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#1
08-20-2005, 07:35 PM
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Airlines losing money or bankrupt
I don't really understand how these companies can lose so much money in such a short period of time. If tickets were cheaper more people would fly.
How can these companies be going bankrupt or losing money? 
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#2
08-20-2005, 07:44 PM
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Re: Airlines losing money or bankrupt
[ QUOTE ]
How can these companies be going bankrupt or losing money? [/ QUOTE ] Because they're poorly managed? That's partially unfair. Notice the "old" airlines are the ones in trouble - the ones that were founded in the era of regulation. They haven't adapted. Part of that is because their unions haven't allowed them to adapt. The newer airlines without regulation-era baggage are doing OK.
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#3
08-20-2005, 07:44 PM
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Re: Airlines losing money or bankrupt
bad management, inability to adapt to changing conditions, poor business models, insane pricing, poor marketing, ...
[img]/images/graemlins/smirk.gif[/img]
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#4
08-20-2005, 07:47 PM
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Re: Airlines losing money or bankrupt
I think unions are a very minor part of it. And their inability to deal with unions goes back to the bad management ... Many unionized industries have had to adapt and change, and they managed to do it by working with the unions or overcoming it, not by going broke and crying about the "evil union".
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#5
08-20-2005, 07:48 PM
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Re: Airlines losing money or bankrupt
Sounds good...those are the answers I was looking for...I had no one to ask around here and I knew I could get an educated answer in the politics section.
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#6
08-20-2005, 07:52 PM
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Re: Airlines losing money or bankrupt
Since the beggining passenger flight has generated a negative return on capital.
Mack
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#7
08-20-2005, 07:55 PM
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Re: Airlines losing money or bankrupt
[ QUOTE ]
I think unions are a very minor part of it. And their inability to deal with unions goes back to the bad management ... Many unionized industries have had to adapt and change, and they managed to do it by working with the unions or overcoming it, not by going broke and crying about the "evil union". [/ QUOTE ] I dunno, maybe we should pay pilots minimum wages, and have them collect the tips 5 mins before landing, 'ladies and gentlemen please come forward to the tipping area I am afraid we are currently experiencing some tubulance and 3 of our engines have stalled, thank you for flying aeroflot'. Mack
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#8
08-20-2005, 07:55 PM
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Cutting corners
[ QUOTE ]
The "old" airlines are the ones in trouble - the ones that were founded in the era of regulation. They haven't adapted. Part of that is because their unions haven't allowed them to adapt. The newer airlines without regulation-era baggage are doing OK. [/ QUOTE ] The new comnpanies are competing somewhat unfairly with the old ones in terms of maintenance and safety costs. Do I have to elaborate?
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#9
08-20-2005, 08:11 PM
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Re: Cutting corners
[ QUOTE ]
[ QUOTE ] The "old" airlines are the ones in trouble - the ones that were founded in the era of regulation. They haven't adapted. Part of that is because their unions haven't allowed them to adapt. The newer airlines without regulation-era baggage are doing OK. [/ QUOTE ] The new comnpanies are competing somewhat unfairly with the old ones in terms of maintenance and safety costs. Do I have to elaborate? [/ QUOTE ] Yes, because although I agree with you much of the time, I'm not sure you nailed this one. -ptmusic
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#10
08-20-2005, 08:34 PM
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Re: Cutting corners
OK.
Always within regulations, the cut-price airlines (which is what I was referring to by the term "new airlines" because the other "new" ones are just mergers) are shaving costs by getting around proper maintenance and safety precautions. They are "assisted" in this endeavor by cutting down on various supporting jobs and hiring some mechanic and pilot jocks/hot shots, who are then encouraged to engage in cowboy acts. The Helios Airline tragedy last week was, it appears, the outcome of such practices. The upshot (for the company) is that the plane leaves on time -- and flies cheaply. Meantime, stodgy old foggies such as British Airways or Qantas will delay a plane for an hour making sure.
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