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« Close to the Consumer : the Filet-O-Fish Story ! | Main | The M&M's Time Square Superstore ! »

February 21, 2007


Your post is fully in line with one of the classic jokes in the airline business. That's the way it goes:

Question : How do you become a millionaire in the airline business ?
Answer: Start with a billion !

It goes beyond cost of capital, the fact is that the entire airline industry since its inception has only produced a negative return. And the NPV for the future is frightening.

That was a joke from Richard Branson !

Warren Bufffet legendary wisdom :

“If a capitalist had been present at Kittyhawk back in the early 1900s, he should have shot Orville Wright. He would have saved his progeny money. But seriously, the airline business has been extraordinary. It has eaten up capital over the past century like almost no other business because people seem to keep coming back to it and putting fresh money in..."

cont'd :

"...You've got huge fixed costs, you've got strong labor unions and you've got commodity pricing. That is not a great recipe for success."

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