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Monday, October 11, 2010

Stop the Madness - Some simple steps toward profitability

Today I have been working on finalizing a market assessment report for a client and I have to tell you that I am once again astounded by our very own airline industry. 

Please don't get me wrong.  I like to fly.  Well, not really.  But I used to like to fly.  We had legroom, hot food, decent wine and yes, upgrades to first class. 

That was back when the airlines were making money and ....no wait.  They have never made money.  Not if you count cumulative losses as an industry. 

The U.S. Airlines have lost a cumulative total of $41.9 billion since I got into the industry in 1979.  No, I am no economist, but just exactly how long can this fly?


I have been known to be quite vocal on the topic of distribution, which is presumably why you are here reading my blog.  So I will just highlight a couple of blog entries on The Beat that address my observations and ideas:

Agency Distribution - Do the math!

Hey Mr. Arpey, How's it working for you?  Are you making it up in volume?

Revisit the Fare Structure

One day I'll get a call from an airline who would like to hear my ideas.  That would be right after the GDSs call me to help them with a drive market strategy to help the industry serve the 85% of the billion U.S. travelers that drive instead of fly.  

..... don't worry about me.  I'm not holding my breath.
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