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Strategies & Market Trends : Mu Gamma Lambda
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To: Jorj X Mckie who wrote (7217)9/17/2001 4:06:20 PM
From: Original Mad Dog  Read Replies (2) of 10077
 
I think that's right.

Two possible results of that math:

1. In the Midwest and East, high speed rail suddenly makes a lot more sense than it did. Of O'Hare and Midway's thousands of flights a day, probably 50 are to Detroit (300 miles); another 30 or so to St. Louis (290 miles); another 20 to Cincinnati (300 miles); another 50 to Minneapolis (380 miles). And countless others to smaller towns like Peoria and Grand Rapids. Those are the flights for which driving is now an alternative that will appeal to people. The irony is that more of them will die in auto accidents than were killed on the airplanes last week, but such is the visceral reaction to the horror.

2. Southwest (LUV) is one of my favorite companies. Herb Kelleher was quoted a thousand times as saying their business plan assumed that the biggest competition to their short routes was not other airlines. It is the car. I think they are going to see a big dropoff in business short term.
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