A new study shows that if oil prices remain at their current levels, all the major airlines in this country will be forced into bankruptcy. While they'll recover in some sort of fashion, it's become abundantly clear that the whole industry is very close to entering a death spiral of sorts. When airlines have to resort to charging people to check baggage on flights, the pinch is definitely hurting them. Their last gimmick, which was to overcharge for such delicacies as M&Ms and Pringles, probably didn't help them much.
All in all, the whole industry is a mess. Even if some mergers occur, such as the impending one between Delta and Northwest, it's not going to solve the overarching problem - namely, that oil costs too damn much and doesn't look to be getting cheaper anytime soon.
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