{"id":1019,"date":"2005-02-08T00:02:56","date_gmt":"2005-02-08T00:02:56","guid":{"rendered":"http:\/\/zmetro.com\/?p=1019"},"modified":"2005-02-08T00:02:56","modified_gmt":"2005-02-08T00:02:56","slug":"changing_planes","status":"publish","type":"post","link":"https:\/\/www.zmetro.com\/?p=1019","title":{"rendered":"Changing Planes at O’Hare: God Smiles on Me!"},"content":{"rendered":"

I’ve now experienced this sort of a very pleasant, unexpected airline experience twice…. in 15 years. Changing planes recently at O’hare, I literally jogged from one end of Terminal B to the far end of terminal F in 9 minutes, trying to catch an early flight to Madison. I arrived at the gate with 6 minutes to spare. <\/p>\n

The gate attendant waved me through and I walked outside, toward the 50 seat jet. A member of the ground crew then told me that because the Canadair jet’s doors had just closed, I had to return to the terminal. During this discussion, the Air Wisconsin<\/a> (United Express) Pilot sent another ground crew member toward me to walk me to the plane. They opened the aircraft and I walked on board….. <\/p>\n

Flying through O’Hare several times the past few months, I noticed that flights are far more reliable and predictable than one year ago. I emailed Kevin LaWare, Air Wisconsin’s Vice President of Operations to thank him for this vast improvement in service. <\/p>\n

LaWare is in a tough spot, working with a bankrupt major carrier (United Airlines<\/a>). United is evidently shopping their regional services again (squeezing prices) – putting some more pressure on Appleton based regional carrier Air Wisconsin. <\/p>\n

I’m impressed with their service and hope they continue to improve.


\nUPDATE<\/b>: The Boyd Group takes apart a recent Wharton Study<\/a> on the airline industry’s problems.<\/p>\n

<\/p>\n

Hot Flash<\/font><\/big> <\/big>– January 31, 2005<\/font><\/b><\/font><\/p>\n

Misinformation. Bad Conclusions. Outright
\nErrors & Idiotic Opinions<\/font>.
\nMore Reasons To Home-School Kids<\/big><\/big>
\nBeyond The 12th Grade<\/big><\/big><\/font><\/strong><\/p>\n

Anybody catch the missive put out on the airline industry last week
\nfrom the Wharton School of Business? <\/small><\/font><\/p>\n

It got great press circulation, which is quite unfortunate for
\nWharton. If the date was April 1st, we might have an explanation as to why the document
\nwas issued. But short of that, all we can say is that higher education in America
\napparently isn’t what it used to be. <\/small><\/font><\/p>\n

The Article, "Why Most Airlines Are Caught In A Tailspin"
\nshould have been titled, "Why Are People Paying To Get An Education From This
\nPlace?" (If you have the stomach, a link to the article is provided below.)<\/small><\/font><\/p>\n

For those into wild conspiracy theories, it could be a terrorist
\nplot. There’s evidence that dozens of university professors have been abducted and forced
\nto live trapped inside the hallowed walls of universities for so long that they’ve plumb
\nlost all contact with the outside world, not to mention reality. The sinister result is
\nthat thousands of American students may be graduating each year without enough real-world
\nskills to properly boil an egg, let alone enter the business environment.<\/small><\/font><\/p>\n

Whatever the reason, it appears that in the rarified intellectual
\natmosphere of these supposed towers of higher learning, some professors are denied any
\nreal counter-input to some of the crackpot ideas they come up with. In their world, they
\nhave no competition – they print and say what they will, and if a student disagrees, it’s
\nF-city for the kid. This system has produced a whole genre of academics that are so far
\nfrom reality that they’ll need a visa to get back. And, referring to the terrorist plot
\nconcept, a lot of what they’re teaching our young what can only be described as
\nintellectual el toro doo-doo.<\/em><\/small><\/font><\/p>\n

\"wharton1.JPGBut, because of the
\n"prestige" of the university, much of this sheer nonsense gets printed as fact.
\nNot just funny opinions, but information that is so inaccurate as to cast doubt on whether
\nsome of these institutions aren’t really just joking. This past week we were regaled by
\njust such an article. <\/small><\/font><\/p>\n

Again, this is from the Wharton Business School<\/u>, no less.
\nNot East Upchuck Community College. It’s from the school that’s just sooo highly rated in
\ncranking out MBA grads in full metal jacket mode to save American business. <\/small><\/font><\/p>\n

Rule One: Get The Grade. Don’t
\nArgue With The Prof.<\/strong><\/font>
\nIn the article, three learned Wharton faculty opined on what’s wrong with airlines today,
\nand what must be done to fix them. What they missed is that before one can promulgate
\nsolutions, it’s always nice to get a grasp of the problem first. One can only hope that
\ntheir students don’t buy into this stuff. <\/font><\/small><\/p>\n

All We Need Is Three<\/strong>. <\/font>The professors have determined that since
\nthere are only three automakers left in America, well, then that’s about the right number
\nof airlines we should have, too. "This industry, like others, is an
\noligopoly,"<\/em> one professor noted. "How many domestic automakers do we
\nhave? Three. The airline industry should be like that."<\/em><\/font><\/small><\/p>\n

Just three airlines is all we need. And, according to the profs,
\nSouthwest is the model. No discussion of the fundamental economic and structural
\ndifferences between airline systems. No investigation of the reasons that Southwest was
\nprofitable last quarter. No, the sages have spoken – just three airlines is all we need.
\nJust like the automobile industry. Come to think of it, when the conclusions from these
\nguys are fully considered, maybe that rule should be applied to B-schools, too.<\/small><\/font><\/p>\n

Don’t Argue The Theory: Airline
\nBankruptcies Definitely Cause Other Bankruptcies<\/strong>.<\/font> Forget readin’ writin’ & ‘rithmatic,
\nthese guys are buried in the wonderful world of theory, often insulated from any taint of
\nreality. In that regard, the Wharton Brain Trust concluded that if one airline goes
\nbankrupt, it will "cut prices" thereby causing non-bankrupt carriers to do so,
\nwith the result being that all carriers will be tossed into the murky depths of
\nbankruptcy, too. <\/font><\/small><\/p>\n

Wow, what a revelation. What great theory.
\nWhat great textbook babble. <\/font><\/small><\/p>\n

And in the real world, as proven over the past two years, it’s a
\ngiant 55-gallon drum of hogwash.<\/small><\/font><\/p>\n

Gee, it seems that these professors missed the story about United
\nbeing in bankruptcy for over two years, and somehow their grand domino theory hasn’t
\nplayed out. To start with, they’ve missed the fact that United has not had any real
\ncontrol over industry pricing. That’s because airline pricing involves a whole lot more
\nthan just costs at one airline, bankrupt or not. Too bad they don’t know this. But the
\nstatement, "The government allows a carrier to dramatically cut costs in
\nbankruptcy and then push others into the financial abyss"<\/em>  has a nice,
\nfront-of-the-classroom ring to it. Even if it is total garbage.<\/small><\/font><\/p>\n

Go ahead, students, be sure to remember this idiotic ooze during
\nfinals. Get the grade. Tell the prof what he or she wants to hear. Then after you
\ngraduate, ignore it, because it’s nonsense.<\/small><\/font><\/p>\n

Mired over their heads in academic quicksand, these professors are
\noblivious to the fact that bankruptcy isn’t the only way that airline costs can be pared,
\nunion work rules changed, and operational systems made more effective. Too much involved
\nin trying to prove theories instead of learning about the industry, they failed to note
\nthat while United wallowed in bankruptcy, other carriers, such as American, Continental,
\nand Northwest, proceeded to get commensurate cost savings without<\/u> filing Chapter
\n11. They latter two did so before going to their unions for concessions. If fuel had not
\njumped 40% in 2004, they likely would not have done so at all. <\/small><\/font><\/p>\n

There goes the sacred textbook theory. It’s a shame these guys
\nhaven’t noticed what’s gone on in the last three years. But, they’re on a roll…<\/small><\/font><\/p>\n

Chapter 11 As A Blood Sport. <\/strong><\/font>Then the Wharton trio danced into
\nglittering generalities. "It’s ludicrous to allow a company to go bankrupt
\nrepeatedly,"<\/em> one of these academic luminaries declared, implying that the number
\none O&D market for legacy carriers is to the local bankruptcy court. Here’s a fact
\nthat their students likely know, but won’t say for fear of getting an "F" in the
\ncourse. Of major airlines, there have been very few "repeated bankruptcies" –
\nContinental being the most obvious before the recent double-header at US Airways – and
\nthat was ten years ago.<\/font><\/small><\/p>\n

Somebody Call AA’s CEO – Quick.
\nHe’s Been In Chapter 11 – And Didn’t Know It. <\/strong><\/font>But having a working knowledge of the
\nairline industry may not be a prerequisite for professorship at Wharton. One noted,
\n"Continental and American, both of which restructured in bankruptcy<\/em>, should
\nbe able to keep flying." Hello, Ivory Tower. Continental came out of bankruptcy a
\ndecade ago<\/u>, which makes the challenges it faces now a non sequitur<\/u> regarding
\nhow it restructured back then. <\/font><\/small><\/p>\n

And American has never<\/u> "restructured in
\nbankruptcy" as these professors so confidently declared. Real world to the Wharton
\nBrain Trust: You don’t know that? Y’all should be pretty embarrassed spouting out stuff
\nthat proves you don’t know what’s going on in the industry. Do you really teach students
\nthis inaccurate drivel? <\/small><\/font><\/p>\n

More Trendy Panaceas<\/strong><\/font>. The professors in the article worship
\nSouthwest, which is okay. But they kept implying that every airline should be like
\nSouthwest. "For instance, Southwest pioneered the concept of standardizing its
\nfleet – using only Boeing 737s and thus saving on training and maintenance costs…"<\/em>
\n  It would be nice if they had any idea what a "737" is.  Or more
\ncorrectly, what 737s are<\/u>.The fact is that Southwest, until it retired its last
\n737-200 last week, actually had three <\/em>types of aircraft. The -200s, the
\n-300\/500s, and the 737-700s. They look a lot alike, but there are fundamental differences
\nin these three types. <\/font><\/small><\/p>\n

What these guys – who, shockingly, are actually teaching our
\nchildren – don’t understand is that a "standardized" fleet has mission
\nlimitations. The 737 low-cost model can’t deliver system passengers and revenue from
\nBangor or Beijing. If all airlines were like Southwest, or just two out of the three these
\nclowns think are all that’s necessary, over half of all US communities that now have
\nscheduled air service would find themselves singing the blues. <\/small><\/font><\/p>\n

News Flash, Professors. There’s
\nSomething Called Alliances.<\/strong> <\/font>These professors just kept on coming with statements that proved beyond
\ndoubt that maybe MBA degrees aren’t all they’re cracked up to be. Get this gem of wisdom: "I’m
\nsure a foreign carrier would buy US Airways because it would like access to the US Airways
\nnetwork," <\/em>one stated. <\/font><\/small><\/p>\n

What we’re sure of, professor, is that you need to get up to speed
\non what’s going on in the airline industry. Hello, up there. US Airways is having trouble
\naccessing the traffic on its own network. Oh, and by the way, have you ever heard of the
\nStar Alliance? Well, we’ll go slow so you can keep up. The Star Alliance is a system that
\nalready allows foreign carriers, like Lufthansa, to get access to the US Airways network.
\nThey don’t need to buy US Airways to get access to that lucrative Elmira-Athens traffic.
\nIf you had a clue about the subject matter, you’d never have made such a moronic
\nstatement.<\/small><\/font><\/p>\n

And, It’s Those Union Rules, Too.<\/strong><\/font> No academic paper from the intellectual
\nstratosphere is complete without a perfunctory attack on those nasty, bat-wielding labor
\nunions. "For instance, legacy carriers are saddled with union rules that boosted
\nsalaries…"<\/em>  Heck, let’s not pop their bubble. We won’t suggest that these
\nguys take the elevator down to where 2+2 really equals four. They don’t need to identify
\nthose "union rules" and whether they even exist in many cases after three years
\nof concessionary contracts at carriers like American, United and others. Or how
\nContinental and Northwest had success in paring operational costs before the recent spike
\nin fuel costs, and how they did it before asking for any labor concessions. <\/font><\/small><\/p>\n

We won’t suggest they take a gander at the current maintenance
\ncontracts at Southwest and at, say, American. Or, the fact that some of Southwest’s
\ncontracts could be a real challenge for the carrier going forward. No, we won’t rain on
\ntheir parade. Facts need to be set aside and made secondary to sacred theory. This is
\nacademia, right?<\/small><\/font><\/p>\n

If you’re interested in visiting intellectual fantasy land, click here<\/a>
\nto view the entire article.<\/small><\/font><\/p>\n","protected":false},"excerpt":{"rendered":"

I’ve now experienced this sort of a very pleasant, unexpected airline experience twice…. in 15 years. Changing planes recently at O’hare, I literally jogged from one end of Terminal B to the far end of terminal F in 9 minutes, trying to catch an early flight to Madison. I arrived at the gate with 6 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,22,12],"tags":[],"_links":{"self":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/1019"}],"collection":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1019"}],"version-history":[{"count":0,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/1019\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}