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http://www.bloomberg.com/news/2013-07-12/the-future-of-u-s-air-travel-fewer-flights-and-higher-fares-.html
The Future of U.S. Air Travel: Fewer Flights and Higher Fares?
Subtitle: Is Bigger Better?
The airlines say their very survival depends on becoming so big they can ride out the industry's perennial boom and bust cycles, and it is hard to argue with their reasoning. "For years we've lurched from crisis to crisis," with billion-dollar losses to show for it, says Gary Kennedy, a senior vice president of American Airlines who's among those selling the merger on Capitol Hill. "Now we finally have an opportunity to create a stronger and more stable company that can withstand the inevitable shocks." Those shocks are well known from the headlines: fuel prices that have soared from 10 percent to as high as 40 percent of airline operating expenses in ten years; terror attacks; disease epidemics; and swings in the overall economy. Airlines are particularly vulnerable to these forces, which explains why billionaire investor Warren Buffett famously said that someone should have done "capitalism a favor" and shot down the Wright brothers' first flight. The newly bulked-up mega-airlines might finally prove him wrong—if, as their recent profits suggest, they can use their might to run more efficient operations. And at least consumers won't have to worry about the airline they just bought a ticket on going under prior to departure.
According to West pilots, Dave, Eric, Tony and the rest, Buffet had it wrong: it's better to SHOOT AND KILL the Wright brothers and put the LITTLE GIRL from their recruiting tapes in the Captains seat.
The Future of U.S. Air Travel: Fewer Flights and Higher Fares?
Subtitle: Is Bigger Better?
The airlines say their very survival depends on becoming so big they can ride out the industry's perennial boom and bust cycles, and it is hard to argue with their reasoning. "For years we've lurched from crisis to crisis," with billion-dollar losses to show for it, says Gary Kennedy, a senior vice president of American Airlines who's among those selling the merger on Capitol Hill. "Now we finally have an opportunity to create a stronger and more stable company that can withstand the inevitable shocks." Those shocks are well known from the headlines: fuel prices that have soared from 10 percent to as high as 40 percent of airline operating expenses in ten years; terror attacks; disease epidemics; and swings in the overall economy. Airlines are particularly vulnerable to these forces, which explains why billionaire investor Warren Buffett famously said that someone should have done "capitalism a favor" and shot down the Wright brothers' first flight. The newly bulked-up mega-airlines might finally prove him wrong—if, as their recent profits suggest, they can use their might to run more efficient operations. And at least consumers won't have to worry about the airline they just bought a ticket on going under prior to departure.
According to West pilots, Dave, Eric, Tony and the rest, Buffet had it wrong: it's better to SHOOT AND KILL the Wright brothers and put the LITTLE GIRL from their recruiting tapes in the Captains seat.
