Crossair chief looks to long-term profits

Airline Industry Information, April 6, 2001

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

Andre Dose, the CEO of SAirGroup's regional carrier Crossair, has stated that he is not operating the company with short-term profits in mind.

Dose told Reuters that he is sacrificing short-term profits for long-term growth, because whilst immediate profits are 'an important factor', the carrier's shareholders 'also have a long-term interest in the company's sustainable and long-term profitability.'

Dose was asked why Crossair has so may aircraft when operating figures for 2000 showed that its aircraft flew with an average capacity of only 52.8%. He said that the carrier was 'investing in lots of new routes.' Dose also stated that he expected that aircraft on the new routes would fill up over time and generate big profits. He said, 'It is dangerous to slow down. It is dangerous if you don't grow.'

Crossair currently operates 75 aircraft and has outstanding orders with Brazilian aircraft manufacturer Embraer for seven 49-seat ERJ-145 regional jet aircraft and 60 ERJ-170s and ERJ-190s.

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