It's called over-capacity. There needs to be a purging of extra seats. Reorganization is just going to prolong the problem, IMO.
Right. The airlines have already decreased capacity, but there is still overcapacity. But the capacity is not going empty. It is being sold. At too low of a fare.
A simple question: If Delta (and Nortwest and the rest), cut their capacity in half, and double their prices, what would be the effect on their economics?
A round-trip airfare between Atlanta and Washington D.C. is $145. A round-trip bus fare on Greyhound is $125. Does anyone really believe the value of a one and a half hour airplane trip is only $10 more each way than a sixteen and a half hour bus trip each way? That's 67 cents per hour for the extra time spent on the bus.
Airline management is simply incompetent. They cannot even price their product based on its value to their customers.
That and I think the mindset of potential passengers. I am in Atlanta several times a year for both business and personal reasons. Post 9-11 and the hassle of steping out of line to be searched (I don't even wear a turban)I drive there now. Sure it's 16 hours each way, but the way things are now I don't care if I ever get on a plane again. That's the mindset that needs fixing.