Restructure...or Die
Hi 411A, I'll answer that one:
If restructuring doesn't satisfy the model you propose...what is the alternative?
I don't think 'Death' is realistic.
If, by Death' you mean the complete eradication of the whole worlds full-service airlines..... I think you're oversimplifying the marketplace.
A totalitarian solution has never worked in any human endeavour. Communism sounded fine to a lot of folks (some even hang on to the concept today) but overall its been proven as a failure because (among other things) it failed to recognise the human need for diversity of choice.
Not everyone wants to fly steerage class.
I've been in this business long enough to see the wheel turn almost full circle...from B737s losing money on shorthaul regional routes, causing majors to pull off them, to the early low cost operators replacing them with Shorts 360s, and then the market building up again to the new LCOs B737s displacing the 1st generation LCOs.
And now the 'frills' airlines adapting to challenge for the same routes they abandoned years ago.
Now the passengers appear to be coming round to the view that cheap isn't always cheerful, and the price differentials are closing.
The 'frills' airlines may never compete head on with the LCOs but the vast gap in the middle ground has been eroded rapidly, even in the last 12 months.
This is the view from Europe anyhow. The US seems to be on a continuing downtrend. But I'm no longer worried about my job over here.