Re: Poor Management Blamed For Airline Startup Failures

David Long (
Fri, 10 Jul 1998 15:24:51 -0400

> Of the carriers that filed for Chapter 11 bankruptcy in the
> * 97% had senior executives who had been involved in a previous
>Chapter 11;

What of the carriers that didn't file Chapter 11?

I wouldn't be surprised if the airline business, like non-pyramid MLM
schemes and the prevalance of surnames in a population, consists of
early failure for most entrants and exponential payoff for those that
manage to survive for any length of time.

> According
>to the airlines themselves, the top reasons for failure included
>unrealistic operational plans (including inability to establish a
>viable route structure), excessive debt, escalating costs, inadequate
>traffic and economic downturns.

So what are the top reasons for success? My predictions: aggressive
operational plans, sufficient leverage, investment in plant & people,
sufficient capacity for "excess" traffic, and economic upturns.


Re: ObTrivia:
Hmmm... I was recently told that I couldn't get a FC seat on IAD-DEN-SNA.
Should I have been clearer that I was willing to pay in hard currency?

One notes that, despite the best efforts to keep the de langue francaise
sans neologiste anglais, Air France denominates benefits for their
Frequence Plus program in "Miles". If the revolution can be treated so
lightly, should we not give up on the ECU in favor of freely convertible
FF miles?