Originally Posted by
mrakant
Such high prices with economy in bad shape cannot be sustainable. I run a hedge fund and surprised companies are able to spend. This looks like repeat of what happened couple of years back is going to happen when SQ had to cut down on service. I came couple of weeks back ( I do this every 45 days) the flight was more than half empty.
Guess you must be looking to short the market at some point then.
If that flight is half empty, it's probably running at a huge loss. I've always thought that the 340-500 is just a flying gas-tank anyway, with a few seats slotted in to fill in the spare space.
I think I read somewhere before that, before the GFC and at the high points of oil prices, TG had to achieve a load factor of 120% on their 345's to break even, and obviously, they couldn't hang passengers out on the wings... They've been trying to sell them for quite some time, but nobody wants to buy them unless it's at virtually scrap metal price.