WHERE TO START!!!
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by B747-437B:
In every market there exists a least common denominator (LCD), providing a basic product for the lowest price.
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Yes – little failures like WN and Wal-Mart come to mind
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by B747-437B:
…subsidized these losses by discharging their debt through Chapter 11 protection…
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Debt is not a candy store – the credit is underwritten and funding is not in control of the borrower – the lenders made decisions that endorsed and supported the model - you make it sound like management just kept dipping into some cookie jar of debt.
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by B747-437B:
National continued to sell services at a price below what it takes to make a profit
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If this is a sign of failure at this point in the cycle I guess we need to shut down, UA, AA, DL, NW, CO …
Losses of course can NOT be sustained and we will see several more attempts to dedefine the industry before it is all over
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by B747-437B:
It was a completely flawed business model with absolutely no hope of success
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And the majors have such a wonderful business model
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by B747-437B:
... Unfortunately, Mike Conway chose to pursue this loser model, rejected any recapitalization offers that excluded him from decision making and essentially dragged everyone else down with him as they continue to plunge deeper and deeper into the abyss</font>
OK Sean – time to put down the FAR’s and start reading the Federal Bankruptcy Code – the CEO is so far from being unilaterally able to do this that it is not even worth debating. The guy in the black robe is running the show – I executed DIP (debtor in possession) financing syndications for 3 airline clients in the 80’s and I can assure you that the CEO does NOT call the shots.
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by B747-437B:
In every market there exists a least common denominator (LCD), providing a basic product for the lowest price. The passengers with ultra-sensitivity to price will gravitate towards this operator, sacrificing quality and/or convenience for price.
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I think you have missed the point made by many – their service was FAR superior to that offered by their competitors. It just goes to validate the barriers to entry in this industry.
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by B747-437B:
All other operators provide value-added services for higher prices
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