25iQuiz: In 1977 Alfred Kahn said this:
"I really don’t know one plane from the other. To me they are just marginal costs with wings.”
What are the implications of this point about marginal cost on the pricing power and unit economics of an airline?
google.com/amp/s/25iq.com…
"I really don’t know one plane from the other. To me they are just marginal costs with wings.”
What are the implications of this point about marginal cost on the pricing power and unit economics of an airline?
google.com/amp/s/25iq.com…
Governments have devoted more than $85 billion to airlines since the COVID crisis. "Some 80% of flight capacity remains idled." bloomberg.com/news/articles/…
What did Warren Buffett mean when he said this last Saturday?
"We know what happens in airline pricing, when load factors go down and there’s an oversupply of airline seats." (02:39:20)
"We know what happens in airline pricing, when load factors go down and there’s an oversupply of airline seats." (02:39:20)
"The airline industry has situation where have very, very, very low incremental cost per seat with enormous fixed costs. The temptation to sell the last seat at a very low price is very high and sometimes it’s very hard to distinguish between that seat and the last seat." Buffett
"U.S. airlines are collectively burning more than $10 billion in cash a month and were averaging just 17 passengers per domestic flight and 29 passengers per international flight."
reuters.com/article/us-hea…
reuters.com/article/us-hea…
"Net booked passengers have fallen by nearly 100% year-on-year. If airlines were to refund all tickets, including those purchased as nonrefundable or those canceled by a passenger instead of the carrier, 'this will result in negative cash balances that will lead to bankruptcy.'
