Six reasons airlines are set to crash

[Redmeat]

Raise ticket prices.

The market will correct.

The end.

How is it that you haven't been scooped up and hired as the CEO of a major airline like Delta?

Have you wrote to these people and informed them of your break-thru business model?

 

[Flightdawg]

If teleconferencing is the magic bullet that kills the airlines, why hasn't the mere phone and now the newfangled data phones stopped people from going by and seeing clients, employees, work even.

Those did have impact and teleconferencing will have more impact but it won´t kill business travel. Only hurt it. Companies love to cut costs and teleconferencing is cheaper and almost like being there.

It´s the debt part that bothers me. Ticket prices won´t go up until the demand goes up. Sad to say, there is still too much capacity in the system for ticket prices to go up. If the capacity does go down and ticket prices rise, then the airlines will lose more passengers as vacationing families elect to drive or ride a bus. This means less flying and less pilot jobs. The good news would be that the airlines would be sustainably profitable again.

 

[Smarta$$]

"As the reasons below come into play, unions will not understand why workers will need to compromise. This will create unnecessary administrative costs to negotiate and prevent strikes. If workers don’t accept the waning health of their employers, ill-timed strikes could catalyze a negative feedback loop."

Typical bland Wall Street writer. Editor tossed him a story that he spent all of five minutes researching. Hey at least he corrected himself after someone pointed out that jetliners are made of aluminum instead of steel. Never mind the fact labor spent this entire decade 'compromising' our compensation.

We will NEVER be able to compromise our compensation enough to make wall street, executives or Republicans happy. It is a losing battle from go. I choose not to participate.

 

[Draginass]

One very prominent reason for the airlines problems is that insolvent bankrupt carriers like US Airways were allowed unfair competitive advantages given through bankruptcy, in some cases more than once. If those airlines were not given unfair advantages, pricing power would have been retained in the industry.

 

[Smarta$$]

One very prominent reason for the airlines problems is that insolvent bankrupt carriers like US Airways were allowed unfair competitive advantages given through bankruptcy, in some cases more than once. If those airlines were not given unfair advantages, pricing power would have been retained in the industry.

That's a great argument. Until it is YOUR employer.

 

[pilotyip]

refreshing post

Ticket prices won´t go up until the demand goes up. Sad to say, there is still too much capacity in the system for ticket prices to go up. If the capacity does go down and ticket prices rise, then the airlines will lose more passengers as vacationing families elect to drive or ride a bus. This means less flying and less pilot jobs. The good news would be that the airlines would be sustainably profitable again.

A nice does of reality. It is the consumer of airline travel that will determine the profitability of an airline. This consumer if they are paying for their tickets will change airlines for a $1.00. Last week SWA dropped their prices again after raising them early in April. I am guessing that their advance bookings dropped off drastically. As stated above, it is neither management nor unions that can operate without considering the impact on the consumer who has instant access to the cheapest fare on every route.

 

[Flopgut]

Pilots and other employees would not have to worry about the specific economics of why/who is buying the tickets if we didn't have a broken relationship with the RLA. When deregulation came the RLA should have gone.

 

[Draginass]

That's a great argument. Until it is YOUR employer.

Nevertheless, it is TRUE. And at one time I worked for a carrier that DID go completely OUT OF BUSINESS. I was just smart enough to ditch the lousy company before the executives augered the company into a smoking hole. The writing was on the wall for YEARS at US Airways, but it's still staggers on as a zombie outfit helping dragging down the rest of the industry. UAL and DAL haven't helped either with their milktoast scope and compliant MECs.

 

[justin15e]

Why don't we unionize your employer, the military?

I don't know what you're trying to say here. Are you trying to be funny?

 

[FLYLOW22]

No, there is a solution.

Get legislation to charge a PILOT FEE just like a fee for 9/11, bags, sandwiches and crappers are charged right now.

Let them charge what they will and stop making the issue complicated.

CAPA?