airbusdriver

Fixing the Airlines: Reconfigure or Reregulate

Spinning off the international aircraft and routes of Delta and Northwest into a separate airline just wouldn't work. International only airlines just don't work - they need the domestic network to feed them. Take for example Pan Am which lacked a domestic structure and died a slow death. NWA merged with Republic for this same reason. In addition, the labor issues that arise from such a deal are worse than a full scale merger. Who who go with the part of the airline that is spun off and who will stay to be hired at the bottom of someone else's list. The sell off of Pan Am's pacific routes to United is an example of the difficulties that arise in this regard. You're right about the use of bankruptcy as a business tool by management in the industry. There used to be a stigma associated with filing but not so anymore. The fact that the recent round of bankruptcies has produced larger than otherwise pay days for emt's at the airlines just made the decisions even easier.