That is true. I sometimes think employees look at X about profit and go, "How come this is not going into my pocket?" But what is an acceptable level of profit, what are the profits used for. If it is to enhance the company's equity to give the ability to raise money in the equity market at lower costs than borrowing, then profit is a good thing. If it is to pay dividends to attract additional capital so airplanes are purchased and not leased then it is a good thing. However if it goes to excessive bonuses for top management in a marginally profitable company then that is a misuse. Now I will agree that CEO leadership in many cases leaves much to be desired. An issue of ATW in 2002 had an article about “Airline Management a dying breed”, the article basically said no one wants to do it. The good track record CEO’s are going to other industries. With tremendous, payrolls, overhead burdens, and extremely low margins, there is no tried and true path to success. Most have tried to increase market share, but this has lead to low price and ridiculous breakeven load factors in 95% range. What is management supposed to do?
