Air Transport World

Discovering the center. (airline industry)(Editorial)

An interesting theory, that "core theory." Core theory gives a name to the pain of the industry's recent years. Essentially, it says that the airline industry may lack a natural brake against uncontrolled, spiraling, suicidal competition, i.e., no organically protected core of business invulnerable to external or internal abuse, to buoy companies individually and the industry collectively through the hard times.

During the two recessions the industry has encountered since the airline deregulation laboratory opened for business in the U.S., the industry has seemed to have an "empty core. Victories were few and usually Pyrrhic.

The empty-core behavior of those times loaned credence to the thought that controls would be required - either government regulation or "cooperative competition" - to maintain a healthy, safe air transport industry to serve the needs of global commerce. …

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