Too much competition? Too much cost (pensions, benefits, etc.)? Too low ticket-prices? All of the above?
Whatever’s wrong with the airline industry, many carriers need to scrap their current models and start again. Airlines struggle to make money in good times. In bad times, they lose their shirts. The word on the street (possibly apocryphal) is that the industry has, in aggregate, from the dawn of airline time, lost money.
Let’s let the inefficent airlines go bust (again) and start fresh.
AP: KUALA LUMPUR, Malaysia – The world’s airlines will collectively lose $9 billion this year — nearly double the previous projections — and face a slow recovery as the economic crisis saps air travel and cargo demand, an industry body warned Monday.
The International Air Transport Association, which represents 230 airlines worldwide, increased its loss estimate from the $4.7 billion it forecast in March, reflecting a “rapidly deteriorating revenue environment.”…
Revenues are expected to decline by $80 billion — an unprecedented 15 per cent from a year ago — to $448 billion this year, and the weakness will persist into 2010, it said.