Meghan- I would like to reply to your comment on the airplane parachute question in a new post simply because it's that good and thought provoking. Your two questions were: How does a failing airline industry pay for parachutes? And, how would it work? First, I'm not convinced the airline industry is as doomed as the headlines portray. Rather, I think the industry is run incorrectly. Now, please excuse my lack of knowledge here, but I believe the business should be able to operate in an efficient market. Our fares would simply provide a profit that covers all expenses including necessary government safety regulations. Governments should not have to play puppeteer or Daddy Warbucks to ensure profit, safety, and antitrust. Yes, I acknowledge that the business is extremely complicated as a capital intensive, economies of scale, over-regulated, extremely competitive, terrorist target. However, nothing there convinces me it can't be run laissez faire. Also, if you read between the "no more food," "chapter 11 for the 6th time," "negative earnings for huge airline" headlines, you'll see several have been quite profitable, there are countless options for travel, and the future should be bright. For example, Southwest has realized 34 straight years of profit with $543M in 2006, American recorded its first profit since 2000 last year with $231M profit, and Continental posted $343M. The American industry as a whole realized over $2B last year, net. I think the options comment is pretty obvious, but just select any route on kayak.com to confirm. Last, I think the "Open Skies" agreement signed last month will bring a world of change to International air travel. It is the first step towards removing power from government sponsored airlines. First Europe, soon North Korea.
As for the process, my idea was not an orderly Skydive America experience, but rather every-man-for-himself madness as your plane is split in two clear down the middle. If you want to wear the parachute all flight, that would be your choice. However, it was brought to my attention by another reader that the industry has actually given much thought to this possibility. There is currently a patented system where every chair is on rollers to slide out a back hatch, release a parachute, and float you to safety without even unclasping the seat-belt. Check it out:
Patent 5979829.
P.S. If you care to read a very boring, 17-page paper on airline industry profitability and cycles,
click here. Personally, I think a quick skim of the charts tells the story.