Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Airlines Planning Asking For More Aid  
User currently offlineSleekjet From United States of America, joined Jul 2001, 2054 posts, RR: 20
Posted (13 years 8 months 6 days 10 hours ago) and read 1922 times:


II Cor. 4:17-18
5 replies: All unread, jump to last
User currently offlineFlashmeister From United States of America, joined Apr 2000, 2939 posts, RR: 6
Reply 1, posted (13 years 8 months 6 days 9 hours ago) and read 1897 times:
Support Airliners.net - become a First Class Member!

Ridiculous. This is, ladies and gentlemen, the dawn of a new era. This is now the era where those with poor business planning can request a check from the government. This is the era where because businesses have built a lethargic infrastructure that cannot adapt to new circumstances, taxpayers get to prop them up and foot their bills. This is the era where poor decisions by a corporation gain it a government-led propping-up, rather then the wrath of an unforgiving marketplace.

This is simple lunacy.

When buggy-whip manufacturers saw their profits edged out by the new-fangled automobiles, did they appear in front of Congress and ask to be propped up, even though their product was no longer desired by the public and they failed to properly engineer their companies to adapt to new market dynamics?

A long time ago, during the United-USAirways debacle, I argued that a company in a cyclical industry -- especially an airline -- goes through sort of a life cycle, not uncommon to a grove of trees. You start up, you have to live in the shadows of the big guys and find a way to survive. Then you grow, and you get some of the sunshine, rather than all of the shadows. Then, you grow more and you have to learn to manage that growth. If you become too big and unweildy and fragile, then you collapse in on yourself and die. But, if you manage your growth and position yourself to be able to adapt to other situations, then you might have good years and bad years, but you'll survive.

The major carriers who are out for another welfare round have gotten too fragile -- they can't adapt to a new market. You don't see Colleen Barrett, Jeff Potter, or Bill Ayer with their tin cups out asking for spare change. Why? They're too busy actually running their companies. I'm puzzled as to why Joe Leonard is out there predicting doom and gloom: AirTran can definitely make money nowadays, so either FL is not as well-positioned as I thought, or Leonard is greedy.

I don't want one red cent going to the likes of United or the other group of outrageously mismanaged carriers for creating these behemoth businesses who can't survive a change in the marketplace. If they can't survive on their own, let them die -- all of them. Where there's demand, there will be someone to step in and serve it... hopefully by a carrier who's actually been responsible in doing some disaster planning rather than relying on Uncle Sam to foot the bill.


User currently offlineLoneStarMike From United States of America, joined Jul 2000, 4028 posts, RR: 31
Reply 2, posted (13 years 8 months 6 days 6 hours ago) and read 1879 times:

I have a question regarding this topic as it would relate to Continental Airlines. Let's say the government doesn't give them the aid they need. Are they going to be allowed to file for Chapter 11 a third time, or is there a limit to the number of times a company can file for Chapter 11?


User currently offlineSrbmod From , joined Dec 1969, posts, RR:
Reply 3, posted (13 years 8 months 6 days 3 hours ago) and read 1854 times:

In a way, this is going to legitimize the consolidation of the U.S. airline industry. Some mergers are going to happen, competition be damned; because the gov't has already poured a lot of money into the industry, and would rather see people keep their jobs. If the failed USA/UAL, USA/AA merger/breakup were proposed after 9/11, it would probably get approved. The normal ways of doing business are gone, if putting a monopoly in air travel saves 1 million jobs, then the gov't will allow it, of course with strings attached. The gov't needs to close the window on their bank to the airline industry, I mean you don't see travel agents going to the government for a bailout/handout!

User currently offlineN79969 From , joined Dec 1969, posts, RR:
Reply 4, posted (13 years 8 months 6 days 3 hours ago) and read 1849 times:

The travel agents tried to get a bailout. Tried hard. I wouldn't give them much credit. They whine way more than the airlines.

User currently offlineLowfareair From , joined Dec 1969, posts, RR:
Reply 5, posted (13 years 8 months 6 days 3 hours ago) and read 1839 times:

Flashmeister: There needs to be someone from the LCCs. Say that the government announces it will 'give' money to failing carriers; all of a sudden FL, WN, B6, etc. aren't on a level playing field anymore, they get to try to compete with subsidized companies. If they do give out money, but base it on revenue, then that could be perceived as unfair to the LCCs. It is also a venue for him to say that FL isn't in as bad shape as the majors b/c they have adapted, and cut down costs over 12% since 9/11 while the majors just screamed bloody murder. This way, the feds might rule in favor of the LCCs: no more handouts. Carriers actually have to adapt, and the government will acknowledge that there is such a thing as corporate Darwinism, whether they believe in evolution in life or not.

Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
US Airlines Asking For More Public Aid posted Fri Jan 10 2003 03:42:06 by Businessflyer
Alaska Airlines To Try For More DCA posted Sat Jan 10 2004 00:44:03 by Rydawg82
More Airlines And Flights For CVT posted Sun Oct 15 2006 13:15:15 by Humberside
looking for more info and photos of EOS Airlines posted Fri Jun 30 2006 00:49:36 by Canflight
Singapore Airlines CEO To Stay For 2 More Years posted Wed Feb 7 2001 17:28:32 by Singapore_Air
Four More Airlines Sign Up For A3XX posted Tue May 30 2000 07:58:10 by GUNDU
Spring Airlines Fined $20k For Selling 13-cent Tix posted Mon Dec 18 2006 15:23:31 by Airplanenut
LH Asking For Fingerprints For JNB Departures posted Mon Oct 2 2006 09:43:21 by QM001
Airlines Planning On Launching Services To LAX? posted Wed Sep 27 2006 04:46:33 by Juventus
Saudi Arabian Airlines Builds Counters For Passeng posted Mon Sep 18 2006 10:26:15 by Cedars747