Quote:
Originally Posted by grizy
To get that, you have to say cargo revenue is almost pure profit.
The main reason cargo looks so profitable is its considered a peripheral (purely marginal to fill space) business and the costs are not fully allocated.
Delta did try to develop a pure cargo service. They gave up.
Adding cargo to passenger planes is identical to putting a warmer bag with pizzas into a cab and dropping off pizzas. Do you not see the similarity between what they are doing?
Also, the costs are fully allocated. Brush up on business logic. Dividing something into something else doesn't make any sense.
Quote:
Originally Posted by BoredSocial
Actually you've already shown me why TS is having so much fun beating on you. Your assertion that Cargo makes up 25% of Delta's bottom line makes absolutely no sense. In 2014 they produced 934M in revenue for the company. This is compared to ~35B in revenue generated by moving people.
There are two scenarios you could work from here: 1) this cargo being carried has almost no costs associated with it, in which case it would be significantly more than 25% of Delta's 1.5B in pre-tax profits... Or 2) it has a cost structure comparable to transporting passengers and their luggage in which case it is <5% of total revenue.
Nearly every argument you have made in this thread is impossible to substantiate because they have no substance, which is why I haven't bothered to say anything of substance besides my earlier assertion that your view of the 'logistics' sector was hilariously shallow.
Uber is a good company that is good at what it does. It has a very strong chance of capturing and retaining significant market share in local passenger transportation. That doesn't mean that it's going to become a dominant force in the Auto parts from Nuevo Laredo to Detroit ever. Some Uber-like company WILL have a transformative impact on how the spot market for truckload freight operates. It 100% will NOT be Uber.
So you've glossed over anything substantial to state that Uber won't be moving truck parts intercity with total certainty. Wow.
Glad you could contribute that tidbit into this thread. Too bad you couldn't address any of the questions I posed after a lot of big talk.
Also, learn to read a financial statement or how accounting works wrt Delta. Pretty sad.
NB: Tho in a far ranging SDC situation, a play into that market seems possible. However that is significantly far removed from what they are doing today and in the near future that I don't really wanna quibble about it.
Quote:
Originally Posted by petjax
I rest my case i have made in my previous post, damn it must be a pain in the ass to be around you and hear you talk.
Because you come over as a arrogant wise ass know it all, and no one likes a person like that, i know i don't.
That is fine. I'm glad you stopped equivocating. It is genuinely pathetic to not even insult someone without being wishy washy.