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Old 7th Dec 2011, 15:58
  #1046 (permalink)  
rareair
 
Join Date: Jan 2011
Location: London
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Chitty,

You've compared what you feel Jet 2 will do with what Thomson do.

Could you also let us know average age and balance sheet values of the fleets and the finance position for each aircraft?

Also details on crew conditions of employment, arrangements with airports and anything else you have to hand.

The truth is it's impossible to compare different operations with each other. when you don't KNOW about their cost base.

Compare these two airlines flying leisure routes from 2 airports serving the same metropolitan area to the same holiday destination approx 2 hours distant.

Airline 1 flies fairly new A319s.
Airline 2 flies 20 year old MD8Xs.

Airline 1 sells flights direct and also tickets through a GDS. It does have click throughs on its web page for car hire, hotels, but many customers don't use these.
Airline 2 sells many package holidays and also point to point flights. It only sells direct.

How do the accountants allocate costs and revenues in each business? It's likely to be very different.

Also what is the cost to each airline of a plane being parked on the tarmac doing nothing? Is there any benefit to be gained flying the plane for revenue which whilst covering the marginal costs doesn't cover the allocated fixed costs?

Actually the examples I am thinking of are F9 and G4 in the USA.

F9 flies DEN-LAS many times daily.
G4 flies from 2 small airports 50 miles out of Denver (FNL and COS) to LAS a few times a week.

Both continue the routes and so appear to be making money.
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