Originally Posted by
iPilot
I think the big wrench in this whole argument is that the US airline network will not stay at or above its current capacity. This whole system has been set up over the last 10+ years towards the casual traveler market. However, that is unsustainable as the casual traveler is not going to be willing to pay what it takes to make the business profitable. Meanwhile, the high end traveler has moved to business jets.
The airlines will have to shrink to the point where they can make money on what few planes are left flying. The question is what will that percentage of our current capacity be? 20%? 50%?
Sure lots of airline guys are ancient and if the airlines stay their current size there will be huge amounts of hiring. But what if this whole thing goes the way AA did after the TWA merger? If the airlines shrink down 50% no matter how young we all are it will be near impossible to see that golden major job in any reasonable amount of time. Maybe in 20 years it will improve but how many of you are willing to sit on reserve or furloughed from your regional just for the chance that far down the road?
You're forgetting that the industry is running at over 80+% capacities and there are many airlines who are turning profits targeting the "casual traveler market" (AirTran, JB, Spirit, etc).
There will not be a reduction of 50%. Maybe another 10%-15%, add that to the reductions mainline has made over the last year or two and the total reductions should be around 20%-30%. Once they stabilize you'll see airlines start to dig in and strengthen their foundation so they can slowly grow. They’re will be another BK or two and a few consolidations but total capacity nationwide can’t slip much further.