Airline Industry Quotes

What we are trying to do at Virgin is not to have one enormous company in one sector under one banner, but to have two hundred or even three hundred separate companies. Each company can stand on its own feet and, in that way, although we've got a brand that links them, if we were to have another tragedy such as that of 11 September - which hurt the airline industry - it would not bring the whole group crashing down.

There is no tougher job in corporate America than running an airline: Despite the huge amounts of equity capital that have been injected into it, the industry, in aggregate, has posted a net loss since its birth after Kitty Hawk. Airline managers need brains, guts, and experience—and

We’re forever blaming the airline industry for turning us into monsters: it’s the fault of the ticket agents, the baggage handlers, the slowpokes at the newsstands and the fast food restaurants. But what if this is who we truly are, and the airport’s just a forum that allows us to be our real selves, not just hateful but gloriously so?

the consequences of scientific illiteracy are far more dangerous in our time than in any that has come before. It’s perilous and foolhardy for the average citizen to remain ignorant about global warming, say, or ozone depletion, air pollution, toxic and radioactive wastes, acid rain, topsoil erosion, tropical deforestation, exponential population growth. Jobs and wages depend on science and technology. If our nation can’t manufacture, at high quality and low price, products people want to buy, then industries will continue to drift away and transfer a little more prosperity to other parts of the world. Consider the social ramifications of fission and fusion power, supercomputers, data “highways,” abortion, radon, massive reductions in strategic weapons, addiction, government eavesdropping on the lives of its citizens, high-resolution TV, airline and airport safety, fetal tissue transplants, health costs, food additives, drugs to ameliorate mania or depression or schizophrenia, animal rights, superconductivity, morning-after pills, alleged hereditary antisocial predispositions, space stations, going to Mars, finding cures for AIDS and cancer. How can we affect national policy—or even make intelligent decisions in our own lives—if we don’t grasp the underlying issues?

It’s important to remember that market participants have always tended to pull back and do less trading during market crises, suggesting that any reluctance by quants to trade isn’t so very different from past approaches. If anything, markets have become more placid as quant investors have assumed dominant positions. Humans are prone to fear, greed, and outright panic, all of which tend to sow volatility in financial markets. Machines could make markets more stable, if they elbow out individuals governed by biases and emotions. And computer-driven decision-making in other fields, such as the airline industry, has generally led to fewer mistakes.

I didn't feel it anymore. I had long since stopped feeling it, that feeling you get coming into Freedman Town the first time, the surreal astonishment that such a place can exist. A not inconsiderable swath of a major city, in a wealthy industrialized country, in the twenty-first century, in such a grievous state of disrepair. An indivisible city, floating like a dead island, in the wide water of civilization.

This is related to the phenomenon of the Professional Smile, a national pandemic in the service industry; and noplace in my experience have I been on the receiving end of as many Professional Smiles as I am on the Nadir, maître d’s, Chief Stewards, Hotel Managers’ minions, Cruise Director—their P.S.’s all come on like switches at my approach. But also back on land at banks, restaurants, airline ticket counters, on and on. You know this smile—the strenuous contraction of circumoral fascia w/ incomplete zygomatic involvement—the smile that doesn’t quite reach the smiler’s eyes and that signifies nothing more than a calculated attempt to advance the smiler’s own interests by pretending to like the smilee. Why do employers and supervisors force professional service people to broadcast the Professional Smile? Am I the only consumer in whom high doses of such a smile produce despair? Am I the only person who’s sure that the growing number of cases in which totally average-looking people suddenly open up with automatic weapons in shopping malls and insurance offices and medical complexes and McDonald’ses is somehow causally related to the fact that these venues are well-known dissemination-loci of the Professional Smile? Who do they think is fooled by the Professional Smile?

CHARLES PERROW is a sociologist known for studying industrial accidents, such as those that occur with nuclear power plants, airlines, and shipping. In Normal Accidents, he wrote that “We construct an expected world because we can’t handle the complexity of the present one, and then process the information that fits the expected world, and find reasons to exclude the information that might contradict it. Unexpected or unlikely interactions are ignored when we make our construction.

The orchestra musician’s plight caught the interest of Harvard researcher Richard Hackman, who was studying the job satisfaction of workers employed in a variety of industries. Orchestral musicians were near the bottom, scoring lower in job satisfaction and overall happiness than airline flight attendants, mental health treatment teams, beer salesmen, government economic analysts, and even federal prison guards. Only operating room nurses and semiconductor fabrication teams scored lower than these musicians.

None of the world’s leading airlines failed to survive COVID. Yet by 2023, Qantas routinely portrayed its survival of the pandemic as a uniquely Joycean feat, while defining 100 per cent of its operational failures as symptoms of an industry-wide phenomenon. None of that is to trivialise the extraordinary injuries COVID inflicted on Qantas, or Qantas’ decisive efforts to achieve hibernation then manage through oscillating lockdowns. But rather than swallowing Joyce’s post hoc rationalisations offered in 2022 and 2023, I have relied in this book on what he actually said and did in 2020 and 2021.

I don’t know to what extent ignorance of science and mathematics contributed to the decline of ancient Athens, but I know that the consequences of scientific illiteracy are far more dangerous in our time than in any that has come before. It’s perilous and foolhardy for the average citizen to remain ignorant about global warming, say, or ozone depletion, air pollution, toxic and radioactive wastes, acid rain, topsoil erosion, tropical deforestation, exponential population growth. Jobs and wages depend on science and technology. If our nation can’t manufacture, at high quality and low price, products people want to buy, then industries will continue to drift away and transfer a little more prosperity to other parts of the world. Consider the social ramifications of fission and fusion power, supercomputers, data “highways,” abortion, radon, massive reductions in strategic weapons, addiction, government eavesdropping on the lives of its citizens, high-resolution TV, airline and airport safety, fetal tissue transplants, health costs, food additives, drugs to ameliorate mania or depression or schizophrenia, animal rights, superconductivity, morning-after pills, alleged hereditary antisocial predispositions, space stations, going to Mars, finding cures for AIDS and cancer.

I know that the consequences of scientific illiteracy are far more dangerous in our time than in any that has come before. It’s perilous and foolhardy for the average citizen to remain ignorant about global warming, say, or ozone depletion, air pollution, toxic and radioactive wastes, acid rain, topsoil erosion, tropical deforestation, exponential population growth. Jobs and wages depend on science and technology. If our nation can’t manufacture, at high quality and low price, products people want to buy, then industries will continue to drift away and transfer a little more prosperity to other parts of the world. Consider the social ramifications of fission and fusion power, supercomputers, data “highways,” abortion, radon, massive reductions in strategic weapons, addiction, government eavesdropping on the lives of its citizens, high-resolution TV, airline and airport safety, fetal tissue transplants, health costs, food additives, drugs to ameliorate mania or depression or schizophrenia, animal rights, superconductivity, morning-after pills, alleged hereditary antisocial predispositions, space stations, going to Mars, finding cures for AIDS and cancer. How can we affect national policy—or even make intelligent decisions in our own lives—if we don’t grasp the underlying issues? As I write, Congress is dissolving its own Office of Technology Assessment—the only organization specifically tasked to provide advice to the House and Senate on science and technology. Its competence and integrity over the years have been exemplary. Of the 535 members of the U.S. Congress, rarely in the twentieth century have as many as one percent had any significant background in science. The last scientifically literate President may have been Thomas Jefferson.* So how do Americans decide these matters? How do they instruct their representatives? Who in fact makes these decisions, and on what basis? —

Homer-Dixon says increasing complexity makes societies more resilient only up to a point. Connections between villages might mean one comes to the other’s aid in an attack. But as the villages become more tightly coupled, both may suffer when one is attacked. A loose network absorbs shock; a tightly coupled one transmits it. That is happening in the Covid-19 pandemic. Countries go into lockdown; people stop shopping, traveling, and producing; and the effects ricochet through a tightly coupled global economy. The global supply chains of money, materials, people, energy, and component parts that underpin industries falter and break. Airlines go under as they are not set up to weather even a temporary disappearance of travelers. Malaria worsens in Africa as insecticide and antimalarial bed net deliveries falter. Microcredit that underpins small businesses throughout the developing world defaults because payment collectors are locked down, causing ramifications throughout an economy.

If you ever hear the words conventional and wisdom conjoined, reject them. Because if it is conventional, it isn’t wisdom. And if it’s wisdom, it isn’t conventional. —Herb Kelleher How has Southwest been able to attain uncommon results in the worst industry in capitalism? The company has succeeded by being unconventional. Herb likes to tell the story of how a Washington think tank told the company that it would not be able to survive without six of the “keys to success” that other carriers have used. Southwest followed none of those keys to success. At every point of Southwest’s history, the company has successfully challenged industry norms. Southwest differed from the competition because of its low-cost fares. In the 1970s, before deregulation, flying was expensive, because the government controlled the prices. Rollin King and Herb Kelleher’s idea was to provide lower fares and enable a greater number of Americans to fly. Southwest would not be competing with other airlines but with other forms of transportation.

We hear all this talk about integrating the world economically, but there is an argument to be made for not integrating the world economically. Because what is corporate globalization? It isn't as if the entire world is intermeshed with each other. It's not like India and Thailand or India and Korea or India and Turkey are connected. It's more like America is the hub of this huge cultural and economic airline system. It's the nodal point. Everyone has to be connected through America, and to some extent Europe. When powers at the hub of the global economy decide that you have to be X or Y, then if you're part of that network, you have to do it. You don't have the independence of being nonaligned in some way, politically or culturally or economically. If America goes down, then everybody goes down. If tomorrow the United States decides that it wants these call center jobs back, then overnight this billion-dollar industry will collapse in India. It's important for countries to develop a certain degree of economic self-sufficiency. Just in a theoretical sense, it's important for everybody not to have their arms wrapped around each other or their fingers wrapped around each others' throats at all times, in all kinds of ways.

Sinatra was ill. He was the victim of an ailment so common that most people would consider it trivial. But when it gets to Sinatra, it can plunge him into a state of anguish, deep depression, panic, even rage. Frank Sinatra had a cold. Sinatra with a cold is Picasso without paint, Ferrari without fuel- only worse. For the common cold robs Sinatra of that uninsurable jewel, his voice, cutting into the core of his confidence, and it not only affects his own psyche but also seems to cause a kind of psychosomatic nasal drip within dozens of people who work for him, drink with him, love him, depend on him for their own welfare and stability. A Sinatra with a cold can, in a small way, send vibrations through the entertainment industry and beyond as surely as a president of the United States, suddenly sick, can shake the national economy. For Frank Sinatra was now involved with many things involving many people—his own film company, his record company, his private airline, his missile-parts firm, his real-estate holdings across the nation, his personal staff of seventy-five—which are only a portion of the power he is and has come to represent. He seemed now to be also the embodiment of the fully emancipated male, perhaps the only one in America, the man who can do anything he wants, anything, can do it because he has the money, the energy, and no apparent guilt.

WHY DIVERSIFY? During the bull market of the 1990s, one of the most common criticisms of diversification was that it lowers your potential for high returns. After all, if you could identify the next Microsoft, wouldn’t it make sense for you to put all your eggs into that one basket? Well, sure. As the humorist Will Rogers once said, “Don’t gamble. Take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it.” However, as Rogers knew, 20/20 foresight is not a gift granted to most investors. No matter how confident we feel, there’s no way to find out whether a stock will go up until after we buy it. Therefore, the stock you think is “the next Microsoft” may well turn out to be the next MicroStrategy instead. (That former market star went from $3,130 per share in March 2000 to $15.10 at year-end 2002, an apocalyptic loss of 99.5%).1 Keeping your money spread across many stocks and industries is the only reliable insurance against the risk of being wrong. But diversification doesn’t just minimize your odds of being wrong. It also maximizes your chances of being right. Over long periods of time, a handful of stocks turn into “superstocks” that go up 10,000% or more. Money Magazine identified the 30 best-performing stocks over the 30 years ending in 2002—and, even with 20/20 hindsight, the list is startlingly unpredictable. Rather than lots of technology or health-care stocks, it includes Southwest Airlines, Worthington Steel, Dollar General discount stores, and snuff-tobacco maker UST Inc.2 If you think you would have been willing to bet big on any of those stocks back in 1972, you are kidding yourself. Think of it this way: In the huge market haystack, only a few needles ever go on to generate truly gigantic gains. The more of the haystack you own, the higher the odds go that you will end up finding at least one of those needles. By owning the entire haystack (ideally through an index fund that tracks the total U.S. stock market) you can be sure to find every needle, thus capturing the returns of all the superstocks. Especially if you are a defensive investor, why look for the needles when you can own the whole haystack?

Indian Express (Indian Express) - Clip This Article at Location 721 | Added on Sunday, 30 November 2014 20:28:42 Fifth column: Hope and audacity Ministers, high officials, clerks and peons now report for duty on time and are no longer to be seen taking long lunch breaks to soak in winter sunshine in Delhi’s parks. Reform is needed not just in economic matters but in every area of governance. Does the Prime Minister know how hard it is to get a passport? Tavleen Singh | 807 words At the end of six months of the Modi sarkar are we seeing signs that it is confusing efficiency with reform? I ask the question because so far there is no sign of real reform in any area of governance. And, because some of Narendra Modi’s most ardent supporters are now beginning to get worried. Last week I met a man who dedicated a whole year to helping Modi become Prime Minister and he seemed despondent. When I asked how he thought the government was doing, he said he would answer in the words of the management guru Peter Drucker, “There is nothing quite so useless as doing with great efficiency something that should not be done at all.” We can certainly not fault this government on efficiency. Ministers, high officials, clerks and peons now report for duty on time and are no longer to be seen taking long lunch breaks to soak in winter sunshine in Delhi’s parks. The Prime Minister’s Office hums with more noise and activity than we have seen in a decade but, despite this, there are no signs of the policy changes that are vital if we are to see real reform. The Planning Commission has been abolished but there are many, many other leftovers from socialist times that must go. Do we need a Ministry of Information & Broadcasting in an age when the Internet has made propaganda futile? Do we need a meddlesome University Grants Commission? Do we need the government to continue wasting our money on a hopeless airline and badly run hotels? We do not. What we do need is for the government to make policies that will convince investors that India is a safe bet once more. We do not need a new government that simply implements more efficiently bad policies that it inherited from the last government. It was because of those policies that investors fled and the economy stopped growing. Unless this changes through better policies, the jobs that the Prime Minister promises young people at election rallies will not come. So far signals are so mixed that investors continue to shy away. The Finance Minister promises to end tax terrorism but in the next breath orders tax inspectors to go forth in search of black money. Vodafone has been given temporary relief by the courts but the retroactive tax remains valid. And, although we hear that the government has grandiose plans to improve the decrepit transport systems, power stations and ports it inherited, it continues to refuse to pay those who have to build them. The infrastructure industry is owed more than Rs 1.5 lakh continued... crore in government dues and this has crippled major companies. No amount of efficiency in announcing new projects will make a difference unless old dues are cleared. Reform is needed not just in economic matters but in every area of governance. Does the Prime Minister know how hard it is to get a passport? Does he know that a police check is required even if you just want to get a few pages added to your passport? Does he know how hard it is to do routine things like registering property? Does he know that no amount of efficiency will improve healthcare services that are broken? No amount of efficiency will improve educational services that have long been in terminal decline because of bad policies and interfering officials. At the same time, the licence raj that strangles private investment in schools and colleges remains in place. Modi’s popularity with ordinary people has increased since he became Prime Minister, as we saw from his rallies in Kashmir last week, but it will not la

My wife has a sweet tooth but is also very health conscious. Over more than two decades, she has followed a simple yet powerful way of avoiding the enticement of desserts. Our fridge just doesn’t have any. In my view, the best way to avoid investing in bad businesses is to ignore them and their stock prices. We never discuss what we consider bad companies or industries in our team meetings. Never. It doesn’t matter if an airline has declared spectacular results recently or if every analyst recommends buying airline shares. We are indifferent to a public sector bank that has hired a new CEO from the private sector and has pushed its stock price to an all-time high. We ignore an infrastructure business that has been awarded a new multibillion-dollar contract and a gold loan business that has announced 30 percent ROE in its latest quarterly result and is touted by the bulls to be the next billion-dollar opportunity. No one on our team is allowed to utter the famous last words of many investors: “This time, it’s different.” If we never discuss a business, how will we ever buy it? No sweets in the fridge: no snacking possible.

The tools and built environments of hair salons and the platforms powering the airline industry are examples of something called Conway’s law, which says that in absence of stated rules and instructions, the choices teams make tend to reflect the implicit values of their tribe.

However, as Rogers knew, 20/20 foresight is not a gift granted to most investors. No matter how confident we feel, there’s no way to find out whether a stock will go up until after we buy it. Therefore, the stock you think is “the next Microsoft” may well turn out to be the next MicroStrategy instead. (That former market star went from $3,130 per share in March 2000 to $15.10 at year-end 2002, an apocalyptic loss of 99.5%).1 Keeping your money spread across many stocks and industries is the only reliable insurance against the risk of being wrong. But diversification doesn’t just minimize your odds of being wrong. It also maximizes your chances of being right. Over long periods of time, a handful of stocks turn into “superstocks” that go up 10,000% or more. Money Magazine identified the 30 best-performing stocks over the 30 years ending in 2002—and, even with 20/20 hindsight, the list is startlingly unpredictable. Rather than lots of technology or health-care stocks, it includes Southwest Airlines, Worthington Steel, Dollar General discount stores, and snuff-tobacco maker UST Inc.2 If you think you would have been willing to bet big on any of those stocks back in 1972, you are kidding yourself.

Since 1940, the airline industry has made a net loss of $31 billion dollars

Turkish Airlines Contact Number Air travel has become very popular and the preferred means of travel and what better example of this than the national airline of Turkey, Turkish Airlines. Touted as the largest carrier of passengers worldwide, it has services to 304 destinations in Europe, Americas, Asia and Africa. In service since 1933 with a handful of aircrafts, it now has a fleet of over 300 aircraft. One of the only airlines with its own seat design and manufacture unit, Turkish Seats Industries ergonomically designs seats to improve customer comfort. Turkish Airlines has a quality goal to elevate passenger experience to new heights. Right from the time you book your ticket, checking in, cabin experience – every minute detail is designed to show the passenger how valued and cared for he is.

The Boeing 737 Max 9 is just one of the numerous problems the USA airline industry has.

The Boeing 737 Max 9 is just the tip of an iceberg of problems the USA airline industry has.

Initially the common ownership theory was dismissed as a loony idea from ivory-tower economists. After all, the airline industry is infamously bankruptcy-prone and looked like poor evidence of anticompetitive behavior, overt or otherwise. Richard Branson, the billionaire entrepreneur, once joked that the best way to become an aviation millionaire was to be a billionaire and invest in an airline. However, the theory gradually started to garner attention. “Are Index Funds Evil?” was the provocative title of one piece examining the subject in The Atlantic in 2017.18

announced that families of victims would receive compensation for their loss based in part on the salary each victim was earning at the time of his or her death. After the attacks on the World Trade Center and the Pentagon, Congress had taken the unprecedented step of assuming national responsibility for restitution to the families of the victims. Though the inspiration for this decision was to forestall expensive lawsuits against the airline industry, many observers took it as a signal of a new spirit in the land: in the face of national tragedy, political leaders were i nally breaking with the jungle survivalism of the Reagan-Clinton years. But even in death, the market—and the inequalities it generates—was the only language America’s leaders knew how to speak. Abandoning the notion of shared sacrii ce, Feinberg opted for the actuarial tables to calculate appropriate compensation packages. The family of a single sixty-i ve-year-old grandmother earning $10,000 a year—perhaps a minimum-wage kitchen worker—would draw $300,000 from the fund, while the family of a thirty-year-old Wall Street trader would get $3,870,064. The men and women killed on September 11 were not citizens of a democracy; they were earners, and rewards would be distributed accordingly. Virtually no one—not even the commentators and politicians who denounced the Feinberg calculus for other reasons—criticized this aspect of his decision. 28

The flow of the user experience is to give the end user something of value, build trust in the relationship and then engage in commerce once we’re comfortable with each other. The industrial ethic had the opposite approach. Its approach was to say, ‘Here’s this item and this is the price. So let’s transact. You buy something and if you buy it often enough I might reward you for your loyalty later on’. Airline frequency flyer programs operate in this way.

In the 1950s, V. Lilaram & Co. was the first company to charter a Pan American airlines cargo flight with a full load of textiles from New York to the Philippines. The top-selling item, Verhomal noticed, was Jockey undergarments, which catered to the American military which was still present in the Philippines in large numbers after the war. The largest American air and naval bases outside the US mainland were in the Philippines—Verhomal’s main market. From these military bases, Jockey’s market expanded to the local population in the Philippines. Forty years later, in the 1990s, Jockey International (USA) gave the exclusive licence to the Genomals to form a company that would launch and expand Jockey’s presence in India. Within two decades, this company—Page Industries—would go on to become the biggest licensee of Jockey in the world.

Yet just days later Ryanair announced that it had placed one of the biggest-ever orders for Boeing’s 737 series aircraft. The company said it would purchase one hundred Boeing 737-800 aircraft in the next eight years and had taken options on fifty more planes, claiming that Boeing’s offer was ‘exceptionally competitive’. Ryanair said the ‘catalogue value’ of the deal was $9.1 billion, but refused to disclose the extent of the discount it had negotiated. Airline industry observers, aware of the US aircraft manufacturer’s desperate need to win the contract, speculated that it amounted to between 30 and 50 per cent. Boeing had been forced to sharply reduce its aircraft production and to lay off up to 30,000 workers as it struggled to stave off a financial crisis in the wake of the terrorist attacks. Some people who know O’Leary and Tony Ryan well suggest one of their great similarities is their ability to ‘corner their prey’.

Delta Airlines, you might have noticed, does not run negative TV ads about USAir. It does not show pictures of the crash of USAir Flight 427, with a voice-over saying: “USAir, airline of death. Going to Pittsburgh? Fly Delta instead.” And McDonald’s, you might also have noticed, does not run ads reminding viewers that Jack in the Box hamburgers once killed two customers. Why? Because Delta and McDonald’s know that if the airline and fast-food industries put on that kind of advertising, America would soon be riding trains and eating box-lunch tuna sandwiches. Yet every two years the American politics industry fills the airwaves with the most virulent, scurrilous, wall-to-wall character assassination of nearly every political practitioner in the country—and then declares itself puzzled that America has lost trust in its politicians.

Creating value is not enough—you also need to capture some of the value you create. This means that even very big businesses can be bad businesses. For example, U.S. airline companies serve millions of passengers and create hundreds of billions of dollars of value each year. But in 2012, when the average airfare each way was $ 178, the airlines made only 37 cents per passenger trip. Compare them to Google, which creates less value but captures far more. Google brought in $ 50 billion in 2012 (versus $ 160 billion for the airlines), but it kept 21% of those revenues as profits—more than 100 times the airline industry’s profit margin that year. Google makes so much money that it’s now worth three times more than every U.S. airline combined.

Investigations revealed that two Venezuelan nationals, Freddy Lugo and Hernán Ricardo Lozano, who had been employed by Luis Posada Carriles, planted the bombs that destroyed a Cuban airliner. The men admitted to the crime and confessed that they were acting under Luis Posada’s orders. During the ensuing investigation, explosives, weapons and a radio transmitter were discovered at Posada’s private detective agency, in Venezuela. Posada was arrested and jailed in Venezuela. Freddy Lugo and Hernán Ricardo Lozano were sentenced to 20-year prison terms. It was later learned that Posada was overheard saying, “We are going to hit a Cuban airplane and Orlando has the details.” Posada was tried and while awaiting a verdict escaped from prison once again. Apparently a sizeable bribe was paid to his guards and other authorities making it possible to buy his way out dressed as a priest. Once out he fled from Venezuela to Panama and then to the United States. It was only after his return to the United States and he was assigned to Nicaragua, as a deputy to Félix Rodríguez that his CIA connection became apparent. Félix Rodríguez was the CIA Operative who helped capture “Che” Guevara in the Bolivian highlands. After an investigation of Posada’s background by the press it became apparent that Posada was responsible for 41 bombings during the Contra conflict. By his own admission, he also planned numerous attacks against Cuba. In 1997, it was discovered that Posada was involved in a series of terrorist bombings in Cuba, with the intent of disrupting the country’s fledgling tourist industry.

United Airlines 173 was a traumatic incident, but it was also a great leap forward,” the aviation safety expert Shawn Pruchnicki says. “It is still regarded as a watershed, the moment when we grasped the fact that ‘human errors’ often emerge from poorly designed systems. It changed the way the industry thinks.” Ten people died on United Airlines 173, but the learning opportunity saved many thousands more.

The airlines, the railroads, and much of heavy industry were all nationalized, and the government owned and operated the coal mines, steel mills, and auto factories. The result of this experiment with socialism would come to be known as the “British disease.

We all know now that the 747 became the flagship jumbo jet of the airline industry, but the decision looks much different from the perspective of the late 1960s. Yet—and this is the key point—Boeing was willing to make the bold move in the face of the risks. As in Boeing’s case, the risks do not always come without pain.

ahead of ICAO audit By Tarun Shukla | 527 words New Delhi: India's civil aviation regulator has decided to restructure its safety board and hire airline safety professionals ahead of an audit by the UN's aviation watchdog ICAO (International Civil Aviation Organization). The Directorate General of Civil Aviation (DGCA) announced its intent, and advertised the positions on its website. ICAO told the Indian regulator recently that it would come down to India to conduct an audit, its third in just over a decade, Mint reported on 12 February. Previous ICAO audits had highlighted the paucity of safety inspectors in DGCA. After its 2006 and 2012 audits, ICAO had placed the country in its list of 13 worst-performing nations. US regulator Federal Aviation Authority followed ICAO's 2012 audit with its own and downgraded India, effectively barring new flights to the US by Indian airlines. FAA is expected to visit India in the summer to review its downgrade. The result of the ICAO and FAA audits will have a bearing on the ability of existing Indian airlines to operate more flights to the US and some international destinations and on new airlines' ability to start flights to these destinations. The regulator plans to hire three directors of safety on short-term contracts to be part of the accident investigation board, according to the information on DGCA's website. This is first time the DGCA is hiring external staff for this board, which is critical to ascertain the reasoning for any crashes, misses or other safety related events in the country. These officers, the DGCA said on its website, must have at least 12 years of experience in aviation, specifically on the technical aspects, and have a degree in aeronautical engineering. DGCA has been asked by international regulators to hire at least 75 flight inspectors. It has only 51. India's private airlines offer better pay and perks to inspectors compared with DGCA. The aviation ministry told DGCA in January to speed up the recruitment and do whatever was necessary to get more inspectors on board, a government official said, speaking on condition of anonymity. DGCA has also announced it will hire flight operations inspectors as consultants on a short-term basis for a period of one year with a fixed remuneration of `1.25 lakh per month. "There will be a review after six months and subsequent continuation will be decided on the basis of outcome of the review," DGCA said in its advertisement. The remuneration of `1.25 lakh is higher than the salary of many existing DGCA officers. In its 2006 audit, ICAO said it found that "a number of final reports of accident and serious incident investigations carried out by the DGCA were not sent to the (member) states concerned or to ICAO when it was applicable". DGCA had also "not established a voluntary incident reporting system to facilitate the collection of safety information that may not otherwise be captured by the state's mandatory incident reporting system". In response, DGCA "submitted a corrective action plan which was never implemented", said Mohan Ranganthan, an aviation safety analyst and former member of government appointed safety council, said of DGCA. He added that the regulator will be caught out this time. Restructuring DGCA is the key to better air safety, said former director general of civil aviation M.R. Sivaraman. Hotel industry growth is expected to strengthen to 9-11% in 2015-16: Icra By P.R. Sanjai | 304 words Mumbai: Rating agency Icra Ltd on Monday said Indian hotel industry revenue growth is expected to strengthen to 9-11% in 2015-16, driven by a modest increase in occupancy and small increase in rates. "Industry wide revenues are expected to grow by 5-8% in 2014-15. Over the next 12 months, Icra expects RevPAR (revenue per available room) to improve by 7-8% driven by up to 5% pickup in occupancies and 2-3% growth in average room rates (ARR)," Icra said. Further, margins are expected to remain largely flat for 2014-15 while

Julie Kliger, director of the university’s Integrated Nurse Leadership Program, told SFGate.com in 2009 that her inspiration to expand the program came from an unlikely place—the airline industry. It’s called the “sterile

Third, the idea that venture capitalists get into deals on the strength of their brands can be exaggerated. A deal seen by a partner at Sequoia will also be seen by rivals at other firms: in a fragmented cottage industry, there is no lack of competition. Often, winning the deal depends on skill as much as brand: it’s about understanding the business model well enough to impress the entrepreneur; it’s about judging what valuation might be reasonable. One careful tally concluded that new or emerging venture partnerships capture around half the gains in the top deals, and there are myriad examples of famous VCs having a chance to invest and then flubbing it.[6] Andreessen Horowitz passed on Uber. Its brand could not save it. Peter Thiel was an early investor in Stripe. He lacked the conviction to invest as much as Sequoia. As to the idea that branded venture partnerships have the “privilege” of participating in supposedly less risky late-stage investment rounds, this depends from deal to deal. A unicorn’s momentum usually translates into an extremely high price for its shares. In the cases of Uber and especially WeWork, some late-stage investors lost millions. Fourth, the anti-skill thesis underplays venture capitalists’ contributions to portfolio companies. Admittedly, these contributions can be difficult to pin down. Starting with Arthur Rock, who chaired the board of Intel for thirty-three years, most venture capitalists have avoided the limelight. They are the coaches, not the athletes. But this book has excavated multiple cases in which VC coaching made all the difference. Don Valentine rescued Atari and then Cisco from chaos. Peter Barris of NEA saw how UUNET could become the new GE Information Services. John Doerr persuaded the Googlers to work with Eric Schmidt. Ben Horowitz steered Nicira and Okta through their formative moments. To be sure, stories of venture capitalists guiding portfolio companies may exaggerate VCs’ importance: in at least some of these cases, the founders might have solved their own problems without advice from their investors. But quantitative research suggests that venture capitalists do make a positive impact: studies repeatedly find that startups backed by high-quality VCs are more likely to succeed than others.[7] A quirky contribution to this literature looks at what happens when airline routes make it easier for a venture capitalist to visit a startup. When the trip becomes simpler, the startup performs better.[8]

Compared to a conventional debt instrument, what makes securitization so attractive is the fact that the airline often retains the junior tranches. These become an asset on its balance sheet. Any discount associated with the low credit rating of these layers is more than offset by the discount on the purchase of the aircraft, thereby creating an immediate profit and cash inflow on delivery of the aircraft. Such are the wonders of modern financial alchemy. Under good, even normal, business conditions, the airline makes lease payments to the securitization vehicle. But in a recession or a bankruptcy filing, when payments are suspended, the owners of the senior strata are able to seize the collateral. The junior participants in the securitization have no rights, and any such assets on the airline’s balance sheet must be written down to zero, further increasing the airline’s losses. By this clever piece of financial engineering, the airline gets shiny new planes for an extremely low cost of funds–recently as low as 6 per cent–while equity shareholders carry nearly all of the business risk. That an industry which has rarely earned an acceptable return on capital should have access to such cheap capital is quite astonishing.

The events of September 11, 2001 presented an unprecedented ethical challenge to the business leaders of the airline industry. From Jim Parker’s own lecture (Parker. 2010) and his book Do the Right Thing (Parker, 2008) as well as other publicly available material, we can highlight the ethical business decisions of Jim Parker, Chief Executive Officer (CEO) of Southwest Airlines at that time, and the highly positive business impact these decisions had on Southwest Airlines.

Horizontal expertise paints on a far-reaching canvas. Say that you are an expert known worldwide for helping CEOs manage change in disruptive environments. Your expertise doesn’t come from understanding a vertical industry, like mining or media or consumer electronics or transportation. You just need to be sufficiently sharp to learn enough about a given industry to know how to apply your expertise in a given setting. In effect, you can work with any viable CEO candidate who wants to learn — regardless of the industry — as long as the primary challenges are defined horizontally, such as navigating deep change in the middle of disruption. Today you’re working with C-level executives at Samsung after their phones are banned on all airline flights, but next month you might be working with an executive in the hospitality industry facing a hotel worker strike. Or health insurance executives navigating an uncertain landscape that can never really see farther than two years. Each of these engagements is interesting because you have to apply your expertise to a new setting. But as much as you are learning, you’re taking two steps back for every three steps forward because much of what you learn with each new engagement is just the bare necessity in order to even be relevant. It’s interesting but challenging. Thrilling but exhausting. Engaging but distracting. There are cases, of course, where new clients regard your broad expertise as a significant selling point. They like that you can apply consumer insights to a professional B2B setting, or that you can help apply change management to consumer engagement. The first advantage of horizontal expertise, then, is how the application of expertise to many verticals always keeps the expert engaged and learning.

John Myers, who spent thirty-seven years at GE, ran its pension fund for years, and sat on the GE Capital board, explained to me the keys to the success of GE Capital: GE’s AAA credit rating, allowing it to borrow money very cheaply. “Banks weren’t even rated AAA at that time,” he said. “We borrowed money cheaper than anyone could.” GE could also use GE Capital to reduce the taxes GE would otherwise pay on earnings from its very profitable industrial businesses. Here’s how that worked: If, say, an airline bought a new jet, it would have an asset that would depreciate over time, and the airline could use the depreciation to reduce its taxable income. But, at that time anyway, most airlines didn’t make much money, if any, so the value of the depreciation deductions was of little use to them. But to GE, the depreciation—the tax deductions—would be very valuable as a way to reduce GE’s pretax income and therefore to pay less in taxes. With that logic, GE Capital would buy the jets, lease them to the airlines at commercially attractive rates, and then use the depreciation on the jets to reduce the pretax income at GE.

The Christmas 2022 airline disaster can be traced back to a lack of government regulation of the industry.

Rules, no matter how enveloping, will never deliver an exceptional customer experience. Colleen Barrett, who in her forty-seven-year career at Southwest served as head of marketing, customer service, people, and operations, describes the airline’s approach to rules: “The rules are guidelines. I can’t sit in Dallas, Texas, and write a rule for every single scenario you’re going to run into. You’re out there. You’re dealing with the public. You can tell in any given situation when a rule should be bent or broken. You can tell because it’s simply the right thing to do in the situation you are facing.” 17 Backing up this freedom is a concerted effort to ensure every team member has the information needed to think and act like an owner. At Southwest, training programs cover industry economics, financial ratios, profitability drivers, and more. By investing in the judgment of its people, Southwest creates a business that is smarter, more innovative, and more profitable.

Let’s consider what Kelleher and O’Leary did to the airline industry. In essence, they said, “Who needs all these operating costs? We—and our customers!—certainly don’t.” By leaving no stone unturned to take ever-increasing swathes of operating cost out of their businesses and by lowering their prices, they brought hordes of new passengers to air travel.

This is not every man. Dao is in another place, another time. The savagery of his ejection may have triggered some deep rooted trauma. In 1975, Saigon had fallen. His home was no longer his home. Dao was forced to flee as a refugee, and he and his wife raised their family of five kids in Kentucky, a new home that – if reports are to be believed about his checkered history – had its own share of absurd hardships. Dao was caught trafficking prescription drugs for sex and lost his medical license, after which he earned his income as a poker player. While I agree with his defenders that his rap sheet is irrelevant to the United Airlines incident, it's relevant to me, since it helps us to see Dao in a more complex, realistic light. Dao is not a criminal nor is he some industrious automaton who could escape the devastation of his homeland and, through a miraculous arc of resilience, become an upstanding doctor whose kids are also doctors. For may immigrants, if you move here with trauma, you're going to do what it takes to get by. You cheat. You beat your wife. You gamble. You're a survivor and, like most survivors, you are a god-awful parent.

The Go story provides a useful reminder that some of the most instructive analogs—First Direct, in Go’s case—don’t have to come from your own industry. And analogs from outside your industry are less likely to have been noticed and copied by your competitors. Everyone in the airline industry already knew about Southwest and Ryanair. But First Direct’s low-cost but friendly service model was something quite different, an inspiration for Barbara Cassani and her team and a key ingredient in Go’s ability to attract and retain its early customers.

The problems of European auto-and steelmakers relate primarily to a fall in demand as opposed to any recent overbuilding of domestic capacity in more favourable macroeconomic conditions. Other industries have suffered from disruptive new technologies or business models which have left legacy companies struggling to cope. Flag-carrier airlines, saddled with outdated employment contracts and national champion status, have suffered greatly from the growth of unencumbered low cost carriers. The CEO of struggling SAS in Scandinavia recently bemoaned the lack of a Chapter 11 process in Europe. Perhaps he is jealous of a system which in the US has led to the anti-Darwinian outcome of the survival of the least fit!

The airline industry was flying empty planes out from the mainland to evacuate Maui during the August 2023 wildfires.

I have been a victim of the airline industry ‘Bumped’ passenger that gets reclassified to ‘No-Show’ fraud.

Emery Air Freight must be the most promising of the four companies in terms of future growth, if the price/earnings ratio of nearly 40 times its highest reported earnings is to be even partially justified. The past growth, of course, has been most impressive. But these figures may not be so significant for the future if we consider that they started quite small, at only $570,000 of net earnings in 1958. It often proves much more difficult to continue to grow at a high rate after volume and profits have already expanded to big totals. The most surprising aspect of Emery’s story is that its earnings and market price continued to grow apace in 1970, which was the worst year in the domestic air-passenger industry. This is a remarkable achievement indeed, but it raises the question whether future profits may not be vulnerable to adverse developments, through increased competition, pressure for new arrangements between forwarders and airlines, etc. An elaborate study might be needed before a sound judgment could be passed on these points, but the conservative investor cannot leave them out of his general reckoning.

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From a business perspective, we all know that airlines have struggled for years,” says Mac Kern, former vice president of commercial planning at Surf Air. “It’s a very capital intensive business, not to mention commodity-based. Prices get driven downward. It’s very competitive. The subscription model gives us predictive revenue—that’s something that no commercial carriers have. They don’t know if a flight is going to be profitable until the door on the airplane closes (and they still have to fly at that point!). Because of subscriptions, we know exactly how much revenue we’re going to generate at the beginning of every month. So we can scale our operation effectively, because we know exactly how much flying we’re able to execute. That kind of insight is basically magic in the aviation industry. No one has been able to do that before.

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In 2018, All Nippon Airways (ANA) funded the $10 million ANA Avatar XPRIZE to speed the development of robotic avatars. Why? Because ANA knows this is one of the technologies likely to disrupt the airline industry—their industry—and they want to be ready.

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Trippe applied this strategy over and over. He designed and demanded bigger and faster planes that no one thought could be built, from his three-seater taxi all the way to the Boeing 747. Pan Am launched the Jet Age, brought international travel to the masses, and became the largest airline in the world. Trippe was a quietly dominant P-type innovator.

To fill two and a half times as many seats, an airline needs two and a half times as many passengers. Pan Am’s lock on international travel, however, had been weakening. Congress had launched an antitrust investigation of Pan Am’s monopoly on foreign routes in the 1950s. Populist voices complained that regulators were protecting industry giants rather than consumers. Some of the loudest complaints came from startups—Texas Air, Braniff, and, eventually, Southwest Airlines. The startups also brought new ideas to the industry. Hub and spoke. Flying to secondary airports. Reducing turnaround times to 20 minutes. Like Sam Walton’s supersized stores far outside cities, none of the ideas involved new technologies. They were all small changes in strategy that no one thought would amount to much. They were all S-type loonshots.

The faint glimmers from those S-type loonshots were dwarfed by the decade’s most glamorous P-type loonshot: the 747 jumbo-jet airliner. Until deregulation. Small changes that improved efficiency and lowered costs—not glamorous, kind of boring—suddenly became the key to survival. Those S-type loonshots, nurtured by startups like Southwest or major carriers like Bob Crandall’s American, spread quickly through the industry. They annihilated every unprepared airline.

Only those P-type loonshots that continue to spin the wheel matter. Trippe saw the new ways of doing business, the S-type loonshots from Bob Crandall and other large carriers, or from local discounters like Pacific Southwest Airlines—but he ignored them. Edwin Land not only saw digital, he dove deep on digital. But he ignored it, for his company, in favor of Polavision.

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A strategic positioning, especially when it has a high degree of focus, is sometimes seen as carving out a “niche.” The implication of that word is that the market opportunity is small. Although this may sometimes be the case, even focused competitors can be very large. In the case of Southwest, what initially looked like a narrow niche has revolutionized the airline industry.

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