Major Airlines, R.I.P.?

[WSUCougar]

Is the airline industry in its death throes? Or at least the old biggies seem to be on the verge of total collapse. Despite the success of Southwest, the others just don’t seem to have a clue and continue to lose many millions on a regular basis. It’s weird to think of the world’s landscape without major American airlines, but they can’t continue to spiral downward as they are. Strange fate for something we have taken for granted for so long.

I'm not sure what would happen to fill the travel vacuum in their absence...

[sachmo71]

Is the airline industry in its death throes? Or at least the old biggies seem to be on the verge of total collapse. Despite the success of Southwest, the others just don’t seem to have a clue and continue to lose many millions on a regular basis. It’s weird to think of the world’s landscape without major American airlines, but they can’t continue to spiral downward as they are. Strange fate for something we have taken for granted for so long.

I'm not sure what would happen to fill the travel vacuum in their absence...


Did you ever see "The Fly"? Not the old one, but the one with Jeff Goldblum? All I can say is, if you are going to travel in the future, make sure you are ALONE IN THE TELEPORT POD!

[rkmsuf]

Where the hell are the flying cars? I was sure we'd have them by now.

[Raiders Army]

What about the giant flying eagles in Lord of the Rings? Does anyone know how much that costs? Do they offer a complimentary drink?

[cougarfreak]

Oh.......they're here. I am about to start my flying car dealership, which one do ya want??? http://static.howstuffworks.com/gif/flying-car-front.jpg





or..........


http://www.retrofuture.com/images/convai2.jpg



Let me know.

[Raiders Army]

What about a rocket pack?

http://www.flying-contraptions.com/rocketman.gif

Here is footage of one in action:

http://www.canosoarus.com/07RocketBelt/Rocket%20Images/Rocket%20Anim.gif

[cougarfreak]

Quit trying to undercut my first sale.

http://seekers.100megs6.com/FlyingCars/FlyingCar.gif

I'll sell you this cheaper than a rocket pack.

[WSUCougar]

What about the giant flying eagles in Lord of the Rings? Does anyone know how much that costs? Do they offer a complimentary drink?
This must be coach class...

http://www.councilofelrond.com/modules/Encyclopedia/pictures/4428.jpg

[sachmo71]

This must be coach class...

http://www.councilofelrond.com/modules/Encyclopedia/pictures/4428.jpg


You wouldn't need an in-flight movie, because all of the blood rushing to your head would eventually make things look pretty sweet.

[Raiders Army]

At least there's lots of leg room.

[Tekneek]

Where the hell are the flying cars? I was sure we'd have them by now.

There is little innovation in the car industry. We could all be driving more efficient less oil dependent cars now, but the manufacturers are sticking to the same old things...in fact, the street vehicles are getting bigger all the time.

[sovereignstar]

FALKOR!!!!

http://www.atelier-bogatu.de/skulp/fuchur%20%20d.r..jpg

Even he's been grounded.

[sovereignstar]

There is little innovation in the car industry. We could all be driving more efficient less oil dependent cars now, but the manufacturers are sticking to the same old things...in fact, the street vehicles are getting bigger all the time.

Shit the technology is out there for cars that get 80-90 miles to the gallon.

[moriarty]

Is the airline industry in its death throes? Or at least the old biggies seem to be on the verge of total collapse. Despite the success of Southwest, the others just don’t seem to have a clue and continue to lose many millions on a regular basis. It’s weird to think of the world’s landscape without major American airlines, but they can’t continue to spiral downward as they are. Strange fate for something we have taken for granted for so long.

I'm not sure what would happen to fill the travel vacuum in their absence...

The entire industry wouldn't go under ... worst case the government would take it over (which probably would be bad for everyone).

Most likely you'll see companies go out of business and/or merger, an increase in ticket prices in the short term, and the convenience factor go down (aka more layovers and other inconveniences). This will drive some portion of the population to alternative travel methods.

But it's all supply and demand. Companies are going bankrupt now because they have high cost structures and have to compete on price. Once enough of the poorly run companies go under, the remaining companies will either be profitable, or they will all raise prices to make them profitable. Take the high pilot saleries for example. Once enough companies (like US Airways) goes under there will be a surplus of pilots with presumably fewer flights. Then pilots won't be able to command high salaries, the strength of the unions decrease, and costs come back down. Whether the companies pass that cost savings on as lower prices or keep it for profits is up to them.

[JAG]

The entire industry wouldn't go under ... worst case the government would take it over (which probably would be bad for everyone).

Most likely you'll see companies go out of business and/or merger, an increase in ticket prices in the short term, and the convenience factor go down (aka more layovers and other inconveniences). This will drive some portion of the population to alternative travel methods.

But it's all supply and demand. Companies are going bankrupt now because they have high cost structures and have to compete on price. Once enough of the poorly run companies go under, the remaining companies will either be profitable, or they will all raise prices to make them profitable. Take the high pilot saleries for example. Once enough companies (like US Airways) goes under there will be a surplus of pilots with presumably fewer flights. Then pilots won't be able to command high salaries, the strength of the unions decrease, and costs come back down. Whether the companies pass that cost savings on as lower prices or keep it for profits is up to them.


Oh, where to begin? First, I've been asked to say that this is JAG's wife posting and not JAG. The government will not take over the airline industry because the industry is in no danger of completely disappearing. The industry provides a needed service that is valued by its customers and will therefore still be able to continue once its management problems are resolved. In the end, supply and demand will even out and a price that both parties can live with will be set.

Many airlines will go out of business but a large part of this is due to the misunderstandings and incompetence of their top executives. The industry is changing and most execs choose to react by trying to imitate Southwest. They are still failing because they don't understand what made Southwest profitable and they keep trying to compete by cutting prices and doing very little with costs.

Pilot salaries will go down but not just because of an increase in the number of unemployed pilots. In the short term, the salaries will be cut too low by management eager for cost savings. After that, there will be a pilot shortage as many of the intelligent people who would otherwise have become pilots realize that they can make twice as much by taking other jobs. In the long run again, the pilot salaries will increase to a level that is near the current industry average for mid-career pilots.

The real problems aren't the pilots but the customer service people who make unheard of salaries for doing very basic jobs. I used to work in reservations for an international airline and believe me, the job does not require much skill. $35/hr for a person to sit at a gate and help you board a plane is ridiculous. The position should pay better than a secretary but not to this extreme. When airlines are able to pay fair salaries to this group, retain intelligent people in management who don't just play follow the leader, and treat all of their employees with respect then the industry will turn back around.

[rkmsuf]

Just Another Girl

cool

[cuervo72]

Hmm, my father-in-law is a retired pilot, and I'd imagine they'd have to cut pilot salaries quite a bit to be able to easily make double that doing something else...

[Raiders Army]

According to Only Gourmet Trivia, American Airlines saved $40,000 in 1987 by eliminating one olive from each salad that was served in first class. Nobody seemed to notice that the number of olives dropped from five to four.

[gi]

According to Only Gourmet Trivia, American Airlines saved $40,000 in 1987 by eliminating one olive from each salad that was served in first class. Nobody seemed to notice that the number of olives dropped from five to four.
Work is that boring huh? :)

[SunDancer]

The airline industry will not collaspe. You'll likely see two, maybe three, of the major airlines go under or be bought/merged. Also, our domestic airline allows only 49% ownership by foreign companies, so that restircts more competition. I know Richard Branson is looking to launch his Virgin low-fare airline in the US, but hes having a hard time doing it.

[moriarty]

The government will not take over the airline industry because the industry is in no danger of completely disappearing.

That's why I said 'worst case'.

[Ryan S]

I don't want the pilots to have their salaries cut. As the old Bob Newhart sketch goes, I want happy pilots in my plane.

[Desnudo]

The airline industry has one of the worst business models. They are heavily regulated, have uncontrollable and fluctuating cost inputs, and have unions everywhere in their labor structure. The only industry better for a long term short in the stock market is Trump Casinos. Compound that with executives who try to follow standard business planning for a non-standard business and you end up with bankruptcy.

Of course I hear United is working on a new device that may save the industry.

http://www.markshields.com/images/prop_replicas/jay_allan_mr_fusion_3.jpg

[Raiders Army]

IMHO Claudia Wells was much hotter than Elisabeth Shue in the Back to the Future movies...

http://www.themakeupgallery.info/images/age/1980s/bttfes3.jpg

Adventures in Babysitting was another matter.

[rkmsuf]

IMHO Claudia Wells was much hotter than Elisabeth Shue in the Back to the Future movies...

Adventures in Babysitting was another matter.

I'd take her up to the lake anytime.

[cuervo72]

IMHO Claudia Wells was much hotter than Elisabeth Shue in the Back to the Future movies...

I'll second that.

[WSUCougar]

But I'd still leave Las Vegas for Elisabeth Shue...

[SnowMan]

As a pilot for a small airline, here's my take. Pilots for the biggies (United, American, etc) are, or at least were, horribly overpaid. The cuts they've had to take are a bit extreme and will balance out in the future. The problem isn't the pilots per se, but more likely labor unions using the economic boom of the 90s to inflate the salaries of pilots, mechanics, flight attendants, ground personnel, and everyone else down to the guy that has to dump the toilets between flights.

As was said, this will all even out in the end, and the government will be happy to throw in our tax dollars to bail out some, or all, of the major airlines in the proceess. I couldn't imagine them allowing a United to just stop flying, the economic impact would be incredible.

[PilotMan]

I don't want the pilots to have their salaries cut. As the old Bob Newhart sketch goes, I want happy pilots in my plane.
:D !

[Mr. Wednesday]

IMO, Continental's successes (up until 9/11 made a mess of everything air travel) proves that it's possible for a traditional airline to be successful.