Labor holds the industry hostage. The effect is that when times are good, salaries ratchet up beyond the long term ability of the business.

The industry can't afford to put up with "sick outs" and "no overtime" and "CHAOS" and all the other labor slowdown tactics.

Then, when economic times become slower, the airlines bleed red ink and labor resists lowering its above-market rates. They talk of the "last time we made big concessions" as if this has any bearing on business.

Look around you. Do you think all six airlines are managed by complete idiots? You probably do think that. But the fact is that there is something systemically wrong with airlines and the one cost that can be controlled is labor.

Fuel and amortization -- the other big costs -- are not controllable essentially. Fuel can be hedged but when costs go up, fuel costs will rise and there is nothing the airline can do about it.

It is labor that is out of hand. If the airlines were free to fire workers and hire new ones, there would be a much better balance of power. Labor unions are exempt from anti-trust and the two places you see union power is in the public sector and in transportation. These two sectors are not free market sectors so it is no coincidence.

Alternatively, binding arbitration might work and this is being introduced I believe through some federal legislation.

As I said, the United story hurt all the airlines and was never real employee ownership. It was "milk the airline" as long as it lasted at the expense of customers and especially shareholders.