With Delta's recent announcement that it too is likely facing bankruptcy, any thoughts on the aviation industry? As a consultant, I have quite a lot to say on the matter, but most of it you have already heard from others.
The most important aspect of this, politically, is should the government do anything to save these airlines? I don't think so, but if you have a compelling argument (such as national infrastructure, national security, etc), I'd like to hear it.
Otherwise, it looks like Ted, Independence, jetBlue and Southwest are the future for most domestic air travel -- not an ultogether unpleasant future. I also predict the emergence of more 1st class or business class only flights (a longtime prediction of mine).
The entire sector may yet shake out according to price point, just like luxury goods. Rather than fly a mix of classes, each airline may customize its service offering to a single class of passengers, attempt to price competitively within its class and then maximize marketshare.
The firms could then gain economies of sameness (jetBlue, SW) by using the same type of aircraft fleet, concentrating on fewer, but more lucrative routes, and finally becoming a branded lifestyle carrier, much like driving a Mercedes is a lifestyle statement.
Thoughts?
US Airways Could Fail Next Month (washingtonpost.com)
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