If we didn’t have such high costs, we’d make more money

Gordon Bethune makes the stupid statement of the day.

    Bethune allowed that traditional carriers’ costs are higher, but said this was because staff are more senior than at low-cost carriers that have started up in the past few years.


    Continental recently calculated its 2002 financial statements assuming it had the same revenue and network, but the labor cost structure, of JetBlue. Instead of a $350 million loss, Bethune explained, Continental would have had a $450 million profit. The difference is “directly attributable to wage rates and seniority levels,” he said.

Yup, it’s just the unfair advantage of a lower cost structure that makes JetBlue better off. Don’t blame us!

This from the head of an airline that has had the cost-shaving advantages of two bankruptcies.

Wonder who Gordo thinks negotiated those higher costs?

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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