Clarifying the math
Hi Mr. Kotyk.
RE: Wildly successful? or Wildly exaggerated?
1)RE: “Even with a meagre 18% load figure to Chicago, Porter is within hundreds of dollars per flight of making a profit as higher yields and loads on other routes are subsidizing the Chicago operation.”
On this point, I think I merged two thought processes and may have clouded the issue. I was trying to say that even at 18% load to Chicago and based on the airfares you sampled, Porter is within a few hundred dollars of covering their costs on that flight. The additional point was that Porter has many other routes that are well above 18% load which subsidize the Chicago operation. They are two distinct points but I think I allowed them to converge - sorry for any confusion.
Additionally, the 55% Break even load factor (BELF) for the Q400 provided by Bombarider does not recognize the specific cost structure, fares, yields and loads of Porter. Porter accountants can tell you their BELF if they wanted to but that information is held sacred by most airlines.
2) The 1.3 million customers for 2010 is a PROJECTION as I indicated. This number was cited by Mr. Deluce in the Toronto Star when the new terminal opened. http://www.thestar.com/news/gta/article/769782--island-airline-s-new-terminal-paves-way-for-expansion
Don't forget that once the slot issue is finalised, Jazz and Colgan will likely arrive "sometime" this year. Despite the two new carriers and after re-reading the article, I think Mr. Deluce was referring to ALL Porter customers including those on flights outside of Toronto to obtain his figures.
Hope this all helps.
Take Care!
Joe
RE: Wildly successful? or Wildly exaggerated?
1)RE: “Even with a meagre 18% load figure to Chicago, Porter is within hundreds of dollars per flight of making a profit as higher yields and loads on other routes are subsidizing the Chicago operation.”
On this point, I think I merged two thought processes and may have clouded the issue. I was trying to say that even at 18% load to Chicago and based on the airfares you sampled, Porter is within a few hundred dollars of covering their costs on that flight. The additional point was that Porter has many other routes that are well above 18% load which subsidize the Chicago operation. They are two distinct points but I think I allowed them to converge - sorry for any confusion.
Additionally, the 55% Break even load factor (BELF) for the Q400 provided by Bombarider does not recognize the specific cost structure, fares, yields and loads of Porter. Porter accountants can tell you their BELF if they wanted to but that information is held sacred by most airlines.
2) The 1.3 million customers for 2010 is a PROJECTION as I indicated. This number was cited by Mr. Deluce in the Toronto Star when the new terminal opened. http://www.thestar.com/news/
Don't forget that once the slot issue is finalised, Jazz and Colgan will likely arrive "sometime" this year. Despite the two new carriers and after re-reading the article, I think Mr. Deluce was referring to ALL Porter customers including those on flights outside of Toronto to obtain his figures.
Hope this all helps.
Take Care!
Joe
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