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by rsj_hn 1837 days ago
Actually that's much closer to the definition of a cost center.

A cost is a thing you need to pay but if you spend more on it you get very little benefit. Thus it has a binary nature or at least a nature where "good enough" is all you need. A profit center is something where if you make it better you generate more revenue. Therefore things like necessary infrastructure is a cost, whereas adding more routes is a profit.

Whereas I think you are confusing cost and profit to mean "important" and "unimportant". Not having your headquarters fall down is important. Having HVAC for your office workers is important. But no one is going to say "Let's choose this airline, have you seen how awesome the HVAC in their main office is? And how the foundation to their HQ is going to last a hundred years longer than their competitor?" But they will say "Let's choose this airline because it has a direct flight to where we want to go".

1 comments

Thank you. In retrospect, I had a feeling something was off about my thinking, but I couldn't articulate where. Importance and profitability are different domains. They might penny pinch weather reports, and risk management probably characterized it as "low risk, high impact", saw "low risk" and underinvested.