Gaunty, I know we both agree all sectors of the Australian aviation industry are in dire financial straits. Reasonable profits and return on investment no longer exist - and won't under the present industry structure and punter's travel habits (i.e. Australian route statistics and fares).
However, I'm sure you will agree there is a significant difference between a Punter's Cash and Carry business and a financial institution using punter's brass to underwrite risk.
In general it seems the insurance industry isn't a glowing example of profitability either - ask a few Lloyd's "names" in recent years! Certainly Australian aviation premiums are far lower than in other overseas aviation markets, suggestion that aviation underwriting is not exactly a profitable business either.
The Australian major carriers will all survive, in one form or another. But I would suggest they will become meaner and leaner in order to further reduce costs. Some significant staff numbers are going to be burnt and the "frills" of air travel further diminished.
I wonder what unfunded liability could be attached to the Frequent Flyer Programs..... Or what CASA's media mania early this year really cost Ansett....
[This message has been edited by Torres (edited 04 July 2001).]