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Better off without poorly managed airlines?

Randy Petersen

rewarding travel

by Randy Petersen
Winter 2004

Ask Randy

Created for and published in Executive Travel magazine

Randy Petersen answers reader questions about how to maximize travel-related loyalty programs.


Dear Randy,
US Airways has again filed for bankruptcy. It has been a poorly managed airline for years, and its service is horrible. I believe the airline industry and air travelers would be better off without US Airways, United and Delta.



Well, it seems you’re not asking for any advice, but you do present a point of view shared by at least a few others.

It’s probably true that the airline has suffered through some poor management. As for their service, I’ve been on board and find it no better, and no worse, than most other airlines I have flown. I’ve seen great flight attendants and disinterested flight attendants, but I haven’t found them to be consistently bad.

In some ways, US Airways reminds me of Continental Airlines before Gordon Bethune came on board in the early 1990s. Perhaps they need a leader with charisma and a real vision of what role the airline has in a newly minted transportation system with new players and many new distractions.

As for the industry—and travelers—being better off without US Airways, United and Delta, I really can’t agree with you, and here’s why: While we can bellyache all we want about what’s wrong, a mere four years ago, we were all pretty happy. And while we moan about high airfares, the facts seem to indicate that accounting for inflation, etc., airfares have continued to drop over the years—even prior to this current fascination with low-cost carriers.

No business or industry is immune to hard times, and while I can play the armchair quarterback game as well as anyone, and point out the obvious—after the fact—that the travel industry is not prepared, nor could it recover from, the loss of these three airlines right now. Who would pick up the slack? Which of the smaller airlines is really prepared to increase daily flights from 230 to 2,800 and continue making a profit?

Anyway, I hope you don’t mind that I can’t agree with you on this one issue. Only when these three carriers, and all other airlines, are fully responsible to their passengers will there be a great air transportation system in the U.S. And I think we’d both agree that’s not likely to happen anytime soon.

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_____________________________________________

Created for and published in Executive Travel magazine

RANDY PETERSEN is publisher of Inside Flyer magazine and is president of Frequent Flyer Services. Email Randy at editor@executivetravelmag.com.


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