North American railroad companies learned decades ago not to build too much capacity into their networks and fleets
The strategic rail,plan is to avoid a church like investment in a building that expects a Christmas attendance every Sunday
A 7 June Bloomberg report on the A380 aircraft shows that Airbus Group SE is set to face a fresh challenge in reviving sales of its flagship A380 superjumbo as used A380 aircraft hit the market. To read the entire article, go to http://bloom.bg/1KjjRSx
“Used A380s are likely to be available at a fraction of the plane’s $428 million list price”. Bloomberg writes that without a spate of new sales Airbus will face empty production slots from 2018.
These aviation economic lessons apply in each sector of the transport and logistics world from aviation to railways and into maritime.
Over capacity kills the business in the reoccurring down economic cycles.