Comments on: Why AA and others can do what they want http://thewildinvestor.com/airline-delays/ a money and investing blog Thu, 12 Jan 2012 02:32:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Praveen http://thewildinvestor.com/airline-delays/comment-page-1/#comment-3908 Praveen Thu, 10 Apr 2008 21:23:46 +0000 http://thewildinvestor.com/why-aa-and-others-can-do-what-they-want/#comment-3908 The problem is that airline executives at traditional airlines refuse to "think outside the box". They manage to lose money over the long run and alienate their customers. That is why discount carriers have been so successful. One of the things that always bothered me about traditional airlines is that, when there is a weather problem and O'Hare closes down (causing chain-reaction delays all over the country), the airlines always take no blame and say "it's an Act of God". No - it's the result of a business decision to use the Hub-and-Spoke model and bottle-neck all domestic air traffic through a handful of airports. Southwest, for example, keeps things simple: only one type of aircraft and flies point-to-point. The problem is that airline executives at traditional airlines refuse to "think outside the box". They manage to lose money over the long run and alienate their customers.

That is why discount carriers have been so successful.

One of the things that always bothered me about traditional airlines is that, when there is a weather problem and O'Hare closes down (causing chain-reaction delays all over the country), the airlines always take no blame and say "it's an Act of God".

No – it's the result of a business decision to use the Hub-and-Spoke model and bottle-neck all domestic air traffic through a handful of airports.

Southwest, for example, keeps things simple: only one type of aircraft and flies point-to-point.

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