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Experts: Too Many Carriers In Air Industry

700UW

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Experts: Too Many Carriers in Air Industry
Saturday May 21, 8:33 am ET
By Matthew Barakat, AP Business Writer
Merger Boosts Bankrupt US Airways, but Industry Still Has Too Much Capacity, Analysts Says

McLEAN, Va. (AP) -- Bankrupt US Airways may have saved itself by agreeing to merge with America West Airlines, but it does little to address what many in the industry believe is a fundamental problem: too many carriers offering too many flights.

Click for Story (Yahoo)
 
700UW said:
Experts: Too Many Carriers in Air Industry
Saturday May 21, 8:33 am ET
By Matthew Barakat, AP Business Writer
Merger Boosts Bankrupt US Airways, but Industry Still Has Too Much Capacity, Analysts Says

McLEAN, Va. (AP) -- Bankrupt US Airways may have saved itself by agreeing to merge with America West Airlines, but it does little to address what many in the industry believe is a fundamental problem: too many carriers offering too many flights.

Click for Story (Yahoo)
[post="271737"][/post]​
maybe it won't fly as scheduled???
 
Southwest chief executive Gary Kelly, speaking at the airline's annual meeting this week before the merger was announced, had said that shedding 50 planes in a US Airways-America West merger could be a positive development and the start of an industrywide consolidation.


WN is adding 34 planes to their fleet this year and another 34 next year. So in about 18 months, WN alone will have replaced the 50 airplanes we are shedding. That doesn't take into account the expansion programs of FL, B6, NK, FlyI, Virgin America and anyone else.
 
MarkMyWords said:

WN is adding 34 planes to their fleet this year and another 34 next year. So in about 18 months, WN alone will have replaced the 50 airplanes we are shedding. That doesn't take into account the expansion programs of FL, B6, NK, FlyI, Virgin America and anyone else.

USAirways Fan adds:

It seems as if there is a double standard. When a legacy carrier adds seats, it's bad for the industry. When a LCC does so, no one says a word.
 
LOL.. maybe some of the people I have been discussing this very issue with will start to believe me if they read it enough times...

The airlines are doomed for failure in the long run in an un-regulated market.

Dont listen to me, just ask Warren Buffet. Airlines are not the place to be for stable careers, or profits.
 
why dont soem also say that these air carriers also have too many mgrs? it seems to be a perfect fit for an industry they say is overcrowded!!!
 
usair_begins_with_u said:
LOL.. maybe some of the people I have been discussing this very issue with will start to believe me if they read it enough times...

The airlines are doomed for failure in the long run in an un-regulated market.

Dont listen to me, just ask Warren Buffet. Airlines are not the place to be for stable careers, or profits.
[post="271804"][/post]​
I agree. During regulation, you had multiple airlines to choose from and working for an airline was a great job which was secure (unless you were junior) and ticket prices were not unreasonable. The government deregulated but it won't let the industry take its natural course (consolidation). I beleive that if the government got out of the way, there would be 2 or 3 legacy carriers and about 3 or 4 "LCC" carriers. This would help the industry return to sustained profitability.
 

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