Ready to Board the Airlines

It happened again last night. At fundraiser for Tulane University, where my daughter attends school, I briefed people about how I liked the airlines.Their heads were spinning in disbelief. The first questioner went right to it: It's a terrible business with union problems and no profitability.

So let's go over it. The consolidation in the industry has been insane: United and Continental (now United Continental (UAL), Delta (DAL) and Northwest, Southwest (LUV) and Airtran. And my favorite is US Airways (LCC) and AMR (AAMRQ). The four largest airlines now control 80% of the volume. That's very different from the historical trends. In the last seven years, five of 10 airlines have disappeared. That's a ton of capacity and a ton of competition taken out. Overcapacity had always been a tremendous problem in the industry. That's no longer the case....573 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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