Originally Posted by UnitedSkies
Independence Air doesn't get it - driving down airfares to cause higher-cost competitors to be unprofitable is fine - fair competition, that is, if you have a cost structure that enables you to be profitable. I have not seen anywhere that Independence Air's cost structure is anywhere near low enough to sustain such fares.
All of the numbers that we have all seen (unless someone here is an insider that I don't know about) include the old rates that DH was paying for their jets, they include a larger number of jets that they operate today, and they include things like legal fees and I would assume at least some layoffs given the number of aircraft that they are shedding vs. the number of Airbuses that they are adding.
The best numbers that any of us could go off of at this point are the April numbers. If anyone has 'em please post 'em.
While I believe that in the long run DH is going to make it (and hopefully without going into bankruptcy) I am just blown away by this comment in the article : "But Skeen said Independence is cutting costs and might break even this summer and turn a profit next summer."
That just seems really ambitious, and makes me wonder where they are getting the costs cuts from.
At any rate, if we all had numbers from April to look at we might be able to join in Kerry's sentiment, but until then we will just have to wait.