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Ask the pilot
As hundreds of planes are grounded, the FAA faces an identity crisis. Plus: What does a rash of airline bankruptcies mean for the future?
By Patrick Smith [2008-04-11]

  • AMR stock is up 7.63% today

    That's pretty good for an airline that's not operating. I think AMR discovered that they can make more money not flying than flying, at least in the short run. Once you take money from people and then don't deliver any service and you don't have to pay salaries or spend money on jet fuel things can look pretty good for them. In this way, airlines operate like utilities. A flat predictable stable income stream more or less, and and stable expense stream. Just don't spend any money and your earnings look great. The old NYNEX phone company learned this 20 years ago when they went on strike and had their best quarter ever in the history of the company.

    If I ran an airlines I'd take thousands of planes offline for 'inspections' too. What are people going to do? Complain?

    -- Electro Robot
    [Read Electro Robot's other letters]
    Thursday, April 10, 2008 06:07 PM
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