...look fairly significant, at least from the first two major airlines to report October operational results, United and Continental.
United flew 12.6 percent fewer domestic seats in October, and reported 10.3 percent fewer domestic revenue passenger miles, compared with October 2007. Continental flew 10.8 perecent domestic seats, with a 10.2 percent drop in revenue passenger miles.
As I keep saying, we are witnessing a fundamental shrinking of our national air-transport system, and as airline executives keep saying, it's a permanent situation.
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By JOE SHARKEY
I don't accept that it's a permanent situation. It will last until airlines think it makes economic sense for them to add capacity, most likely after a period of protracted increased demand. I think it would be more accurate to refer to it as a cyclical situation that isn't likely to change for quite some time.
ReplyDeleteI don't accept that it's a permanent situation. It would be more accurate to refer to it as a cyclical situation that will require a period of protracted increased demand to change. Once airline management believes that it is their advantage to increase capacity (and the increased profitability from higher traffic and cost adjusted fares provides the wherewithal to finance it) they will add capacity.
ReplyDeleteAs an Airline Captian I see this cut in capacity as just the first step. I believe there needs to be a 30% reduction and 50% fare increase to return the airline to profitability. This will also cure all of our ATC problems as well. It is absurd that a person can fly from NY to Fl. cheaper than taking a bus. I find it offensive that the travelers are complaining for more FREE UPGRADES while our crews are on the verge of recieving food stamps.
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