Philip Baggaley
Philip Baggaley
chapter file indicate likely northwest
These disclosures indicate that Northwest will very likely file for Chapter 11 shortly, probably on Sept. 14.
bankruptcy company early example felt financial heading position pursue relatively stronger survive toward
They are another example of a company that started out in a relatively stronger financial position than their peers, and they felt they were in better position to survive a shakeout. They didn't pursue cost-cutting as aggressively as they would have if they were heading toward bankruptcy early in the (industry's) downturn.
aircraft assets borrow carriers cushion face fail financial forced gradually legacy quickly recent
During the recent downturn, the legacy carriers have gradually used up their financial cushion of aircraft and other assets they can borrow against. If they are forced to face a new crisis, they may fail more quickly than they have in the past.
fuel losses prices year
Probably not. Particularly with fuel prices where they are. But they have been narrowing their losses every year in bankruptcy.
cash decline flow free industrial less pay peak percent ratio
Usually, one would see a ratio of less than 50 percent for industrial and transportation companies; however, that's the peak and from there, it should decline as they use free cash flow to pay down debt.
bankruptcy both carriers continue effects expect major
I wouldn't expect to see any major effects of these bankruptcy filings on passengers. I think both carriers will restructure successfully and continue flying.
pension
I would expect, eventually, they will have to terminate the pension plan.
extend flight fly found hand labor number types work
Maintenance work is often outsourced, especially at the low-cost carriers. I think it weakens labor's hand generally, but I wouldn't extend this to all other types of labor negotiations. American found out a number of years ago they couldn't fly through a flight attendant strike.
extend flight fly found hand labor number types work
Maintenance work is often outsourced, especially at the low-cost carriers, ... I think it weakens labor's hand generally, but I wouldn't extend this to all other types of labor negotiations. American found out a number of years ago they couldn't fly through a flight attendant strike.
agreement avoiding bankruptcy card cash chances collateral credit disclosure dollars extend fuel indicate million post prices processing recent slim
The recent surge in fuel prices and Delta's disclosure that it will have to post 750 million dollars of cash collateral to extend its credit card processing agreement indicate that the airline's already slim chances of avoiding bankruptcy are dwindling rapidly.
fuel labor likely major three
Those three factors, pension, labor and fuel prices, will likely be the major consideration as they come up to Oct. 17.
fuel labor likely major three
Those three factors, pension, labor and fuel prices, likely were the major considerations.
changes managing northwest quite strike
It's one thing to say that Northwest is managing through the strike impressively well. It's quite another to say they'll be able to get the concessions and other changes they need by mid-October.
That is high, particularly for an investment-grade company.