Posted September 23, 2008

Continental's Hilfman On Capacity Cuts: 'Wait 'til you see what's coming in Q109'

Today at The Beat Live in Cleveland (don'tcha wish you were here?), lively moderator and MC Dave Hilfman, SVP of sales for Continental, led with this provocative comment about airline cuts.

He cited that 4th quarter cuts had exceeded 8 percent, but in Q109 we should see "12, 13 and 14 percent cuts." This is of course in response to the continued volatility of jet fuel, which yesterday closed at $120 per barrel, an unprecedented one day increase. He also mentioned that every $1 increase costs Continental and additional $45 million in fuel per year.

Have you asked yourself what the implications are on your business of these cuts?

What are your "choke points"?

Higher airfares

Reduced capacity

Reduced frequency

Nearly 100 cities losing service altogether

Fewer travelers to consume your product or service

Dependency on air travelers for your revenue stream

Focus of current technologies solely on the air traveler

It is time to get a plan in place. I'd love to hear some of your ideas of what you are doing.

~ Chicke Fitzgerald

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