Johann Galt

What's Really Wrong With The Airline Industry - And Can It Be Fixed?

What the public wants, or is getting is immaterial. Raised prices = reduced demand = reduced flying. The problem for the airlines is that unlike other businesses, the airline must maintain trained personnel to meet anticipated demand. There is a lag time before the airline can attempt to adjust to the real vs. anticipated demand. During this lag time, the airline spends money.

Thus the downward spiral results as airline management chases its tail in a game it can't win without a booming economy. This industry needs a new economic model or genius entrepeneur with a new take on generation of profits. Otherwise, the "golden age" is over.