Originally Posted by
Dave Noble
Isn't the biggest issue going to be how much AA is prepared to pay for the offerings - I expect that all the companies could provide high quality fare as long as the airline was prepared to pay for it
I am sure that cost will be the driver for the change - will the new company provide better offerings for the amount that AA will pay , would seem to be a relevant question
Partly, maybe even mostly. Although I wouldn't assume that every single operator/vendor has the same cost structure, overhead, indirect costs, etc. It may be that given the same budget, one vendor is able to put a higher percentage into food/beverage and still project that it will hit its targets. Not saying that
is the case, but it's not
necessarily true that AA is looking to slash the money it spends. It may have been shopping for a vendor who can commit to doing a little bit more in some way with the budget they have already allotted.
I imagine Eurest was willing to figure it out to win the business, too.