FlyerTalk Forums - View Single Post - In depth analysis of the airline industry's problems
Old Nov 6, 2001 | 1:46 pm
  #13  
duxfan
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Shareholder:
We have witnessed an absurd display of corporate irresponsibility from all parties: management, unions, customers and government.</font>

shareholder, I'm curious, help me out here. I can see irresponsibility from management, unions, and the government. but how have the customers been irresponsible?

are they irresponsible by using the power of the free market to demand lower fares, even if it meant that the airlines are selling seats at a loss? or are they irresponsible by purchasing greatly inflated full Y fares, and continuing to travel as the airlines jacked those fares higher and higher?

if it's the former, then am i "irresponsible" when i buy a sweater on sale at the Eddie Bauer Outlet, and pay 40% of the price that i saw it for in my local mall? if it's the latter, was i "irresponsible" by not refusing to buy that last minute ticket and closing a sale? i just don't see how i as a consumer have been irresponsible since i have no control over the actions of the airline.

i've said it before, and i'll say it again, the airline business model is fatally flawed. the model relies on business passengers subsidizing the fares of leisure passengers. only the airlines with a low cost structure, which allows them to make money on all passengers, will survive.

while southwest does not make money on every passenger they carry, i'm willing to bet that they make money on a higher percentage of customers than any of the so called majors. but none of the majors want to realize that important fact.

airline management at the majors reminds me of the crew of that EAL1011 that crashed in the everglades in the 70's. the crew was so focused on the gear indicator light, that they forgot to watch the altitude. now we see airline management watching the cash flow indicator, hoping to see it swing towards positive. but they don't seem to see the ground rushing up at them. PULL UP! PULL UP! PULL UP!
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