Here’s my casual observation of the American Airline’s bankruptcy. I am certainly no expert but being around airlines for the past 40-years, it is my belief that airlines have never been profitable and nor will they ever make a profit. The basic operations and expectations are about the same as running a local tavern or a health spa. Too vulnerable to unexpected economic changes. And most of all too dependent on governmental and local subsidies.
How many airlines had built their own airport? What airline flies without the aid of the FAA and air traffic control? Who inspects the domestic airlines for airworthiness? Surely not the airlines themselves.
After nine eleven, who bailed out the airlines? Basically all the above answers to our questions are, we the taxpayer. Therefore, the airlines are a socialized entity. Operating more like a non-profit than for profit.
So, why bankruptcy? Why big bonuses at the top? Why do the workers at the bottom get shafted while the corporate money mongers get rich regardless of the airline financial condition?
If American Airlines had filed bankruptcy in Europe, it would be required of them to shut down. Go out of business. Sell off all assets and pay off creditors. Just that simple.
However, here in America we do things differently. We protect the interests of the corporate owners and shareholders while dumping the bottom tier workers. Thus adding to the job-killing craze. That why they call it Chapter Eleven Protection. Protecting the financial interests whiles sacrificing the lower paid, lower grunt worker and their pension and benefits.
If America Airlines wishes to continue operation, they should take on the Southwest Airline model. Trim to the bare bone. Fly smaller fuel-efficient aircraft. Cut routes. Perhaps cut either or both European and Asian routes. Maybe even shut down South American routes as well. Then raise prices only the business and the very rich can afford. No more running an airline with the deep discount mass marketing pack’em in Walmart model.
And then there is the airline shell game of assessing dozens of hidden fees. What a Con game. Bate and switch. An airline ran by carnival workers. Well, lets not get started on the airline’s horrible customer service reputation just yet.
Nonetheless, to believe airlines can make money is a fairy tale notion. Play the Superball lottery instead. You have better chances of increasing the bottom line. I’ll take two tickets thank you.
All in all, we would be better off if we had only one airline. Let them charge what they want and let the rest of us drive or take the train. Maybe even take a cruise ship to Europe. How about just stay home. Just Skype your sales prospect.
After all, who wants to wait in those torture chambers known as security lines at the airport? Take off your shoes! Take off your belt! Take off that silly smile! Put all your earthly belongings in this plastic tub! Extend your arms out like this. I’ll touch you. You don’t touch me. Stay in line! Look smart and don’t cross your eyes! And bla bla bla…
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So, what's your take on this?