What are the economics/business structure that make the airline industry so fragile (bankruptcies, bail outs, etc)?
In: Economics
Airlines only make money when their planes are in the air. Every moment on the ground is just cost.
Right now airlines are flying as few as 1/20th the passengers they once did. That means that a plane that might break even when 66% full is losing a ton of money.
Thats right now. Other times fuel costs have sent discounter airlines packing, as well as pilot/crew labor action (Eastern Airlines)
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