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Old 07-22-2013 | 11:10 AM
  #22  
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galaxy flyer
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Joined: May 2010
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From: Baja Vermont
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While I don't disagree with the postings entirely, the auto industry had a few wrinkles. The UAW thought getting the Japanese here would "level" the playing field by raising their costs to UAW levels since the UAW would organize them. It didn't work out that way. The Japanese and the Koreans moved into the South where they found lots of people who would work happily for less than UAW wages and not vote in the union. The companies loved production in the US especially with the weak dollar. The Congress didn't vote on this outcome, but they love it just the same. Jobs in a Congressman's district are all good, no matter the boss.

Look to Europe of all places for the future. Ryan Air, Easy Jet and now Niporwegian ULH maybe the future. Contracted pilots, individually who pay for their training; foreign pilots based in Asia buy flying thru Europe and EK-like operations maybe next. International flying by US and EU lines is going to be severely damaged or killed by these new operators. Look at QF's ongoing disaster and essentially taken over by EK.

I'm not convinced there is enough money to see the foreign lines invade the US domestic market, but if they can kill the profitable international flying, the domestic market will be hard pressed to be profitable. SW, with its contracts and fares, has created an image of inexpensive travel, but also an umbrella for the likes of Spirit, Jet Blue and the like to work under. They can offer loads of cheap seats with many willing to work for less than ALPA wages.

Imagine one of those combining with EK to provide one service, domestic and int'l. Frightening!

GF
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