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Friday, August 10, 2007

Boyd: Airlines Face Meltdown Next Year, Battling Wrong Foe

Boyd Group President Michael Boyd suggested a major crisis is looming in the airline industry which may result in “another fundamental business model restructuring” that will not be solved by consolidation or mergers. Boyd cited the continuing ATC infrastructure deterioration, “really inept legislation” and oil as the catalysts. He indicated that the $9 billion the ATC system is costing the airlines will be compounded by oil prices reaching $80 per barrel, up from $58 earlier this year. He said the industry and Congress are focusing on the wrong goal and should grabcontrol of ATC modernization from FAA, defining what it is the industry actually needs. For a complete report see the next issue of Regional Aviation News.

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