Does anyone know what the goal is for cost per seat per mile? I know we were around 12 cents per mile which mgmt says was way too high. Mr. Wolf a few years ago was talking getting down to 9 cents per mile. Where are we headed?
My guess is that to get down to 9 cents CASM is a lot to ask for. It may not seem like much to go from over 12 cents down to 9, but it is a HUGE undertaking. If it's not done the right way, it can do far more harm than good. Anyone remember Ron Allen's infamous 7.5 cents CASM program that nearly destroyed the fabric of Delta?
I would imagine a more realistic goal would be to have their CASM lowered to around 10 cents. That would put them in very good shape to compete.
The number I once saw from the company was 10 point something per mile. I remember that because my first thought was how is U going to compete with that kind of cost? Even after all of the pain and suffering, U still cannot compete with the low cost carriers as they continue to encroach in U's markets. Not to mention the free falling yields. I am not here to rain on anyone's parade, but it is really bad out there.