We finally can define
over-capacity.
The correct term should be uneconomic capacity,
an inherent weakness that is compounded by an
industry practice that emulates other capital
intensive, commodity industries. The US airline
industry has too often expanded too much during
the up cycles and kept uneconomic capacity in
place in the down cycles -- all in the name of
market share.
If you look at page twelve of the .pdf, why is the reduction in capacity represented as a linear reduction when the years at the bottom of the page indicate that the slope of the reduction is not a year by year presentation?
If you look at the bottom of the graph it follows: '80'87'86'90'84'99'83'88'04'92'85'97'96'00'94'89'93'81'98'95'08'82'07'05'06'91'03'01'02'09
It appears that the data was rearranged to present a downward slope but the years represented show something quite different.
The thrust of the presentation says that regionals were a bubble that is the result of unanticipated consequence of the pursuit of scope protections by organized labor: I'd like to see and hear a conversation between the author of this piece and Bob Mann.
Mann basically said that RJ's were not the cure-all for the majors in his 1999 piece: LINK PROVIDED Robert Mann: the Sky's the Limit
Perhaps the purpose of money loosing, air-space congesting RJ's was nothing more or less than an attempt at breaking scope clauses through a loss leader type concept that would yield future gains through the diminution of wages and career aspirations of union represented workers at the major air carriers?
OK so merge AA/AE but by making it financially viable to the mainline labor unions to allow it? Why not?
If you look at page twelve of the .pdf, why is the reduction in capacity represented as a linear reduction when the years at the bottom of the page indicate that the slope of the reduction is not a year by year presentation?
If you look at the bottom of the graph it follows: '80'87'86'90'84'99'83'88'04'92'85'97'96'00'94'89'93'81'98'95'08'82'07'05'06'91'03'01'02'09
It appears that the data was rearranged to present a downward slope but the years represented show something quite different.
The thrust of the presentation says that regionals were a bubble that is the result of unanticipated consequence of the pursuit of scope protections by organized labor: I'd like to see and hear a conversation between the author of this piece and Bob Mann.
Mann basically said that RJ's were not the cure-all for the majors in his 1999 piece: LINK PROVIDED Robert Mann: the Sky's the Limit
love this quote --
"If labour can’t let go of their memories of what the industry was 20 years ago to focus instead on where it’s going over the next 20 years, then they will have no one to blame but themselves if they fail to help position airlines – and the pilots they represent – for success."
Who are you quoting (labour-someone in England) and what was the context?
i know you and bad news bob think the data is manipulated or flawed but it is not supposed to be a timeline - it ranks the years with the biggest declines/increases in capacity...mann wrote his 1999 piece as a paid consultant for the APA so take it for what it is worth
Was there a failure in editing a presentation from one of the most prestigious Engineering Universities in the world or was the data configured to fit preconceived notions?
I see neither. All I see is that Swelbar wanted to graphically demonstrate the year by year changes in ASM and rank ordered them by the magnitude of the change. And in the last decade, seven years of the ten show a decline in capacity. Granted, it is a somewhat unconventional bar graph style, but some see straw men anywhere they look.