Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Downgrades And Negative News -Star Partners  
User currently offlineFFlyerworld From United States of America, joined Apr 2008, 335 posts, RR: 0
Posted (5 years 6 months 2 days 15 hours ago) and read 2264 times:

Things not looking too rosey for members of the Star Alliance. Imagine for CO leaving SkyTeam this fall wasn't expecting this...

http://www.marketwatch.com/news/stor...D81%2DB351D553CBEF%7D&siteid=yhoof

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.

5 replies: All unread, jump to last
 
User currently offlineEghansen From , joined Dec 1969, posts, RR:
Reply 1, posted (5 years 6 months 2 days 15 hours ago) and read 2204 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.


User currently onlineMaverickM11 From United States of America, joined Apr 2000, 17657 posts, RR: 46
Reply 2, posted (5 years 6 months 2 days 14 hours ago) and read 2010 times:



Quoting FFlyerworld (Thread starter):
Imagine for CO leaving SkyTeam this fall wasn't expecting this...

Wouldn't be the first time CO was in an alliance with multiple bankrupt US partners Wink



E pur si muove -Galileo
User currently offlineOa412 From United States of America, joined Dec 2000, 5303 posts, RR: 25
Reply 3, posted (5 years 6 months 2 days 14 hours ago) and read 1957 times:

Quoting MaverickM11 (Reply 2):
Wouldn't be the first time CO was in an alliance with multiple bankrupt US partners

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).



[Edited 2009-04-22 13:58:26]


Hughes Airwest - Top Banana In The West
User currently offlineAA737-823 From United States of America, joined Mar 2000, 5873 posts, RR: 11
Reply 4, posted (5 years 6 months 2 days 1 hour ago) and read 1568 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).

Hah, guess again. CO didn't start that game.


User currently offlineAA737-823 From United States of America, joined Mar 2000, 5873 posts, RR: 11
Reply 5, posted (5 years 6 months 2 days ago) and read 1554 times:



Quoting AA737-823 (Reply 4):
Hah, guess again. CO didn't start that game.

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!


Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
TACA, TAM And Avianca To Star Alliance? posted Thu Feb 21 2008 19:58:09 by SJOtoLIR
Latest Update On TP Fleet And Other News. posted Sat Dec 1 2007 01:08:29 by CV990
E0 And MY: Looking For Partners Or Possible Buyers posted Fri Jun 29 2007 03:49:07 by ThirteenRight
Turkish And Austrian To Become Partners (miles) posted Sat May 26 2007 10:52:08 by TurkishWings
Flyington Affirm A332F Order And More News posted Wed May 9 2007 09:50:03 by PanAm_DC10
Iberia To Boston, Washington DC...and More News posted Fri Jan 12 2007 14:31:57 by IberiaA319
SAA Has New Logo And Hands Out Star Alliance Book posted Mon Feb 6 2006 21:29:43 by Ibhayi
QX Q400 And CRJ News... posted Tue Jan 31 2006 13:40:02 by Cessna172RG
NW And Newco News posted Thu Jan 5 2006 12:45:08 by LUVRSW
AS Etops Rumors And QX News, Hold Your Horses! posted Thu Nov 17 2005 10:11:26 by Cessna172RG