Thursday, November 19, 2009

Outclimbing Recession

As economic woes continue to grow, it seems that airlines continue to become more and more desperate to outclimb the financial troubles of this recession. It may seem strange at first to imagine that the airline industry would ever be in a position so far into debt and bankruptcy, considering the sheer importance of the service provided. Every day thousands of people commute otherwise unreasonable distances thanks the efficient method of transportation that the airline industry provides. In a world that seems to be truly held together by commercial aviation, it’s a wonder that many airlines face the very real threat of extinction. Larger carriers such as United Airlines (NASDAQ:UAL) find themselves in a balancing game between Customer Satisfaction and Financial Feasibility. Last month, amid falling sales of Premium-level tickets, UAL began looking at the possibility of decreasing the number of seats onboard their aircraft that are designated for Premium service. They are also working on incentive programs to increase customer programs, such as their highly successful “Mileage Plus” program. With an aim to lower costs without sacrificing too much in the way of Customer Satisfaction, one can only wonder if some airlines have what it takes to outclimb this recession, and ultimately bankruptcy.

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