Rough week for US airlines
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For the US airlines...
I don't know but I'm sure that American pax are pretty fed up with the extremely poor cut cost service that their major carriers are serving up at the moment and I don't think they will put up with it forever.
There will be big change in the industry over the next decade but I fear that more legacy airlines will disappear taking many jobs with them first.
I don't know but I'm sure that American pax are pretty fed up with the extremely poor cut cost service that their major carriers are serving up at the moment and I don't think they will put up with it forever.
There will be big change in the industry over the next decade but I fear that more legacy airlines will disappear taking many jobs with them first.
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What is the solution? I donīt know.
Does anyone know?
Does anyone know?
Aviation is having a hard time because we can't possibly compete with other users, such as cars. In Europe we are very happy with paying $370 p/b to fill up our cars with the taxes included. The US will do the same, because people living in 'suburbia' have no other choice. If the supply/demand balance gets tighter the price will keep on rising until air travel is back to the days when only the rich could afford it. Oh, and algae oil costs $800 p/b.
In the mean time, wannabee's are investing 80k in flight training while both Shell's CEO and Exxon Mobil predicting peak oil within the next 8 years.
Crazy world.
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Be serious. You say American passengers are fed up and won't put up with it any longer? What on earth do you think they'll do? Lie on the floor and kick their heels? Start their own airline, PassengerAir? Refuse to fly?
Nah. They'll continue to buy $99 tickets to LA and complain.
Nah. They'll continue to buy $99 tickets to LA and complain.
Everything is under control.
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A big pile of cash will keep the big airlines from that same fate, for now.
It's not that the big carriers aren't buffeted by the same forces that shut down ATA on Thursday and Aloha on Tuesday. Champion Air, a Minnesota-based charter airline, will stop flying by May 31.
But the nation's biggest airlines have hoarded some $19 billion in cash as of the end of 2007, according to a tally by Calyon Securities analyst Ray Neidl. Even if fuel stays at today's levels and revenue drops 2 percent, they would still have $14.7 billion in cash at the end of 2009, under Neidl's estimate.
It's not that the big carriers aren't buffeted by the same forces that shut down ATA on Thursday and Aloha on Tuesday. Champion Air, a Minnesota-based charter airline, will stop flying by May 31.
But the nation's biggest airlines have hoarded some $19 billion in cash as of the end of 2007, according to a tally by Calyon Securities analyst Ray Neidl. Even if fuel stays at today's levels and revenue drops 2 percent, they would still have $14.7 billion in cash at the end of 2009, under Neidl's estimate.
http://www.nytimes.com/aponline/busi...=1&oref=slogin
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Solution
the solution to the US airline problem
reregulate the airlines, fares that allow for a 5 to 10 percent profit for the airlines and investors.
costs inline with current fuel prices.
proper use of larger planes to newly slot controlled or recontrolled airports.
this is the 30th anniversary of deregulation...everything is down...fares are down.
service is down
delays get people down
reregulate the airlines, fares that allow for a 5 to 10 percent profit for the airlines and investors.
costs inline with current fuel prices.
proper use of larger planes to newly slot controlled or recontrolled airports.
this is the 30th anniversary of deregulation...everything is down...fares are down.
service is down
delays get people down
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Managements run companies, not unions or staff.
Companies fail because management fails to come up with a viable business plan.
You can't blame labor for the poor choices in shareholders' selection of a board, who in turn select senior management.
In no way is this exclusive to the airline business, either.
Companies fail because management fails to come up with a viable business plan.
You can't blame labor for the poor choices in shareholders' selection of a board, who in turn select senior management.
In no way is this exclusive to the airline business, either.
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Be serious. You say American passengers are fed up and won't put up with it any longer? What on earth do you think they'll do? Lie on the floor and kick their heels? Start their own airline, PassengerAir? Refuse to fly?
I don't know what will happen, (if I did then I'd be a very rich man) but I'm fairly sure that the industry especially in the US, will change markedly in the next 10 or so years. With a recession on the way and the price of crude continuously climbing, the first people to stop flying will be the budget leisure travellers.
With a recession on the way and the price of crude continuously climbing, the first people to stop flying will be the budget leisure travellers.
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And who will be the big winner, initially anyway? The ME airlines... How much are they "paying" for the oil nowdays? So far it's mainly regional-ish companies being hit, but soon the long haul companies will fall if the oil is staying at current levels. This development will be a nice push for Dubai Inc, Abu Dhabi Inc and Doha Inc. 
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"October 24, 1978.
That day is when the airline industry in the USA went to hell. Deregulation.
Even the hotshot low cost carrier, southwest is now cutting corners. where will it end?"
Get your facts right please. Southwest has not cut any corners and is committed to bringing a safe and reliable product to its Customers
That day is when the airline industry in the USA went to hell. Deregulation.
Even the hotshot low cost carrier, southwest is now cutting corners. where will it end?"
Get your facts right please. Southwest has not cut any corners and is committed to bringing a safe and reliable product to its Customers
Last edited by G-ONADS; 4th Apr 2008 at 09:52. Reason: incomplete
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the solution to the US airline problem
reregulate the airlines, fares that allow for a 5 to 10 percent profit for the airlines and investors.
costs inline with current fuel prices.
proper use of larger planes to newly slot controlled or recontrolled airports.
this is the 30th anniversary of deregulation...everything is down...fares are down.
service is down
delays get people down
reregulate the airlines, fares that allow for a 5 to 10 percent profit for the airlines and investors.
costs inline with current fuel prices.
proper use of larger planes to newly slot controlled or recontrolled airports.
this is the 30th anniversary of deregulation...everything is down...fares are down.
service is down
delays get people down
G-ONADS: I think this is what was being referred to:Records: Southwest flew unsafe planes
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But when oil was cheap there were airlines going under.
JetBlue is selling A320's, with clear language from the CEO:
http://www.businessweek.com/ap/finan.../D8VQL7R80.htm
"We're pretty much at the mercy of the cost of energy into an aircraft," JetBlue Airways Corp. Chief Executive David Barger told an aviation conference at the U.S. Chamber of Commerce.
Last edited by saccade; 4th Apr 2008 at 11:41.
Paxing All Over The World
Mercenary Pilot
Oh yes they will!!!!!! Everyone wants to pay less and, given the terrible state of the US economy, no one is going to pay a penny more.
stepwilk had it correct:
Which what folks in the UK do and, I have no doubt, other Europeans too.
sevenstrokeroll
Interesting, you want a Communist style ideology to protect you? Yes, it is going to be horrible in the next few years - and not just in the US - but human beings have universally declared that, as individuals, they want to make as much money as possible and spend as little money as possible. 2008 is the place where those demands will crash head on.
For the US airlines...
I don't know but I'm sure that American pax are pretty fed up with the extremely poor cut cost service that their major carriers are serving up at the moment and I don't think they will put up with it forever.
I don't know but I'm sure that American pax are pretty fed up with the extremely poor cut cost service that their major carriers are serving up at the moment and I don't think they will put up with it forever.
stepwilk had it correct:
Nah. They'll continue to buy $99 tickets to LA and complain.
sevenstrokeroll
Deregulate the airlines, fares that allow for a 5 to 10 percent profit for the airlines and investors.
costs in line with current fuel prices.
etc. ..
costs in line with current fuel prices.
etc. ..
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Nah. They'll continue to buy $99 tickets to LA and complain.
Which what folks in the UK do and, I have no doubt, other Europeans too.
Which what folks in the UK do and, I have no doubt, other Europeans too.
LCC's don't have low fares because they just happen to be an LCC. They sell their seats for the optimum price in order to maximize profit. FR is able to operate very thin routes because they can be profitable with relatively low yields. This might change with higher operating costs and hence: higher fares = capacity reduction.
Trash du Blanc
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The financial input and different approach to management and problem solving from Europeans might just be what these US airlines need right now.
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US vs. EU LOCO
Am not much in the know about the US domestic/regional vs. EU market. But what is it that seems to have caused so many problems for the locos there. I hear of less EU ones going to the wall than US. Is this just due to the higher number of such operators, oversupply, problems with underlying costs or is it management pure and simple? Despite the slowdown in Europe, no big names have headed down the pan yet (possibly just a question of time), and in fact some are still growing at a fair pace? Just curious.