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Hello cwest,
take your point but...the main difference in strategy betw current
winners and losers seems to be whether they are in a hub-spoke
structure or point-to-point. apparently the former requires more
aircraft. so for now one strategy pays off and another doesn't. my
allegation about competence of management is that if one's strategy
can't weather the predictable storms, why adopt it in the first place?
why didn't United adopt the Southwest/Blue Sky strategy? or more
realistically anticipate it and adjust accordingly?
Best regards,
Jim Johnson mailto:jejohn@xxxxxxxxxxx
--
Wednesday, October 16, 2002, 9:59:15 AM, you wrote:
c> To a considerable extent I believe you're over generalizing.
c> As in any
c> "suffering" sector there are leaders or profitable
c> competitors.
c> Comparing the operating and/or business models of the better
c> performing
c> airlines you'll discover the differences. Southwest and
c> United, for
c> example. If there aren't any winners in a sector, then it's
c> more of a
c> market issue.
c> -----Original Message-----
c> From: Jim Johnson [mailto:jejohn@xxxxxxxxxxx]
c> Sent: Tuesday, October 15, 2002 9:17 PM
c> To: Omega List
c> Subject: OFF TOPIC: airlines
c> Hello Omega,
c> I've had several conversations with friends recently
c> about why the
c> large airlines are so screwed up and going/gone bankrupt.
c> But no one
c> has a really good explanation for why they are so bad and
c> why they have
c> made not money in 15 years or so. Oil doubled--OK.
c> interest rates have
c> generally been decreasing. Personnel costs--all businesses
c> have that.
c> if your business was so dependent on fuel costs, wouldn't
c> you be the
c> world's best at hedging; same goes for interest rates. Or
c> have
c> contingency plans for something that is virtually
c> inevitable--oil price
c> spikes, rate increases, recession?
c> It sure looks to me like just plain management incompetence.
c> Anybody have an informed opinion about this?
c> --
c> Best regards,
c> Jim Johnson
c> mailto:jejohn@xxxxxxxxxxx
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