Cloudy From , joined Dec 1969, posts, RR: Reply 6, posted (9 years 8 months 6 days 22 hours ago) and read 3037 times:
UA and perhaps Midwest Express are still in danger, AA may be in the next year. Northwest and Continental are probably safe, as is Delta(Though is is having some problems now). ATA may be in danger if there is another downturn.
Good times can kill airlines just like bad times can, if competitors are strong and the airline is very weak to begin with(That is, when most assets already have loans against them). When times are good, aircraft and other assets rise in value. In bankruptcy court, it is the creditors and judge who decide if and how an airline keeps operating. When asset values are high, the liquidation option looks more attractive.
Unicorn From Vatican City, joined Nov 2003, 102 posts, RR: 1 Reply 7, posted (9 years 8 months 6 days 21 hours ago) and read 2989 times:
Delta is also in deep financial straits.
They have some of the highest labour costs in the industry, are hemmoraging red ink, have a completely unhedged fuel position during a period of sky high fuel prices, and have a mountain of debt and pension plan commitments.
The government may have allowed them to defer their pension problems, but the rest are all conspiring to undermine their position.
They could be in Chapter 11 before the end of the year, and that may only be a stopover on the way to Chapter 7.
With that said however, US Airways looks a lot more vulnerable, and may be forced into bankruptcy before the end of the year.
John From United States of America, joined Sep 1999, 1374 posts, RR: 6 Reply 9, posted (9 years 8 months 6 days 21 hours ago) and read 2933 times:
I'll say this again, take a look at the STAGGERING lossses at UA, AA, DL and NW for 2003!! For cripe sakes people, US Airways obviously posted a loss for 2003, but it was a tremendous improvement over 2002 and nowhere near as deep as the above mentioned carriers! Do your homework folks and quit pointing the finger at US Airways, there's plenty of cash reserve for now, load factors are way up and I believe 2nd quarter results will reflect much improvement.
Artsyman From United States of America, joined Feb 2001, 4745 posts, RR: 36 Reply 10, posted (9 years 8 months 6 days 21 hours ago) and read 2911 times:
UA came pretty close to collapsing as well, but they have since stabilized.
Have they, the most recently released UAL report (Feb I think) still has them losing between 6 million and 9 million dollars per day. This is after the steep pay cuts, and while UAL continues trading under protection and while they continue to not pay their bills.
While they are not imminently in panic, they are still in serious trouble, and have lots of work to do to survive