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Airlines aren't very scaleable. When demand increases, thay can't quickly add aircraft and gates (and pilots). Likewise when demand drops, they can't reduce much other than eliminate some flights, but they're still paying for the planes and gates. There are also high fixed costs like maintenance facilities. Btw, there is an aircraft "grave yard" near Mojave, CA. I've seen it. Hundreds of big jets, 747's, etc. sit idle I think eventually US airlines are headed to some kind of government support like other countries.
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GO BIG BLUE! Last edited by JWS; 04-12-2008 at 06:43 PM.. |
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