Midwest Airlines in the coming months will make several significant fleet decisions that will guide the carrier through a planned network and schedule expansion. This marks a significant turnaround for the airline, which barely averted bankruptcy three years ago.
Since its 1984 launch, Midwest was always known for its product and service, which was better than many of its larger competitors. The airline won praise from business travelers for its all-first-class seating and a full meal service, even on many of the shorter flights. Following the post-9/11 crisis, however, Midwest quickly realized that its product alone would no longer bring in the revenue premium it once received.
The carrier stumbled for several years but was able to win labor concessions and relief from aircraft lessors during the summer of 2003 that kept the carrier out of bankruptcy court. That same year, after facing a barrage of competition from low-cost carriers, Midwest diverged from its original strategy by adding seats to its MD-80 fleet and targeting leisure passengers with a new “saver service.” The carrier kept its Boeing 717 fleet in the traditional all-first-class “signature service.”
Changing the Air Travel Story
Over the last five years, security measures have gradually eroded the way people feel about commercial air travel. Today’s events (“imminent” mid-air bomb plot disrupted) and the government’s reaction to them will, in my opinion, mark the tipping point for an enormous amount of business travel by commercial air.
I’m delighted that the talented and brave investigators foiled this plot, and I’m saddened that we live in a world where something like this could even happen… the fact remains, though, that a key element of our lives has been changed, perhaps forever.
Classic Madison: Mickies Dairy Bar
Mickies Dairy Bar is a Madison Institution. My eldest tells me that they have the best shakes around. One wonders, with the growing redevelopment environment, or, perhaps put another way – the insatiable appetite for a larger tax base – how long places like this will survive.
The Decline of the Newspapers
Circulation for the nation’s daily newspapers has been declining steadily since 1990. In 2004 and 2005, daily circulation dropped 3.5% and the Sunday circulation declined by 4.6%. In the six months period ending in March, 2006, daily circulation fell 2.5% and the Sunday editions fell 3.1%. Readership declined in almost every demographic group and among people with all levels of education, even those with postgraduate degrees. One study found that baby boomers read newspapers a third less than their parents, and generation Xers read them a third less than the boomers.
Venturesome Consumption
Fascinating article in a recent Economist:
In a marvellously contrarian new paper*, Amar Bhidé, of Columbia University’s business school, argues that these supposed remedies, and the worries that lie behind them, are based on a misconception of how innovation works and of how it contributes to economic growth. Mr Bhidé finds plenty of nice things to say about many of the things that most trouble critics of the American economy: consumption as opposed to thrift; a plentiful supply of consumer credit; Wal-Mart; even the marketing arms of drug companies. He thinks that good managers may be at least as valuable as science and engineering graduates (though given where he works, perhaps he is talking his own book). But he has nothing nice to say about the prophets of technological doom.
* “Venturesome Consumption, Innovation and Globalisation”, presented in Venice at the CESifo and Centre on Capitalism and Society conference, July 21st-22nd.
Sharecropping at the Washington Post
Denise Howell has a great post about the Washington Post’s plan to run a mash-up. According to the terms and conditions, as a condition of participating, the artists must agree to “grant and assign all right, title and interest in the Recording to” the Washington Post.
Youtube and other sites have similar “sharecropping terms.
Where You Vote Matters
“Subtle environmental cues can influence decisions on issues of real consequence,” write Jonah Berger and Marc Meredith, two doctoral students at Stanford’s Graduate School of Business, and S. Christian Wheeler, a Stanford marketing professor, in a paper (summary) reported in July’s SER. The “environmental cues” are surprising indeed: according to the authors, the polling places used by voters may influence their choices. One study showed voters in Arizona in 2000 were more likely to support a measure to increase the state sales tax, with the proceeds going to public education, if they voted in a school.
Snowmobile Trailer Protest: “MGE: Your Community Enron”
This morning:
I have no idea what this is about. Previous MG & E notes.
“The Penalty of Leadership”
Peter DeLorenzo noted that Cadillac is resurrecting a classic ad campaign: “The Penalty of Leadership“:
Speaking of Liz’s Boyz, prominently displayed in their new “Life. Liberty. And the pursuit.” ad campaign for Cadillac is the famous, “The Penalty of Leadership” ad written by Theodore MacManus, which was done for Cadillac back in 1915. Gee, we wonder where they got the idea to use that?
Sharing Resources Worldwide
www.sharingresourcesworldwide.org:
It is our mission to make surplus and recycled medical supplies, durable medical equipment and related items/activities available to needy populations around the world in order to improve the health and quality of life of the recipients and to empower the recipients to live with increased dignity, independence, and hope.
This is how we Recycle Resources and Restore Hope… Around the world…..
Great local group.