Why did Donald Trump’s airline go bust?

Actually quite simple.

He bought the shuttle service from Eastern Air Lines,[1, which at that time was more or less like the current concept of Ryanair — a bus with wings.

The clientele didn’t want anything else.They just wanted to commute between Boston, New York and Washington. Nothing more. So the decisive price and reliability.

But Trump wanted to turn it into a luxury line.He raised prices dramatically and had the planes expensively rebuilt and equipped. [2

He also constantly tinkered with the company, got involved with the staff and the service went down the creek. [3

It is obvious that this cannot go well.The two things that made Eastern Shuttle – low prices and high reliability — were both lost.

Imagine you are constantly flying between Berlin and Munich, several times a week, and have to bear the costs yourself.So you fly with Eurowings or similar, not with Emirates or Lufthansa.

Then one eurowings buys, doubles the prices, equips the planes with leather seats and gold.And he sits down with the unions, who are going on strike promptly.

Are you still flying with it?Probably not. You switch to EasyJet or similar.

And so did Trump Shuttle, thanks to the greatest businessman of all time. [4

If you think such an airline with a limited audience cannot be successful, the remnants of Trump Shuttle have been purchased and are still operated quite successfully as American Airlines Shuttle. [5

Apparently it helps to understand the market and to act accordingly.Amazing, isn’t it?

Update

Jan Krusat drew my attention to something — Here’s a response to Quora EN from a former Eastern pilot, which largely confirms the story above and underlines: Ron Wagner’s answer to How did Donald Trump build a multi billion empire if He’s so stupid?

Footnotes

[1 Eastern Air Lines Shuttle – Wikipedia

[2 Trump Shuttle – Wikipedia

[3 Donald Trump’s airline went from opulence in the air to crash landing – The Boston Globe

[4 Page on washingtonpost.com

[5 American Airlines Shuttle – Wikipedia

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