The sky is falling, the sky is falling?

Oct. 1, 2004
Or so goes an old children's story

Or so goes an old children's story

October 2004

Well of course the sky wasn't falling (for those of you who have not read the children's story, Chicken Little, it was actually an acorn falling from a tree) but it is a good analogy for the aviation industry right now.

We see a pretty grim picture of the airline industry facing fuel costs, hurricanes, the outsourcing trend, bankruptcies, job losses and security issues at an all-time high. Is the story right or is it just the continual business cycle we all go through?

We all know the sky is not falling, but for some of the legacy airlines and their employees, it could feel that way. The airlines have struggled in the last four years and competition dollar-for-dollar with low-cost carriers has made it worse.

We've all been there, we each have a price on the product or service we provide and we all have competitors. The newer airlines have found their niche, offering lower fare flights in limited areas and at limited schedules. Wouldn't the legacy carriers be better off not competing on that level but trying to excel at what they do best? If they continue offering their large numbers of flights, varied schedules, more options with better service they can ask for and get their higher fares. The flying public will learn that flying safely, efficiently and on the passenger's schedule is worth the extra money. None of us can be successful by cutting prices and if we offer quality service and safety, we don't have to.

As we continue moving forward, fuel prices will decrease, jobs will stabilize and outsourcing might be the "new insourcing" trend. One thing is true, the sooner the airlines shake out how they'll proceed, the better off we all are.