PPRuNe Forums - View Single Post - Merged: QF/JQ reduce capacity
View Single Post
Old 28th May 2008, 16:45
  #26 (permalink)  
Taildragger67
 
Join Date: Aug 2001
Location: Stuck in the middle...
Posts: 1,638
Likes: 0
Received 1 Like on 1 Post
Lazysundays,

Well yes, but as Coaldemon points out, if the price of your biggest input goes up, but your revenue stays the same, you get thinner margins; to keep your margin, you have to raise your prices. But that means less people buying - so less supply (ie. seats) required.

Best to take your most expensive-to-run bits of kit (ie. Classics of all sorts & other oldies) out and leave it to the newer, more efficient ones to take up the slack - or just cut the marginal routes.

Might all mean a bit of harder arguing with Boeing to get compensation for the787 delays though, as QF will be wanting to get the latest, most efficient kit they can up the line. So maybe some more 76s or 330s (with the latest donks) or even a few 777s for a while!!
Taildragger67 is offline