The Real Crisis

The Wall Street Journal, in an August 12th piece by Heidi N. Moore, sums up the real problems in the airline industry succinctly. And if you guessed rising oil prices, you’re only seeing part of the picture.

Ms. Moore explains:

Rising oil prices, of course, hurt the airline industry, but those stratospheric costs also provided a sort of cloud cover for the industry’s essential dysfunction. Intense competition, labor disputes, absentee parenthood from Washington regulators - all have combined to put the industry in a position that requires deeper thought.

In addition, the airline industry has a few fundamental issues it desperately needs to address. Various reports have found airlines’ service quality and passenger satisfaction levels to be plummeting. While receiving billions in taxpayer subsidies, airline companies continue to divest from its workforce and pursue outdated, shortsighted business strategies that are ill-prepared for today’s fuel conscious economy.

Ms. Moore, quoting an industry expert, sums it all up:

“No leadership, no policy, no strategy, everyone blaming the other… all circling Foggy Bottom while the industry goes down the Potomac.”

Click HERE to read the entire article.

photo credit: Cubbie_n_Vegas