by emersonbiggins » Tue 27 May 2008, 17:37:07
$this->bbcode_second_pass_quote('smallpoxgirl', 'I') think it's a mistake to think that the airline industry is going to demise. It's going to undergo upheaval, contraction, and consolidation and people are going to have to rethink their business model, but the airlines aren't going away. Not any time soon. ... Others, for example Toyota and Southwest Airline, will reap the profit.
If the airline industry contracts by my WAG, say 50%, and the average ticket prices double or triple (well on their way now), how can that be seen as anything but a demise?
Their business model was ill to work with $15/bbl crude, requiring bailouts to the tune of billions to stay solvent, and using the revolving door of bankruptcy protection to paper over red ink. And now with oil well over $100/bbl, it's hard to believe that the subsidies and/or ticket prices can increase enough to sustain revenues, much less turn a profit (something airlines are want to do anyways).
Like misterno sez, go Greyhound.