Sunday, 30 January 2011

Why the economy is slowing, one of the many reasons.

I was on a United Airlines flight from JFK to NYC today. I flew business so had a few expectations as to service and function having paid more than double the economy rate for my travel. The seat I was in was broken. Nothing worked. This is actually four – for – four for United for me. The last four flights have all been premium and all have had something wrong.

I was offered an “apology” card for this. I fly business for two reasons, first the seat as I travel long distances and next power so I can work. An apology card gives me “miles” that I am unlikely to ever use and do not care about.

First class was far from full. The other business class section was also not full.

No offer to be moved to the forward cabin in either business or first was made, just another apology card.

Moving a customer in a broken seat in a premium service to first when it is half empty is nothing to the airline. IT costs the same once the plane is in flight. Leaving a customer in the seat on the other hand is a cost. It creates bad will. I shall actively try not to fly United from now on and when I do it will be only from necessity and under duress.

Now billions of dollars have gone to bailout the airlines.

I have flown many new international carriers that have newer jets and are able to manage their business better than the incumbent, but we persist with this idea of keeping zombie businesses alive.

Let them die.

Capitalism is about competition and change. Those that can survive will, the others need to be allowed to die. We the consumers win when we allow dysfunctional companies such as United Airlines and the many US banks to fail.

Why is the economy slow? Well one reason is that we reward failure and punish effort. New dynamic companies that could offer more are disadvantaged in order to offer a subsidy to zombie companies.

So I say, let the undead rot in peace, allow fresh new blood to emerge.

We just get companies such as United Airlines and their lack of care and service when we allow companies to live past their time.

Pull the plug. We need to stop funding failures.

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