A Little Advice For U.S. Carriers, From Robert Milton

Milton's advice to his U.S. contemporaries: "They need to focus on what they're doing. Low-cost carriers are here to stay. JetBlue is the real deal."

"My encouragement would be to rethink the business," Milton advised. "You're going to have to compete with JetBlue and new airplanes. How are you going to get new airplanes, creature comforts for the customer, and make it all hang together with much lower fares than today?"

Milton sees Delta's "Simplifares" as a good first step. "It will wind up at Southwest and JetBlue pricing," he believes. "So he who has the courage to go first will get a strong leadership position out of it. But he who goes first has to have his cost structure right to do it. And that's the trick."

TAGS: aircanada

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