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United Airlines to suspend Accra-Washington operations

Comment: Shallow analysis

Author:
Len Hobbs
Date:
2012-05-03 09:07:10
Comment to:
Shallow Analysis


Purchasing power has nothing to do with true 'cost control' and the burdened costs of, simply, being a 'U.S. airline'.

A U.S. carrier cannot charge enough for the tickets, in Africa, to cover the costs of the service.

My analysis was/is 'spot on' - the only 'shallow' analysis was done by United - prior to their introduction of service to Accra.

A well managed Ghana based airline (many will say that is an 'oxymoron') could make $100K (USD) profit, per day, on a Washington/Accra route.

A Ghana based carrier could 'scale' that same service from Lagos, Nairobi and Addis Ababa with similar margins...per day.

It is possible.

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