US Airlines' Recurring Nightmare

In this article the author discusses the way in which economic problems negatively affect United States airlines. While international carriers seem to weather economic shock intact, lack of management foresight in the U.S. means that airlines face serious problems during periods of economic downturn. Despite recent success, skyrocketing fuel costs have put many airlines into “survival mode,” projected to continue at least through the end of 2008. Market differences between the U.S. and other countries puts domestic airlines at a disadvantage thanks to factors such as a high proportion of business from lower yield short haul routes, as well as a more mature air transportation market, which both contribute to the airlines’ inabilities to cover the cost of capital. Despite these economic problems, they continue to build networks aimed at competing with more successful airlines instead of focusing on particular niche markets.

Language

  • English

Media Info

  • Media Type: Print
  • Features: Photos;
  • Pagination: pp 30-32
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 01114132
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Aug 20 2008 4:14PM