Re: Leo Mullin Interview

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



Mullin was correct to think of charging an enabling premium, but the
internal debate may have underestimated the future damage to airline
pricing that intermediaries and discount market-makers PCLN, Hotwire,
Orbitz et al have done and will do, in perpetuity, some of which is
related to competitive response.

NPV on that stream of discounts will vastly exceed the instant gain,
though it trashes competitors' revenue premiums far more than Delta's,
and to some extent is compensated for by cuts in other distribution
costs.

- Bob Mann
--
R.W. Mann & Company, Inc.  >> Airline Industry Analysis
Port Washington, NY  11050 >> tel 516-944-0900, fax -7280
mailto:info@RWMann.com     >> URL http://www.RWMann.com/

Donald Mamula wrote:
>
> Interview with Leo Mullin:
> One thing that hit me was this comment about DL and Priceline:
> "We recognized that we were enabling Priceline to become a successful
> organization and, therefore, our compensation shouldn't be just in
> terms of ticket sales but also in equity in Priceline. The rest is
> history. We made an equity gain of nearly $1 billion from Priceline."
>
> Guess they bailed out near the top.
>
> Don

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]