Thinking by Peter Davidson:

The media is speculating, as is their want, that the devastation caused by Hurricane Katrina may push more airlines into bankruptcy or even out of business. The combination of service disruption and higher fuel costs may just be enough to push Northwest and American Airlines over the edge.

It would be disruptive to all of America to loose airlines but in the end their isn't much choice for airlines with out dated business plans. Hub and spoke is dead. Fat labor contracts are dead. Fuel and operational efficiency is in. None of the mainline carriers have been able to morph their brands and operations into what is needed in this new century. Maybe some shakeout and wholesale reorganization is what's called for.

New Orleans and surrounding Gulf coast areas will never be the same. Maybe it's time the airline business has to reinvent itself as well. In the meantime we have some cities and lives to rebuild.

Technorati Tags: bankruptcy, disaster relief, gas prices, New Orleans, airlines, flying, failure, airport, gulf states, hurricane, Katrina

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