Originally Posted by
HNLbasedFlyer
We are literally years into people making that statement. If Kirby is so wrong - why aren't the airlines performing so much better than UA?
Despite another down day in the market - UA is up regardless of the CNBC comments. Yesterday, Morgan Stanley upgraded UA. UA is about to get a lot more 787's. Etc, etc, etc.....
Are the other airlines just more incompetent?
All Kirby has done is strip costs to the bone - slashing catering, cutting staffing, etc. You don't need to be a genius to figure out that cutting costs and raising prices will increase revenue, but this is not sustainable, even a high school class running a business simulation could do that same. So he made good numbers for a few quarters, that party is coming to an abrupt end very soon. With the product stripped to the bare necessities, what is Kirby going to do when demand dries up? Strip it down even more? What's next, prepack meal boxes in Polaris delivered by a skeleton crew just meeting FAA requirements?
Ordering more aircraft when times are good based on demand that management has completely mis-projected is not something to be proud of - I can see some of those orders getting trimmed or resold as the next 24 months evolve.