Soft Landing: Airline Industry Strategy, Service, and Safety

The World’s Greatest Loss Leader

“A recession is when you have to tighten your belt; depression is when you have no belt to tighten. When you’ve lost your trousers —you’re in the airline business.”

—Sir Adam Thomson

Throughout its history, the airline industry has been a “loss leader.” Airlines are just like that gallon of milk your local supermarket discounts (in other words, loses money on) to get you through the door to buy other, more profitable stuff. Although there have been periods when airlines actually do make a profit, they are few and far between. To remain in existence, the industry has always relied upon huge amounts of government ...