Old Sep 12, 12, 7:54 am
Join Date: Oct 2009
Posts: 503
Originally Posted by TRAVELSIG View Post
The problem with the bean counters excel test often is they fail to consider that the fixed costs do not have anywhere else to be allocated to. A famous case of a company that kept cutting business lines as they were not profitable and customers as they were not profitable- only each time to learn that the remaining customers and the remaining business units were each time not profitable with the attached incremental expense allocation increases.

But then again, an airline would never think that way- would they now?
I'm sure LH will deploy their aircraft where they think it will be the most profitable. And I think they have been doing a decent job in that regard.

I assume LH is going to strenghten their Middle and South American basis in the coming 2-3 years. From what I heard, they make good money on their current Latam routes (GRU, EZE, BOG), so why not add 1 or 2 if the aircraft utilisation permits it.
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