"Plane Wreck" WSJ Article

[C150J]

http://online.wsj.com/article/SB1208...s_featured_lsc

Thoughts?

[tgrayson]

Originally Posted by C150J

http://online.wsj.com/article/SB1208...s_featured_lsc

Thoughts?

Interesting idea that there may be industries that are incapable of establishing equilibrium. It explains the airline industry a lot better than "stupidity." If it's true, then it's also ironic that at about the time that almost everyone accepts the idea of free markets, there is suddenly a realization that some markets are best left unfree.

[KW]

He poses a very interesting idea, and I think it would go a long way to fixing the ills of the industry. Especially with oil the way it is. Instead of the airlines competing on price, they could go back to competing on quality of service.

His statements regarding safety are just an example of correlation without causation. Airline management will always try to spend the least possible on training, maintenance and safety equipment, while working crews and ground personal the max amount permitted by law.

[tgrayson]

Originally Posted by KW

His statements regarding safety are just an example of correlation without causation.

Agreed. Classic "Post hoc, ergo propter hoc" reasoning fallacy. I'm skeptical that competitive pressures have much at all to do with safety, since it's a generally accepted truism that "safety doesn't sell." Improved technology probably should get the most credit.

[Minuteman]

I liked this article as soon as I read, "...because businesses in a bad way must do something, and merging is something.," except it should have read "...believe they must 'do something'..."

It's exactly this kind of thinking that got AirTran all hot and bothered about taking over Midwest the last time Delta "did something" close to their home turf. I just hope they brought their own bail money this time if they're going to "do something" crazy under the threat of a larger Delta.

[Maurus]

Originally Posted by KW

He poses a very interesting idea, and I think it would go a long way to fixing the ills of the industry. Especially with oil the way it is. Instead of the airlines competing on price, they could go back to competing on quality of service.

Continental did that to an extent with their commercials of flight attendants throwing everything out of the aircraft. I would think it helped them not get hit with having to file for chapter 11 while all the other airlines were doing it.

[Minuteman]

Originally Posted by Maurus

Continental did that to an extent with their commercials of flight attendants throwing everything out of the aircraft. I would think it helped them not get hit with having to file for chapter 11 while all the other airlines were doing it.

Well now there's American at the other end of the spectrum. They didn't go into bankruptcy, and sometimes I think they're trying to figure out how to get passengers to bring their own lawn chairs and a rope.

[Maurus]

Originally Posted by Minuteman

Well now there's American at the other end of the spectrum. They didn't go into bankruptcy, and sometimes I think they're trying to figure out how to get passengers to bring their own lawn chairs and a rope.

Ha, true