Originally Posted by J.Edward

Perhaps we'll have to agree to disagree on this but I'd argue the additional equipment (both narrow and widebodied) and facility improvements does represent CO investing in their future.

Likewise I’d also argue that CO has been quite bullish with their 787 orders that will open up markets with far greater potential yields than either side of Europe.

But to they really need to do all of Europe?

At the last DO CO mentioned they’re approaching the max utilization of 752s and why sacrifice taking out seats – a sacrifice felt by all European and domestic turns – when the plane can already fulfill the majority of European ops?

***(Please forgive me but I'm not sure what fleet you're referencing here...the 738's?)

The problem is that the premium earned solely on those Eastern European routes would have to justify the removal of seats every day on every route such a plane would fly. If this were not the case, or rather, if the company could perform better on flying the close in routes (again without the loss of the seats), why would CO move to reduce seats?

The key here is if the premium generated by flying to Eastern Europe will outweigh the current premium enjoyed on Western Europe destinations and cover the removal of 15 (or however many seats is necessary) to make it a viable route for the 752.

I am of the opinion that it is not.
What they're doing now is making them money and has made them money.

What you propose doing, removing 15 seats, will directly jeopardize their ability to continue to do so for the payoff of sending the 752 to markets that can potential offer higher yields.

You accuse Kellner of focusing to much on the bottom line but by casually suggesting CO zap almost 10% of Y inventory are you yourself even aware of the cost side of the equation and the constraints that govern it?!

If the yields were high enough to do it than I suspect it would have already been done.

But it has not.

At least not by CO with 752s. (Has DL started service to Eastern Europe with their armada of 767s? I seem to think they had...but can't quite remember...)

If they had more widebodies than I'd guess it would be a different story...but again they do not. What they have is a widebody fleet that is maxed out and a 752 fleet that is soon to be the same.

First off I highly doubt Kellner, or anyone at the top level, worries about beer glass sizes. There's probably something more that we do not know than just a simple "we want to save on our bar tab so we'll give the customers smaller glasses...even though it's complementary...and they can just come back and ask for another...but ah-ha...it will save money!”