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Old 22nd August 2005 | 11:09
  #4 (permalink)  
ZQA297/30
 
Joined: Jan 2002
Posts: 297
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From: The Far Side
Not so funny when you look at it objectively.

What isthe common factor in all these financial woes?
On average, the industry has never produced a fair return on capital invested.

The suicidal and predatory price competition that has been going on for a while now.
Air fares have decreased dramatically and constantly, in real terms, ever since the inception of commercial aviation. The cost of living has not.
The fuel spike has caught most with not enough money to hedge, and not enough cash to wait it out.
To continue the the self-destructive behaviour, the airlines have only one avenue left, squeeze the employees.
Employees are subsidising unrealistic fares. In effect they are being encouraged to cut their fellow employees throats. One airline's employees being pitted against anothers to see who will work for less.

Perhaps I am wrong. I would be only too happy to be proven so.
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