4/15/2005

Gas prices and issues the airlines are already dealing with

Gas prices are affecting consumers at the pump in more than one way. The airlines are another often used form of transportation that consumers are going to be seeing a difference in price. Of course these pressures are also affecting the airlines in other ways. The airlines having been battling with bankruptcy, pressures from employees, and cost, the gas prices are only making these dilemmas harder to deal with. In the article, a lot of employees are fighting with the airlines about higher paid executives not taking pay cuts. Gas prices are going to make the fight for survival in this industry all the more challenging. Do you think the rise in prices will detour you from taking any future flights.



Actually totally random question, but was the airplane food ever a factor- It ceases to amaze me that people complain about not getting a meal on the plane. Why would people want the airplane food? I’m sorry, I just always wanted to know that.

1 comment:

Dr. Tufte said...

Frankly, the problems for the airlines as an industry would be solved if some of the firms were allowed to go out of business.

What we are seeing here is a very strong signal that free exit needs to take place. The problem is that there is a "too big to fail" mentality about airlines. Until that changes this industry will not be anything more than a basket case.