Originally Posted by
CO 1E
The points you raise above (and in some other posts in this thread) remind me of Jeff Smisek's poolside comment that the losses associated with the launch of one unsuccessful international route could wipe out CO's profits for a quarter, or even for a an entire year.
I would guess that the opportunity costs of flying 752's to Florida rather than remove 15 seats and add a new Central or Eastern European destination outweigh the additional revenue that could be generated from the new route. Like you, I am of the view that if this could be done in today's economic and competitive environment and be worth the risk, CO already would be doing it.
Since the launch of CGN has been unsuccessful should we expect an upcoming quartertly or annual loss?
But seriously, you have all made good points and I am glad the discussion has been so fascinating.
My point is that, in any institution, it's very easy to get too wrapped up in certain assumptions. Clearly it has worked well for them but as the airline grows and becomes more complex the mantra of simplicity that has worked so well for them could become an anchor.