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![]() Colin W Kingsbury wrote: Second is the issue of cost structure. No matter how you look at it, running an airline is a hellish business. It's as capital-intensive as real estate, only your main assets are always depreciating. Operating costs are astounding, and not easily adjusted. Pilots, mechanics, FAs, gate leases, etc. all add up very quickly, and it takes years to adjust the formula. So newcomers will always have the advantage because they built their business models around last year's conditions, and not the last decade's. But come ten years from now those newcomers could be in just as bad shape. Look at Southwest. They are doing it right. All the people really want is a seat at the cheapest possible rate. We don't need your fancy clubs and we certainly don't care about boarding the plane 5 minutes before everybody else. Just get to my destination when you say you will and be friendly about it. Interestingly for us, the future is in some ways headed in our direction. Regional jets are replacing not only the Saab 340s and Dash 8s, but MD-80s and DC-9s as well. Many of the new airlines have all-RJ fleets from the ground up. That's because an airline pilot just isn't worth $175K per year. Period. Get a jumpseat ride in an RJ and you'll see a 7 year can fly one. When the computer voice says 10 feet pull the power and the nose up and you land. There's nothing to do anymore. Which is good, that's what makes it safe. |
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