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" "Fuel is a basic part of the business. Everybody basically pays the same price for fuel. It is a matter of how appropriately you trade off capital costs against operating costs. New airplanes burn less fuel but they take more capital.
Robert Lloyd Crandall (born December 6, 1935) is an American businessman who is the former president and chairman of American Airlines.
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Market share is important because you're going to fly between point A and point B. You need to offer a reasonable amount of frequency that's something that... That you used to have to in order to appeal to some segment of business travellers and there will be some business travel frequency. Therefore, frequency isn't going to become completely unimportant, maybe less important than it used to be. But if you're going to be a competitor in a given market, you find that market, you will, you can't, you can't rely on price, right? To say, well, I've got, I've got 2% of the capacity, but in order to fill the aeroplane, I've got to have 5% of the business. It's not going to work that way. And the consequence market share is important. You can't... To be a participant in the market. You've got to have a representative pretend age of capacity and, correspondingly, a representative share of the business. Alternatively, you're going to find yourself in very difficult times.
The business market has always been price sensitive, within itself. The airline business has been bitterly competitive for many, many years. The consequence is that yes, business travel is not as price sensitive as leisure travel, but when you are trying to sell business travel to the companies that they work for, it's a very competitive business. So, certainly, business traveller is price sensitive. It's just price sensitive in a different way. Not in the absolute sense that the leisure business is very price sensitive in any case.