Originally Posted by
Spounce
Isn't that a bit simplistic? Malaysia Airlines has just announced that it's pulling out of its one route to the USA and has cited current fuel costs (within the context of the current state of the US dollar, I'd assume) as one of the reasons.
The orginal statement was overly simplistic. Airlines have revenue in a number of countries and currencies. Same for expenses. Fuel is not really the issue: if the USD goes up, fuel price in USD should go down. Airplane lease or purchases may be the main issue. Or securities/loans denominated in USD.
But I suspect the main issue is differences in the balance domestic/US/overseas between revenue and expenses. Surely the main component of AC's costs is domestic, because of salaries etc. Should be similar for revenue, but perhaps not to the same extent? Or to a larger extent?
Anyway, the man looks more stupid than I expected him to be. Or is it just arrogance and he thinks a statement that he himself may not believe in is good enough for the rest of us?