US Airways Files for Bankruptcy Protection

[MLBWINGBORN]

Finally..A writer that sees a little bit of the truth behind such stupid comments made by a leader in our goverment.

I like him.This week at least.

Mike

 

[banned username 1]

This business is insane and we brought it all on ourselves.

So,the next time anyone of you experts wants to point a finger somewhere..

I suggest you stand in front of a mirror first.

Mike

I believe that's what I meant when I implied that the laws of unintended consequences meet human nature. I just want to be clear that in the face of huge Federal deficits that you are sending back any Income Tax refunds, right? ;-)

Be well,
UAL78

 

[MLBWINGBORN]

UAL78.

Nice to hear from you after a long absence.I look forward to your comments always.

As for my tax refund.
If you are suggesting that I return my refund to help the goverment prop up this failing industry of ours..Sorry..I am of the faith that believes that the market should be allowed to run its course.

Every time we try to resist,alter,or artificially create un-natural market conditions, the results are always far worse than if we had allowed the weak and wounded to fail.

The current over capacity situation with several airlines in or near BK, is a prime example of what happens when a failed business model is allowed to continue to take up market share through goverment backed loans and the financial benefits BK affords.

In the end the public suffers due to the tax burden,the workers suffer due to a loss of job security and benefits,and the airline industry suffers because the required market adjustments after a long period of imbalance are almost always deadly for several airlines.

Sound managment practices,control of costs,a reasonable price for a given service,and a constant eye on the future is a proven business model.

It is my personal belief that every time we step off the path of sound business models or continue to force a faulty business model on any market, the market as a whole suffers.

A T Rex is neat.

But I do believe that the world is much better off with out them.

Mike

 

[d.fitz]

Hey MLBWINGBORN!

That was probably the best and, I think, most accurate assessments of the airlines problems. I agree completely.

Just thought I'd let you know - its pretty rare to see any sanity here : )

 

[Lear70]

Every time we try to resist,alter,or artificially create un-natural market conditions, the results are always far worse than if we had allowed the weak and wounded to fail.

Creating unnatural market conditions through government-subsidized loans and grants has definitely been one of the "big loser ideas" in aviation history, but regulation is another story.

Regulation created unnatural market conditions and how can the "result" of failing carriers, loss of service to hundreds of cities, loss of jobs numbering in the hundreds of thousands, and costs to taxpayers of hundreds of millions, if not billions be worse than higher ticket prices required during regulation?

The current over capacity situation with several airlines in or near BK, is a prime example of what happens when a failed business model is allowed to continue to take up market share through goverment backed loans and the financial benefits BK affords.

Another result of deregulation.

In the end the public suffers due to the tax burden,the workers suffer due to a loss of job security and benefits,and the airline industry suffers because the required market adjustments after a long period of imbalance are almost always deadly for several airlines.

Another result of deregulation.

Sound managment practices,control of costs,a reasonable price for a given service,and a constant eye on the future is a proven business model.

That's exactly why this industry is headed back to a state that will require regulation or the resultant loss of service to many vital communities and many international destinations. Airline management left to its own devices, with the exception of a few LCC's, has shown they will NOT make sound business decisions.

The best part of that quote is in the last paragraph: "a reasonable price for a given service." The legacy carriers have been pricing their "product" so far under their "cost" for so long that there's no way they could ever expect to remain in business for the long-term. Even if the wages for ALL labor groups at the legacy carriers were adjusted to any of the LCC's wage equivalents, those carriers would STILL be in the red because of the staffing needed for hub operations, cost of operating separate fleet types, and management over-staffing and salaries. THAT'S why U can't exit BR, why US went back in a 2nd time, and why D is on the precipice.

The LCC's can't service everywhere, the government can't allow more than two or three Legacy carriers to fall (the loss of service would initiate such a huge public outcry that it would become central campaign issues, especially since the LCC (for the most part) have NO international service), so we're left with a conundrum: continue unregulated operations, watch our legacy carriers fall like dominoes, lose service to many communities, and watch the eventual market adjustment that will result in increased ticket prices in markets where there is no longer competition but keep ticket prices low in markets served by LCC's, or re-regulation that will retain vital markets but increase ticket prices sooner and probably higher for everyone, including the LCC's.

Sucks to have no good solutions...

By the way, you're exactly right about computer parts. The only parts that are made stateside are the LCD's. The vast majority are produced in San Jose, CA (silicon valley) and are shipped to Mexico for assembly where the electronic parts have already been made by low-cost workers (or imported from Taiwan, etc), then they're sent back stateside for final production (product stickers, branding, etc). That's why it's usually cheaper to replace your entire laptop than just replacing the LCD - its the most expensive component of the laptop because it's made by U.S. workers earning a liveable wage instead of child/slave labor in some 3rd world country.

 

[MLBWINGBORN]

Ummm?

I guess it was that overnight at the Holiday Inn last night.

Thanks for your kind words..

Mike