Originally Posted by BigBeerBelly
Actually FLYI wanted to start this November with AB from day one and an extra $10 million in the bank from UAL, but it was in UALs best interest to end the relationship ASAP. Also, from the beginning FLYI management said that they need at least 15 AB to show a profit with the CRJs. That put their estimates around 3rd quarter 05. Those things do matter. They are the foundation of a company. They are why people return to your company when they have to travel. The early departures will fit in perfectly with the red eye transcons early next year. Not having to wait an extra 3 hours for the next flight to LAN will help sell tickets. FLYIs biggest mistake in my opinnion is their failure to join GDS. Global Distribution Systems are a must for new airlines. Once the airline is famous then it would make sense to only sell from your website. Everywhere that you can find a UAL ticket you should be able to find a FLYI ticket. I expect Kerry Skeen will probably be announcing some sort of SABRE agreement next Wednesday. We'll see.
BBB
The problem with the 3 quarter 05 is that they didn't factor their losses. Don't take this the wrong way. I don't want to see them put thousands of employees out of work. But they have to be smarter with their money.