[tcostell]

Actually, when I was in college "Labor Economics" was the flavor of the day(it was the Reagan years). My Graduate thesis was on the net economic effect of collective bargaining, and Pan Am (Pan American Airlines for those of you too young to remember) was one of my case studies.

I think I can argue that I'm as educated on the issue as anyone, and regardless of what the airline may have done in the short term to try to save themselves, their long term problem is runaway labor costs, and low productivity.

In other words, the unions.

Management can still make poor decisions, but even if they do everything right, unionized labor will kill even the best run airline eventually. And not only could I predict that 20 years ago, I did.

[tamu]

You're right, of course. I can remember my dad saying the same thing (about 20 years ago, right after deregulation).

I would like to add to your comment that United was completely unhedged going from 2002 to 2003. Fuel costs are the number 2 expense for the airlines and jet fuel was around $0.60/gallon a year ago and is around $1.30 now. Guess who was 100% hedged going into 2003? Southwest.

[discostu]

Any organization that is against merit based raises will eventually destroy the business it's in. And basing salary on length of employment is bad for workers too, in short order they're trapped in their current company because leaving would involve a massive reduction of pay. All around unions are bad, back when they were fighting against things like physical abuse of the workers they were good, but they've long since lost their purpose and now are a massive albotross on the American economy.

[Snerfling]

their long term problem is runaway labor costs, and low productivity. In other words, the unions.

That's an easy prediction to make my friend. ANY distortion to basic market forces will eventually result in the market correcting such distortions, even if it takes 20 years.