United, American Fight Negative Perceptions

Stock quotes in this article: UAUA , AMR , LUV , BA , JBLU , AAI  

Among industries sapped by low consumer spending, there's one that's been especially hard-hit, beset by both falling revenue and ongoing customer dissatisfaction: the airlines.

UAL's(UAUA Quote) United Airlines, AMR's(AMR Quote) American Airlines and even budget staple Southwest Airlines(LUV Quote) are seeing more empty seats, as fewer vacationers and business travelers travel by air.

The news has been just as bad for aviation manufacturers. Boeing's(BA Quote) first-quarter earnings fell 50% after sales of commercial and defense aircraft slowed. According to the General Aviation Manufacturers Association, shipments of small planes in the first quarter fell 41% from a year earlier. The group estimates the industry has shed 15,000 jobs in the past year.

If everything seems stacked against your industry, you have two options: hunker down and wait for a miracle or face the crisis. Instead of downplaying your poor prospects, acknowledge them and then change the subject to something more positive.

Consider the way private-plane manufacturers have defended themselves against public attacks on their products. After corporate jets became much-mocked bit players in the carmaker bailout saga, the market for such high-ticket vehicles dropped off. As stockholder and employee resentment brews, fewer companies can justify such perks for their top execs.

The General Aviation Manufacturers Association, a trade group for small aviation companies, quickly reframed the debate. The group's chief executive, Pete Bunce, pointed out that the "aviation industry leads the world in innovation and remains one of the few American industries with a positive balance of trade."

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