PJ2
The underlying and systemic soft spot in the industry is and has been economics. Deregulation (and its results, heightened competition), has produced an environment that has surprisingly taken quite some time to show itself. I credit an institutional and historic respect for safety, not any recognized obedience to a proper model. Of course fares are too low. The problem is that no one dare raise them, since all carriers are close to the edge with cash and/or credit.
To me, debt should be restricted to capital assets, not payroll. With all the talent in this cockpit, one is taken back by the outcome. Colgan comes to mind, as other rather basic aspects of loss of control gain headlines. I can't say the economic momentum bodes well, as it's rather obvious too many carriers chase the residual core of the client base.
Success breeds competition. Great success breeds ruinous competition.
I can't think of an easy way out, and in our case, cutting overhead produces some rather pitiful headlines.
bear