The airlines are experiencing some rather interesting economic times in the transportation industry sector. Air Cargo is up by a huge percentage and airliner passenger counts are up too. The average loads of passengers are about 80% of maximum seating and this is a very good thing for airlines. Of course fuel prices are also up and although they can pass much of these costs onto consumers they must still find ways to cut costs and therefore the airlines are looking for more ways to increase revenues you see? But what can a badly damaged and economically troubled industry laden in debt do to dig themselves out of the holes of the last few years? Well a little of everything and any thing, which will improve their bottom line. Indeed they are doing all that and more, but is it enough and as soon as they start making additional revenues will they then hedge their bets and buy more efficient aircraft like the new composite 7E7 or will unions demand more money and take all the profits in increased benefits and higher pay. After all the airlines did negotiate down employee pay during the turbulent times and they are certainly not out of the storm yet. The question I have will the Unions work with airlines as they recover or will they immediately move to go get all that revenue right before the airlines are able to build cash reserves in time for the next economic downturn? Consider all this in 2006. |
