You are currently browsing the Neil Krey’s Waypoints weblog archives for September, 2007.
September 9, 2007 by neilkrey.
As you probably know, a debate is raging about how to change the way we fund the FAA. The airlines are promoting a plan that relieves them of most fees and charges – passing them on to their passengers and to general aviation.
Represented by their industry group, the Air Transport Association, they are lobbying for yet another round of cost cuts. In the recent past, they have robbed their employees, vendors, and stockholders in their efforts to reduce costs to match their artificially low prices. Now they are casting business jets as the bad guys – responsible for delays and all manner of ills that cost the airlines money. The balance sheet, of course, is the issue. The airlines don’t seem to consider their lack of ability to provide good service to their customers a problem.
I’m sure it is no secret that I don’t hold the airlines in particularly high regard. For decades they have proven they are unable to solve the most fundamental equation of business: Profit equals price minus cost. The number of airlines that have failed, or have passed through bankruptcy, is astounding. Read the rest of this entry »
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