In a note to clients, JPMorgan analyst Jaime Baker cut Continental and United Airlines parent UAL Corp. to "Neutral" from "Overweight." He also reduced his rating on U.S. Airways Group Inc. to "Underweight" from "Overweight."
Which one of the Star members will be the first to file for bankruptcy late 2009 or 2010? With creidt markets so tight might end up a Chapter 7 liquidation for someone. Then the assets would be sold off in pieces. Just not healthy news no matter how you look at this. Perhaps this will accelerate merger speculation.
Eghansen From , joined Dec 1969, posts, RR:
Reply 1, posted (5 years 10 months 2 weeks 4 days 18 hours ago) and read 2283 times:
United appears to have the biggest problems. Their gross profit was slightly negative which means they did not make enough from ticket sales to cover their fuel bill and pay frontline staff (FAs, pilots, ramp workers, ticket agents). United also has the oldest fleet.
US Airways and Continental both covered their line expenses and had $1 billion plus left over, but they went negative when the administrative overhead was subtracted.
AA737-823 From United States of America, joined Mar 2000, 6022 posts, RR: 12
Reply 4, posted (5 years 10 months 2 weeks 4 days 3 hours ago) and read 1647 times:
Quoting FFlyerworld (Thread starter): Which one of the Star members will be the first to file for bankruptcy late 2009 or 2010?
Wait a minute... times are bad, and the airlines release some negative results, sure. But you're already ringing the CHAPTER 7 bell of doom? Let's calm down here.
Oh, and the answer is United.
But still, it's a bit premature to get all carried away.
Quoting Oa412 (Reply 3): Well CO did pretty much pave the way for the rest of the big 6 given that they were twice in Bankruptcy long before any of the rest of them (save, of course, for AA).
Just as a follow-up to that comment, the airline you're thinking of is Braniff, with TWA an arguable but close second, along with CO. And, through the years, there have been a dozen Pan Am's, Midways, Easterns, et cetera!