Philip Baggaley
Philip Baggaley
airlines seem shake
As we've seen, these airlines never seem to shake out.
airline anxious bankrupt below business company cutting fear levels lose passenger service suspicions wary
A bankrupt airline is anxious not to lose customers, especially business travelers, and may be wary of cutting service below competitors' levels for fear of confirming passenger suspicions that the company is not long for this world.
airlines domestic fuel helping high improved load offset pricing
American Airlines is benefiting from much improved pricing and load factors, particularly in the U.S. domestic market, which are helping to offset very high fuel prices.
airlines amount carries divert fair fix helps percent problem revenue shutting united
United shutting down doesn't necessarily fix the problem for other airlines, but it helps a lot. It does divert a fair amount of revenue to other airlines -- United carries about 17 percent of the nation's traffic.
airline attention cooperation management mergers require short struggling supply
Airline mergers are very difficult. They require a lot of cooperation from labor, management attention and financing. All those things are in short supply when you're just struggling to survive.
airline assured cash difficult dollar dragging last purely till trouble wait
An airline doesn't wait till it's down to its last dollar to file. It'll be difficult to keep dragging it out. Without new financing, from a purely cash perspective, they are already in trouble to be assured they can reorganize in bankruptcy.
airline assured cash difficult dollar dragging last purely till trouble wait
An airline doesn't wait till it's down to its last dollar to file, ... It'll be difficult to keep dragging it out. Without new financing, from a purely cash perspective, they are already in trouble to be assured they can reorganize in bankruptcy.
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.
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.
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.
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.