3/ "The horizontal axis measures size, typically invested capital or sales as a percentage of the industry, and the vertical axis measures economic profitability. The area of each rectangle is the total value added for that sector or company."
Mauboussin research-doc.credit-suisse.com/docView?langua…
Mauboussin research-doc.credit-suisse.com/docView?langua…
4/ What would a profit pool graphic look like today in in air transport industry? What segments in the value chain are performing worst? Which segments will recover first?
"U.S. air carriers are collectively burning through more than $10B in cash a month."reuters.com/article/us-hea…
"U.S. air carriers are collectively burning through more than $10B in cash a month."reuters.com/article/us-hea…
5/ "An economic franchise arises from a product or service that: (1) is needed or desired; (2) is thought by its customers to have no close substitute and; (3) is not subject to price regulation. The existence of all three conditions will be demonstrated by [pricing power.]" WB
6/ When will a flight between two major cities will have "no close substitute" for consumers?
When will airlines be able to consider raising prices and not either:
1) lose customers to competitors and/or
2) see demand fall significantly
without "holding a prayer meeting?"
When will airlines be able to consider raising prices and not either:
1) lose customers to competitors and/or
2) see demand fall significantly
without "holding a prayer meeting?"
7/ "German Economy Minister Peter Altmaier said that Lufthansa would have to repay the loan as soon as it turned a profit again. "This can take a few years. No one knows in advance." reuters.com/article/us-hea…
7 billion euroloan package for Air France reuters.com/article/us-hea…
7 billion euroloan package for Air France reuters.com/article/us-hea…
