The reason why the legacy airlines are getting their heads handed to them is very simple: they've been around long enough to have senior people and large numbers of retirees. Need I remind anyone that these people were promised that, if they worked hard, in the end they would be rewarded with a decent retirement.
Every time a new LCC crops up, with no older worker/retiree costs, they will of course be able to provide a comparable service to the travelling public for less than the legacy carriers must charge. Unless the legacy carriers can call upon some added value---eg, vast network--- they are doomed, no matter how wonderful their management or workers are. And frankly, these 'added values' don't translate well on the consumer's home computer; I've never seen an 'added value' sort column on travelocity.
This cycle is infuriating. It means that every few years legacy carriers will either a) cut benefits so that their cost structure---with senior workers--- resembles the next start-up's cost structure with brand-new workers, or B) die. Either way, someone is being hung out to dry.
It's all very Darwinian. Some of you will automatically say "That's the way capitalism is, a company that doesn't stay on its toes doesn't deserve to make it." Yes, it's very easy to say that when you aren't affected by the consequences.
Jetblue, for example, doesn't succeed because it has fantastic workers and intelligent management (although a low numbskull ratio never hurt any company); it succeeds because it hasn't yet, nor will it have to for a long, long time, provide for the welfare of retirees.
My point is that when a company doesn't have to respond to the costs and needs of senior workers and retirees, it will obviously fare better in the marketplace, everything else being equal. And my point goes a little farther than that: the airline industry, the way it has evolved, systematically (if not with malice o' forethought) penalizes senior workers and those workers' companies, and there's not a thing any individual can do about it except be lucky.
How can this cycle be fixed? A universal seniority list would do it, but I'm not holding my breath. Pilots and FAs and Mechs, left to themselves, will never agree to this, because the ones it might hurt---the lucky few who picked a winning horse early in their careers---have no motivation to back it. The ones it would help have all been furloughed or are just holding on with their present companies, and have other fish to fry.
I don't even know why I brought it up. Maybe just for the record.
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