Comments on: Why Airlines Should be Allowed to Fail

By: CF

CF — Wed, 19 Sep 2007 03:36:47 +0000

Thanks for correcting me, RNA. Southwest did start MDW service in 1985 and Midway didn’t go under until 1991. But the point remains the same - they rapidly ramped up to fill in the hole when Midway failed.

As for ATL, that wasn’t the world number 1 until the late 1990’s. I believe O’Hare had that title for years before that, though that of course depends upon which measure you use. But yes, it was always big.

By: RNA

RNA — Wed, 19 Sep 2007 03:16:32 +0000

Believe Southwest was already at MDW before the old Midway folded. It didn’t set up shop after the old Midway folded, it simply got a lot larger.

Also, my recollection is that ATL was already the world number one before Eastern collapsed. Then it dropped from number one, then eventually it regained its crown thanks to AirTran (ValuJet) & Delta.

By: “If airlines aren’t healthy enough to survive, governments should let them go. Don’t try to prop them up.” « Evan Sparks’s Aviation Policy Blog

Mon, 17 Sep 2007 18:25:39 +0000

[...] 17th, 2007 by Evan Sparks Wise words from The Cranky Flier regarding government impulses to bail out failing airlines. Let the market work; it does a great [...]

By: Bradley

Bradley — Mon, 17 Sep 2007 12:51:33 +0000

For an excellent article on this very subject, see the following. Your assertions are wholly supported, and I agree as well!

Rollman, D. P. (2004). Flying low: Chapter 11’s contribution to the self-destructive nature of
airline industry economics. Emory Bankruptcy Developments Journal. 21(1).