Posted September 30, 2008 4:12 PM
By Peter Morris
Once again, the US airline industry is facing significant challenges. Whatever the criticisms of the U.S. Chapter 11 options, it provided an umbrella for several of the Majors to reinvent their businesses over the 2002-2005 period. As a result of restructuring measures taken whilst under this protection, costs were slashed, productivity increased and overall profitability was restored (albeit briefly). This success inevitably came at a price, both for staff who found their terms and conditions significantly eroded; the travelling public, who found falling service levels, fuller planes and rising fares; and shareholders who found much of their investment destroyed.