Can anyone breakdown the seat per mile cost..? I'm just wondering if the labor was "free" could this company still make ends meet...?
Seat Per Mile Costs..
- Thread starter Justaramper
- Start date
BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
Since nobody else has jumped in yet, I'll take a swing at it.
To answer your second question first, theoretically yes. Exact numbers are hard to pin down since the W/O'd are included in the "Capacity Purchase Agreements" cost item. However, with what's there to work with, it seems that Group's operating CASM in the 2nd quarter is about 6.7 cents and total CASM is about 8.3 cents. If the W/O'd employees worked for free as well, these numbers would presumably be lower, assuming their employee cost is included in the "Capacity Purchase" line item and not in the "Personnal Expenses" line item, which I deducted.
Another way to answer your second question is to look at what U told the BK judge in their filing. Stage length adjusted CASM (excl. fuel) is said to be 10.0 cents and stage length and seat density adjusted labor CASM is said to be 4.2 cents, leaving 5.8 cents for non-labor costs (excluding fuel). Just as an aside, it IS interesting that they adjusted for seat density for labor costs (making them look higher compared to the all-coach airlines) but didn't do the same for overall CASM.
Your first question is more difficult because of the uncertainty of where certain costs are included in the report.
Jim
To answer your second question first, theoretically yes. Exact numbers are hard to pin down since the W/O'd are included in the "Capacity Purchase Agreements" cost item. However, with what's there to work with, it seems that Group's operating CASM in the 2nd quarter is about 6.7 cents and total CASM is about 8.3 cents. If the W/O'd employees worked for free as well, these numbers would presumably be lower, assuming their employee cost is included in the "Capacity Purchase" line item and not in the "Personnal Expenses" line item, which I deducted.
Another way to answer your second question is to look at what U told the BK judge in their filing. Stage length adjusted CASM (excl. fuel) is said to be 10.0 cents and stage length and seat density adjusted labor CASM is said to be 4.2 cents, leaving 5.8 cents for non-labor costs (excluding fuel). Just as an aside, it IS interesting that they adjusted for seat density for labor costs (making them look higher compared to the all-coach airlines) but didn't do the same for overall CASM.
Your first question is more difficult because of the uncertainty of where certain costs are included in the report.
Jim
