American, Delta, United, and US Airway have either flirted with for filed for bankruptcy in the past 18 months. To provide some guidance in these tough times, Forbes suggests 10 Ways to Fix the Airline Mess.
Of the 10 suggestions, 8 are Repeating the Same Action, Expecting a New Result, – have the US government bail them out.
First off, this strategy have been attempted to varying degrees by the steel industry, the auto industry, the citrus industry (“There are a lot of people in Iraq who have never had orange juice”), oh, and yes the airline industry.
Secondly, a bail out by the US government is not a sustainable response to poor management or shifting market conditions. An effective solution is to listen to frequent fliers and return the mystique to jet travel. Wait, NetJets and Citation Shares have the luxury market and are doing well.
The Point-to-Point (vs. Hub) model seems to be working real well for at least two airlines not flying in red ink.