Re: DLs Low Cost

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On 21 Nov 2002 at 11:09, boblochry wrote:

> I've always wondered about using the 757 in a low cost operation.
> It has the lowest cost per seat mile of any narrow body I can
> think of.  But can DL fill it day in and day out?  In the all
> coach configuration they are proposing, it is coming in at just
> under 200 seats.  The other problem that "airline within an
> airline" operations tend to encounter is the drain on the
> mainline's own coach traffic.


In 1970, Robert Townsend wrote a book titled "Up the
Organization".  I have always felt that the book was way ahead of
its time.

Anyhow, from that book, on the topic of "greed" (page 127):

To increase our share of the market a few years ago, I was on the
verge of approving the startup of a new subsidiary -- which would
compete with our bread-and-butter business -- at discount prices.
To verify my own brilliance, I tried the idea out on a tall,
rangy regional vice-president named Stepnowski.  After hearing
the plan described in some detail, he sank the whole project with
one sentence: "I don't know what YOU call it, but we Polacks call
that 'pissing in the soup'".


Couldn''t sum up my own thoughts any better.

Don
Fan of great business writing

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