This recent Bloomberg story has set tongues wagging. Hawaiian Airlines is apparently interested the A380? Seriously? Let’s look at why this might be the case and some of the factors that could drive a decision in that direction. Can a…
As fuel costs have come down we have seen the US airline industry report record profits. But how is the impact playing out? We created the following chart to illustrate this using the Boeing 737-700 and a few airlines as…
People like to make jokes about air travel in the US. It the staple of every dinner party and also great value for any stand-up comic. Is service really that bad? After all, Americans are paying relatively low fares and…
US airlines have announced record profits – load factors are at all time highs. Fares are higher than you would think necessary with fuel prices down considerably. Consolidation has been excellent news for the US airline industry. But what has…
With the US airline industry consolidated, we would expect at least a short term discipline as the oligopoly finds its “natural” equilibrium. As we have said before over the long term, there is always going to be a breakdown because…
The recent drop in oil prices has not resulted in an equivalent drop in air fares, as airlines are attempting to keep additional profitability from lower costs whenever they can. Perhaps the most egregious indication of this trend is Qantas,…