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While doing some research on David Neeleman’s (founder of JetBlue) new airline, Azul Brazilian Airlines, I came across an interesting interview of him on CNBC. There, Mr. Neeleman, shared his views about what U.S. carriers should do to help the ailing industry. “Maybe we, all the airlines, get anti-trust immunity, sit down in Washington and figure out a way to cut capacity. But if you go to everyone in the industry and say ‘why don’t you take out 20% of your worst flights,’ those flights that aren’t making money, and you figure out what is and everyone looks at what everyone else has and then they can make cuts. On an inner-basis, have the justice department give limited immunity…” Mr. Neeleman continued with, “Who has more control of the market more than the person who buys the jet fuel? Airlines buy the jet fuel, and have no control of the price today. Let’s take the demand away, crush the speculators, bring it back down…” Mr. Neeleman paralleled the take-the-demand-away option as the “nuclear bomb” for high oil prices.
Mr. Neeleman’s idea about airlines cutting 20% of their routes, specifically their worst flights, is an excellent idea. However I don’t think many of the big six, or big five (Delta & Northwest are now one, remember?), would like the idea. Most large competitor airlines tend to act independently of each other, and it’s unlikely that we’d ever see that much cooperation – unless one counts the letter that most major airlines signed this year; blaming fuel speculators for the high price of oil.
Feel free to check out the interview by clicking the image. Quotes were taken directly from the video – just in case some of you are unable to view it.
Source: CNBC
