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.
air consumer depressing economic effect energy growth higher indirect longer prices resulting slow storm
In the longer term, if the storm and resulting higher energy prices slow economic growth and consumer spending, it will have an indirect depressing effect on air travel.
factor huge improved improvement picture revenue swing
The revenue picture has improved and this is a huge change. The big swing factor is the long-awaited improvement in pricing.
appears chance drive fairly good key takes
If you look at each one of these key requirements, in isolation, it appears to be a fairly good chance it will happen. But it only takes any one of them to fail, and it could drive American into bankruptcy.
bargaining contract employee encourage future groups improve join outcome position unions
In addition, such an outcome would encourage other employee groups to join unions to improve their bargaining position in future contract talks.
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.
added bankruptcy financial hasten likely occur pressure within
The added financial pressure may hasten an already likely bankruptcy filing, which will probably occur within weeks.
avoiding bankruptcy chances slim
The airline's already slim chances of avoiding bankruptcy are dwindling rapidly.
bankruptcy delta easier further northwest situation
A situation where you have United, Delta and Northwest all in bankruptcy does make it easier to think about further consolidation.
change daily gut subject
It's very much a gut feel, subject to change on a daily or hourly basis.
against approving change eager groups including labor precedent switch toughest voted
It won't take much of a switch to change the result, ... There's also the precedent of the other labor groups approving it, including the mechanics, who were thought to be toughest sell. I don't think even those who voted against it are eager to go into bankruptcy.
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.
almost certain losses possibly profit small united
It's almost certain losses will decline. American, Continental and possibly United could show a small profit this year.
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.