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Is anyone at Southwest worried they have to start competiting on a level playing field, something they've been immune to these last few years?
However the loads have been dropping and will drop, for everyone. While oil is dropping I think the BIG concern will be the passengers having MONEY to actually fly in this economic climate.
Good Luck to us ALL,
AAflyer
For what’s it worth, I believe last summer’s scare for oil will turn out to be a good thing in the long run for the industry. It forced an early hand for the airlines to seriously think and then take action about reducing capacity and protecting yield.
The airlines are way ahead of the curve this time around. Usually it’s the other way around when we’re adding tons of capacity and then having to stop midstream, turn the battleship around, and do the drastic cut and furlough all at one time; basically going from full afterburner to idle in one year.
The X factor will be how long the airlines can hold onto the fare increases of last summer. Once the loads start dropping off, the tendency will be to drastically cut prices. We shall see.
As usual, it will be an interesting next 12 months. Good luck to us all.
AA767AV8TOR