Originally Posted by
Free Bird
If the weak were truly allowed to die, then maybe it could work in it's current form. That hasn't happened and probably never will. A de-regged industry doesn't work and probably never will.
Even a regulated industry doesn't work well. I may be wrong, but I think the airlines were somewhat subsidized during regulation.
The big question that needs to be asked is whether or not the industry itself can ever be profitable just by the very nature of its existence. If you add up all of the years that the airline industry has been in existence and compare revenues to expenses, one will find that the historical data shows an overall loss for the industry.
If the weak were truly allowed to die, then maybe it could work in it's current form.
On paper and according to the principles of the free market it should. However, three variables could negatively affect an otherwise perfect system.
First, expenses vary and drastically affect the bottom line. Fuel prices and salaries come to mind.
Second, demand. You need to fill seats and thus necessitates the need for people to purchase those seats. Business professionals still need to travel, but many choose alternate methods of meetings - i.e., teleconferencing. People still like to fly for vacations, but when money is tight many choose not too.
Third, you need good management to run the airline profitably. All other variables could be perfect, but poor management can run the best company into bankruptcy. Good talent in knowing how to successfully manage the store is absolutely critical.