FlyerTalk Forums - View Single Post - Larry Kellner: “the business cycle is continuing to decline.”
Old Mar 22, 2009 | 3:21 pm
  #36  
pbarnette
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Join Date: Sep 2005
Location: SEA
Programs: UA Silver, BA Gold, DL Gold
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Originally Posted by HeathrowGuy
My point exactly. For the past few years, much of WN's profitability has NOT been a direct result of flying people around America because doing so on a macro scale is not, in and of itself, a money-making enterprise. And because domestic air travel is both 1) financially unviable on a macro level, and 2) essentially necessary, on a macro level, for the functioning of our society, government may have some expanded role to play in reconciling these conflicting realities.
No, I don't think it is your point. My point is that it is possible to make money, as long as you control your costs. That includes fuel hedging, but it also includes fleet simplification, efficient ground operations, etc.

We do agree, though, that air travel is necessary. But I see no evidence that there is a shortage of players or potential players. Which is it? There isn't enough demand (or too much supply) for the carriers to make money, or the government must step in to ensure that we have air travel? It can't be both. There is simply no compelling evidence that the government needs to step in to ensure coverage.
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