Can the big airlines salvage a business model that relies on business travelers for profit?
The risks in doing nothing are huge. But the risks of changing too quickly, too much or in the wrong way might be even higher. The traditional carriers have sunk billions of dollars into fleets, facilities and people to service their networks. Switching to a low-cost, low-fare model such as Southwest’s would be complex and costly. The pain likely would include pay cuts and more lost jobs. Lenders and creditors could see reduced payments from carriers and even some defaults. Stockholders wouldn’t reap any rewards in the short term and would risk losing it all through bankruptcy filings. Consumers could see their travel choices reduced. Some smaller communities could lose service.
