The Future, As I See It, List:
1. AIRLINES: Most of the airlines in our Country have been operating in and out of the “red” for the last several years. That means that they are loosing money and are on the verge of going out of business at all times. The “legacy carriers” (large airlines that have been around for many years) have had profitable years, and unprofitable years throughout their history of operation. This is a result of “normal cycles” in our economy. This applies to all businesses, not just airlines, and it also applies to you and me. “The pendulum continuously swings”. Some of the original, largest “legacy carriers”, e.g. Pan Am, TWA, Eastern, as well as many other smaller carriers finally went out of business or were consumed because they just did not have the financial resources to continue any longer.
This process continues today because of continuously rising fuel prices, and the downturn of the economy. With revenue (money taken in) insufficient to offset expenses (bills that have to be paid) the airlines continuously try to “cut costs”, (as do all businesses). Usually, the largest expense is labor, (although it may soon be fuel), so labor expenses are the first to cut. The number of employees is reduced, and wages are cut. After all labor reductions possible have been made, the companies must look for other cost savings. Since they seem to have very little control over the price of fuel, (also a very large expense), they look next to another very high expense, the cost of maintenance.
The airlines, however, can’t stop doing maintenance, and they haven’t.
It’s important to understand that the airlines are continuing to do all maintenance, and that airline travel is, and probably always will be, the safest way to travel. The airlines voluntarily do a great deal of maintenance that is not “required”, and do all of the maintenance that is “required” by the FAA, (Federal Aviation Association), the governmental agency that oversees their daily operations and maintenance.
We have two problems:
1. As we travel by air around our Country we see (a few, not all), “disgruntled employees” who complain that they are now over worked and under paid. They say they must work longer hours, for less pay, and do other ex-employees jobs too.
2. I am slightly concerned that if we allow this “red ink” situation to continue, that eventually even some of the “voluntary” maintenance (e.g. cleaning and polishing, etc.) could be “put off”. It would not be in any way dangerous, but still not desirable.
I have two solutions: They can choose which one they want, or we (you and I) will choose for them.
1. Have the airlines voluntarily get together with me to increase airline fares to the point of profitability. If this is currently illegal (anti-trust), we’ll ask Congress to change the law!
2. Re-regulate the airlines, and we will increase airline fares to the point of profitability.
Elimination Of Money