Seeing the sector is anticipated to lose $5bn this year, and more in 09, who managed strategy well over the last 5 years? .. which of course would include anticipating and planning for the inevitable down-turn? Competent strategic management for most firms would imply [a] anticipating a scenario in which demand would take a tumble – for whatever reason .. doesn’t have to be due to oil prices [b] holding back on expansion plans that would be marginal or unprofitable under lower-demand conditions [c] conserving cash [d] selling off assets or business whose value would likely collapse in the downturn.
Next – who is the smart money on during the down-turn? Those who did some or all the above should be in great shape now to cash in on their good sense – there will be fire-sale oppportunities out there to acquire assets or whole businesses at knock-down prices. I see, for example, Lufthansa taking a stake in Brussels Airlines.