"The conference room had that eerie quiet that follows a tense conversation. Our executive team sat at the table, a mixture of Japanese, Americans, and Europeans attempting to come to grips with the dramatic numbers in front of us. Over the preceding year, the company's revenues had dropped by nearly 30%. Three of its four profit centers were hemorrhaging money, and the fourth was struggling to break even. Our stock was taking a pounding. It struck me then that we were in the Doom Loop ...."
This is the first I've heard this concept labeled. Yet, "Doom Loop" seems to be fitting.
If we are speaking in generalities or on a macro level as suggested, I would agree that US Airways could be viewed as a traditional major that is in a Doom Loop. Not to get into specifics, but they remind me a lot of TWA. I always thought both of these carriers did not have the foresight to alter their business paradigm, so to speak, to adapt to this always changing industry.
Of course, this is a very general statement to make. But then again, we are talking in generalities.
