Tango-Bravo From United States of America, joined Jun 2001, 3784 posts, RR: 30
Reply 8, posted (11 years 4 weeks ago) and read 1958 times:
The key to success in gaining loan guarantee approval from ATSB is becoming eminently clear: Get your costs in line with what the market will realistically bear.
Unfortunately (or otherwise) the U.S. majors have have chosen (yes, chosen -- as in not being forced) to turn domestic air travel into a price-driven commodity in which he with the lowest costs has the potential to survive and thrive; he with marginally higher costs had better have a product with value-added features for which customers are willing to pay more; for he with significantly higher costs, liquidation is a matter of "when" rather than "if" -- barring highly lucrative international routes with which he is willing to underwrite domestic network losses.
What is sad is the price that labor has paid to bring USAirways to the place where costs appear (to the ATSB) to be in line with realistic revenue projections in the "brave new world" of the U.S. domestic market that has been inexorably unfolding for the past decade while the "full-service" majors remained in steadfast denial until their very continued existence was in serious jeopardy.