After the dismal financial performance by United Airlines last quarter, I’m sure questions about the airline’s viability in the-not-so-long-term are swirling in airline circles.
If United were to disappear —
• Capacity problems for all other airlines would disappear overnight.
• Low cost carriers would rush to fill the profitable routes.
• The legacy carriers could reverse their capacity shrinkage and perhaps begin making a profit.
• International routes would open to other airlines.
• However, the big airlines are in no position to expand their domestic fleets or route structure.
• O’Hare Airport traffic would drop to reasonable levels.
• In the short term, the coming pilot shortage would be delayed another five years.
An airline world without United Airlines doesn’t look so bad.
What do you think?
