I think you've got it half right, Max. Of course, they care about jetBlue rates. At the time, jetBlue was the media darling. New entrant. Low wages (40% below average). No retirement funding. They became the model for how to cut wages and benefits.
How did the airlines respond? Chapter 11. Abrogate Union contracts. Put the gun to the head of the pilots and threaten to liquidate unless they acquiesced.
And they got what they wanted. Now everybody's pay and benefits is approaching the jetBlue model. The airlines have returned to profitability and jetBlue has lost its competitive edge.
Then along comes Virgin and lowers the bar even more. The pressure will be on to match. Fortunately, the airlines will not be able to rely on the Bankruptcy Code this time.
Guess what? Along comes Skybus and lowers the bar even more.
And I should extend "professional courtesies" to the guys who are lowering the bar for all of us? I don't think so.
I do agree with you about the piracy at the top. A short look at airline executive compensation (Mr. Grinstein is the notable exception) is all you need to affirm that.
Naw, still gotta disagree. You think airline management cares what the media says about the industry?
They knew that JTBLU was the media darling of the minute, but that eventually that love would turn to hate, like it did this past winter.
The hot #### airline today is tomorrows loser in the media. Any executive that runs an airline based soley upon a review in the NY Times is an idiot.
These people believe it or not, are smart. They could run an airline into the ground, or make it prosper should they wish. But under the current laws there is no incentive, it makes more sense to run it into the ground as a trust fund baby and retire with a golden parachute. After all, they were born with a silver spoon in their mouth, went to Harvard, Yale or Brown, they shouldn't actually have to work, right?
What we see being layed out in front of our eyes is simply the rich getting richer and an aggressive attack on the middle class.
They saw with Jetblues rate an opportunity to cash in, they didn't care about the airline. Hell they knew worst case scenario the government would bail them out and they'd still get bk proof retirement packages.
Worst of all, is that the pilot groups bought it fearing for their job and took cuts, while managements took huge bonuses and spied a once in a lifetime opportunity to defang the unions that had long since been a thorn in their sides.
If you want to debate, lets cut excuses, and bring the meat to the table.
"After all, beef, it's what's for dinner!"