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Back to The airline CEO putting Starlink on every plane, with Scott Kirby.

Why Is Air Traffic Control the Bottleneck for Airlines?

Scott Kirby says air traffic control, not airport capacity, is what limits the airline. He puts air traffic control at 90% of the problem. Modernizing it can be done. The block is paying for a project that takes five to ten years with a budget that lasts one year.

A shutdown often means the money arrives two months into the fiscal year. The agency then spends about three months ramping up, about four months working, and the last three months shutting the project down, because the authorization does not run past twelve months. Kirby calls that cycle absurd.

The airlines would pay for the work if they were allowed to. He thinks a private effort could finish the job in two to three years. Privatizing the FAA is politically controversial. Until air traffic control can handle more flights, that system is the cap on how many planes the airlines can add.

Transcript

The airline CEO putting Starlink on every plane ·

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  1. Why Did United Buy Planes During COVID?Scott Kirby says United bought planes during COVID because the experts were wrong and every other long-haul airline was shrinking.
  2. Why Does United Own Its Reservation System?Scott Kirby says United owns its reservation system because the airline locked into a legacy mainframe it already owned, and the later owners did not want to…
  3. When Will United Show Weather Delay Odds?Scott Kirby wants United to show a weather-impact percentage on the passenger screen by Christmas, in time for the weather trouble that comes with Christmas…
  4. Why Does United Say Fast Wi-Fi Beats Free Wi-Fi?Scott Kirby says fast internet is the real value of Starlink on United Airlines, and free is not the value proposition.
  5. Why Does Wall Street Hate United Aircraft Bets?Scott Kirby says Wall Street almost always hates the big things United does, and aircraft investment is one of them.
  6. Why Won't Boeing and Airbus Build New Planes?Scott Kirby says Boeing and Airbus will not replace the 757 because the two manufacturers hold a global duopoly and have quietly agreed, though not in any…
  7. Why Do Low-cost Airlines Keep Failing?Scott Kirby says low-cost airlines in the United States keep failing because they left the cheap airports that made the model work and then could not charge…
  8. Why Does United Limit Where It Flies?Scott Kirby keeps United Airlines disciplined by limiting where it flies. United only flies to its hubs.
  9. Why Should an Airline Cancel Routes That Lose Money?Scott Kirby says an airline should cancel any route that loses money, including a route people defend as strategic. The route network is the foundation.
  10. Why Do Credit Card Miles Look Like Pure Airline Profit?Scott Kirby says credit card miles look like pure airline profit because people see only the revenue.

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