BOING
Tell me the name of any other business or industry that has seen the price it charges for its product reduced to such an extent.
Have you bought a computer recently? - the price charged for a product is generally what the market will stand. I am not up to date on the way the airline market operates in the states, but in Europe we have seen the big state monopoly airlines, BA, Air France, KLM, Alitalia etc. etc. struggle because their prices are too high.
By comparison the Low Cost airlines EasyJet, Ryanair, Go etc. etc. are booming because they deliver what the consumer wants at a price that he/she is willing to pay.
To be fair to the staff of American, I am not convinced that salaries have a great role in deciding the bottom line - it is just that mismanagement see salaries as an easy target when times are tough, rather than concentrating on the real problems of efficiency, which are rather harder to tackle.
Good luck to everyone at American at this time.
