Originally Posted by
Nomorepretzels
Just to add insight as to the product cost (I'm ITB), a bottle of Woodford Reserve is invoiced to AA at a cost of around 53 cents, delivered to the caterer.
Add on the additional cost of putting it on the aircraft and carry it around in the air makes me believe there would be hardly any significant increase in MCE fares.
Yes but have to also look at the opportunity cost. AA will lose out on the $5-6 profit margin per drink sold. At the same time AA will turnover liquor inventory quicker which will help decrease inventory costs.
Some have reported MCE prices have gone up nominally and one case posted above they went up around $8.
In the grand scheme of things I think this enhancement will be neutral for AA’s bottom line. All a wash between the slightly incremental revenue they will see from MCE revenue and the added cost of serving free drinks.