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To a considerable extent I believe you're over generalizing.
As in any
"suffering" sector there are leaders or profitable
competitors.
Comparing the operating and/or business models of the better
performing
airlines you'll discover the differences. Southwest and
United, for
example. If there aren't any winners in a sector, then it's
more of a
market issue.
-----Original Message-----
From: Jim Johnson [mailto:jejohn@xxxxxxxxxxx]
Sent: Tuesday, October 15, 2002 9:17 PM
To: Omega List
Subject: OFF TOPIC: airlines
Hello Omega,
I've had several conversations with friends recently
about why the
large airlines are so screwed up and going/gone bankrupt.
But no one
has a really good explanation for why they are so bad and
why they have
made not money in 15 years or so. Oil doubled--OK.
interest rates have
generally been decreasing. Personnel costs--all businesses
have that.
if your business was so dependent on fuel costs, wouldn't
you be the
world's best at hedging; same goes for interest rates. Or
have
contingency plans for something that is virtually
inevitable--oil price
spikes, rate increases, recession?
It sure looks to me like just plain management incompetence.
Anybody have an informed opinion about this?
--
Best regards,
Jim Johnson
mailto:jejohn@xxxxxxxxxxx
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