Quote:
Originally Posted by DrewDizzle
The market is working halfway because some airlines still require bail outs when, if the market and free economy were left to it's own devices, the businesses would fold, and start-ups would fill the void with fresh ideas, smaller overhead, and the potential employee pool would get more competitive. I, by no means, believe that $10 tickets should be the norm.
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But Continental, per your assertion in your first post is not inline with those carriers.
The problem in aviation is start-ups don't usually have smaller overhead.
Some startups save on union costs but they normally pay MORE for fuel because they don't have hedges. There are not a lot of "fresh-ideas" in aviation. Airlines make big money of business travs which LCCs cannot often market to with no frills and no lounges and service to secondary airports. Besides the "bailout" other airlines got post 9-11 was often in the form of low interest loans.
I did not agree with all of them, mind you, and there is room for one of the legacies to fail or be consolidated, but it will most likely be Delta swallowing united or Northwest. That will help with domestic capacity. We shall see if skybus lasts this whole year. That "fresh-idea" is losing millions even with decent load factors on some flights.
Ciao,
AWACS