The focus locally has been on the DR's mea culpa for raising taxes, airport charges and aviation fuel taxes. Also on the rising cost of fuel itself. All true factors.
But in the case of American Airlines, these have just worsened an already critical situation caused by an internal problem -- very high labor costs.
For years, American Airlines has been coping with its rising labor costs. While the current cost structure is unsustainable as is, and now the rising costs of fuel are forcing major changes, and thus the cuts.
Airlines such JetBlue and Air Europa, for example, do not have the additional burden of the labor costs and thus are better able to survive the high fuel costs.
But in the case of American Airlines, these have just worsened an already critical situation caused by an internal problem -- very high labor costs.
For years, American Airlines has been coping with its rising labor costs. While the current cost structure is unsustainable as is, and now the rising costs of fuel are forcing major changes, and thus the cuts.
Airlines such JetBlue and Air Europa, for example, do not have the additional burden of the labor costs and thus are better able to survive the high fuel costs.