Originally Posted by
pbarnette
I'm a little confused... So you are saying that keeping the old seats is good news for pax? Am I misreading?
I'm not suggesting that the old seats is good for pax, but I'm also not as convinced as you are that it is bad for pax.
Originally Posted by
pbarnette
Finally, as to the profitability question. Bear in mind that the outlays for these seats do not immediately hit the bottom line. The P&L impact will only come later, hopefully corresponding with some measure of increased revenue that the seats will bring. And if the new seats will not bring any increased revenue, then why bother with new seats at all? And if they will, then why not drive the revenue growth now?
Well, there will be L now, as that is cost for the seats, and I'm sure the vendor actually wants to be paid for the seats when they are delivered, not when the carrier starts realizing the benefit of having the seats in place.
Hopefully the P comes along later, as CO gets more business and/or can charge a premium for the seats. If all the carriers (including CO) are full up front anyways, then the only way for the P to happen is if they raise fares. I'm not sure that is good for pax at all.