Michael Will Appreciate This…

08/07/07 :: by Patrick

American Airlines saved $40,000 in 1987 by eliminating one olive from each salad served in first class.

http://www.airlinequality.com/main/facts.htm

2 Responses to “Michael Will Appreciate This…”

  1. hlipner Says:

    i appreciate it!

  2. mark Says:

    sounds like a lot of money. just for the heck of it I did some math:

    an article in 2006 says that AA operates 3900 flights per day. I’ll assume that was roughly the same in 1987 but who knows.

    3900 flights per day x 365 days per year = 1423500 flights per year

    maybe they serve an average of 10 salads in first class on each flight.. sounds a little high though. so we now have 14.2 million first class salads per year

    which means that an olive costs 2.8 cents!

    how much does a first class ticket cost? maybe $600 on avg (lots of corp discounts) in 1987. so they would have generated $8.5bln in revenue from first class alone with my previous assumptions.

    Total profit margin increase on first class: 0.00047% !

Leave a Reply