Sunday, February 5, 2012

An Airline That Makes Money. Really.

Wall Street Journal
By MATTHEW KAMINSKI

Airline business: Mere oxymoron or investor death wish? Cumulatively, America's airlines have lost $34 billion since 1947. In the last decade, five legacy carriers landed in Chapter 11 bankruptcy—US Airways twice. "How do you become a millionaire?" mused Warren Buffett, who had an unhappy dalliance with US Airways. "Make a billion dollars and then buy an airline."

The commercial jet came of age in Seattle, yet when Bill Ayer quotes another Buffettism at a business conference here—"If a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down"—the audience erupts in laughter. Mr. Ayer knows his gallows humor. He runs America's seventh-largest carrier, Alaska Airlines.

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