Mike Boyd has some interesting comments about the economic impact of the failure of US Airways at his website:
The Boyd Group: Aviation Hot Flash
While Boyd is quick to point out that US Airways failure is "by no means a certainty, and that the carrier has made progress in its re-organization efforts," he has some pretty interesting insights to the impact on different types of communities, and the bigger picture should US Airways not make it.
I was a bit surprised to read his view that the Shuttle has limited value in that he believes it is used to enhance brand loyalty rather than to be independently profitable.
His viewpoint that the failure of US Airways will not "fix" the industry is one to which I subscribe, somewhat. I think there would be short term benefits as the industry sorts out what is valuable, what isn't, what to replace, and what not to replace. But, as the remaining carriers grow into the hypothetically failed US Airways former markets, the potential is there to quickly "re-create" the excess capacity redcued immidiatly following a failure. In other words, US Airways' failure's effect on the industry is a "quick fix" which will only last until the remaining carriers collectively decided to replace it, like with new deliveries for LCC's and Legacies recalling people and aircraft to go into former US Airways markets.
Note: Boyd is not an "informed" source according to USA320Pilot. Since he has admitted US Airways had made progress, I am sure USA320Pilot will post or point out that quote anyway.
The Boyd Group: Aviation Hot Flash
While Boyd is quick to point out that US Airways failure is "by no means a certainty, and that the carrier has made progress in its re-organization efforts," he has some pretty interesting insights to the impact on different types of communities, and the bigger picture should US Airways not make it.
I was a bit surprised to read his view that the Shuttle has limited value in that he believes it is used to enhance brand loyalty rather than to be independently profitable.
His viewpoint that the failure of US Airways will not "fix" the industry is one to which I subscribe, somewhat. I think there would be short term benefits as the industry sorts out what is valuable, what isn't, what to replace, and what not to replace. But, as the remaining carriers grow into the hypothetically failed US Airways former markets, the potential is there to quickly "re-create" the excess capacity redcued immidiatly following a failure. In other words, US Airways' failure's effect on the industry is a "quick fix" which will only last until the remaining carriers collectively decided to replace it, like with new deliveries for LCC's and Legacies recalling people and aircraft to go into former US Airways markets.
Note: Boyd is not an "informed" source according to USA320Pilot. Since he has admitted US Airways had made progress, I am sure USA320Pilot will post or point out that quote anyway.
