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Tuesday, September 23, 2008

Day One The Beat Live - On airline cuts CO Hilfman says "Wait 'til you see what's coming in 1Q09"


At today's Beat Live Conference in Cleveland (don'tcha wish you were here?), lively moderator and MC Dave Hilfman, SVP of Continental Sales led with this provocative comment about airline cuts.

He cited that 4th quarter cuts had exceeded 8%, but in 1Q09 we should see "12, 13 and 14% 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 $45m 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. And if you need help..... give me a call.

Chicke Fitzgerald
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