Kinda thought provoking comments.
http://www.aviationplanning.com/asrc1.htm
Airline Failures In 2005:
Not Necessarily, But...
Here's a fact: The only reason that the airline industry as a whole is in financial chaos is because of fuel.
Here's another fact: Had oil prices not spiked in 2004, most legacy carriers would be reporting strong profits, notwithstanding depressed yields. But spike they did, and the industry is again producing a sea of red ink.
Naturally, the usual suspects in the write-before-you-research segments of the media will continue to offend journalistic standards by filing stories about the need for "consolidation" and how the legacy carrier model is "broken." These people are fully exercising their right to make fools of themselves.
Here's a reality: There are no guarantees that any airlines will go 86 in the coming year. Strategies can change, more efficiencies can be found. And oil prices may well drop into the mid-$30 range. Things change. Management can change. Market tactics can change. It's clear that traffic demand is robust. Nevertheless, as of December 2004, we have three carriers that may be on the road to oblivion if they don't fundamentally change direction.
US Airways. Regardless of the causes, this airline system is a goner if it cannot get its labor relations in order. It appears to have degenerated into the Hatfields and McCoys, except they're all armed with lawyers instead of guns. Somebody might want to advise the company's bankruptcy attorneys that employees are not some sort of cattle that can simply be replaced with another, cheaper herd. On the other hand, having unions threatening to strike does wonders to keep passengers away in droves. The anger, the hurt, and the pain employees experienced in being forced to take huge pay cuts, only to be told to give more, cannot be underestimated. But US Airways is headed for extinction if this near civil-war situation isn't reversed very soon.
http://www.aviationplanning.com/asrc1.htm
Airline Failures In 2005:
Not Necessarily, But...
Here's a fact: The only reason that the airline industry as a whole is in financial chaos is because of fuel.
Here's another fact: Had oil prices not spiked in 2004, most legacy carriers would be reporting strong profits, notwithstanding depressed yields. But spike they did, and the industry is again producing a sea of red ink.
Naturally, the usual suspects in the write-before-you-research segments of the media will continue to offend journalistic standards by filing stories about the need for "consolidation" and how the legacy carrier model is "broken." These people are fully exercising their right to make fools of themselves.
Here's a reality: There are no guarantees that any airlines will go 86 in the coming year. Strategies can change, more efficiencies can be found. And oil prices may well drop into the mid-$30 range. Things change. Management can change. Market tactics can change. It's clear that traffic demand is robust. Nevertheless, as of December 2004, we have three carriers that may be on the road to oblivion if they don't fundamentally change direction.
US Airways. Regardless of the causes, this airline system is a goner if it cannot get its labor relations in order. It appears to have degenerated into the Hatfields and McCoys, except they're all armed with lawyers instead of guns. Somebody might want to advise the company's bankruptcy attorneys that employees are not some sort of cattle that can simply be replaced with another, cheaper herd. On the other hand, having unions threatening to strike does wonders to keep passengers away in droves. The anger, the hurt, and the pain employees experienced in being forced to take huge pay cuts, only to be told to give more, cannot be underestimated. But US Airways is headed for extinction if this near civil-war situation isn't reversed very soon.
