacre BA on profitable or unprofitable routes as they desired if it were in their possession.

Realise that the profit of say G-DOCY is irrelevant - you should care about the route's profit, ASK, Yield etc as mentioned above, about which more meaningful data can be obtained.

I have always advocated that it's far better to sell 25 seats at £100 each than 100 seats at £25 each
This is completely unrealistic - a mixture is sold to ensure proper yield management and profit maximisation.

Combine these with aircraft untilisation rates - which is done - you do see exactly what is required.

Face it - LGW appears - or at least management desire it to appear as - a loss leader in order that Ts & Cs can be bargained down to a competitive level in the company as a whole.
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