greatansett
Posts: 485
Joined: Thu Aug 28, 2003 5:38 pm

Besides US Air Who Else Might Fall In The USA

Tue Apr 20, 2004 10:24 am

IM just Wondering, besides US AIR, what other airlines within the States are close to collapes, please explain your answer?
Ron Paul 2012
 
Cory6188
Posts: 2609
Joined: Mon Feb 02, 2004 12:29 am

RE: Besides US Air Who Else Might Fall In The USA

Tue Apr 20, 2004 11:33 am

UA came pretty close to collapsing as well, but they have since stabilized. Things are looking pretty bleak at AA as well.
 
NIKV69
Posts: 10889
Joined: Wed Jan 28, 2004 4:27 am

RE: Besides US Air Who Else Might Fall In The USA

Tue Apr 20, 2004 11:37 am

AA will survive, UA has flirted with death but hung in there, I don't think any other US carrier is as close to the end as USAirways is.
Hey that guy with the private jet can bail us out! Why? HE CAN AFFORD IT!
 
warren747sp
Posts: 979
Joined: Sat Feb 21, 2004 7:51 am

RE: Besides US Air Who Else Might Fall In The USA

Tue Apr 20, 2004 11:38 am

UA would have to come to mind. But if UA collapses, would AA, DL or just LCC benefit?
747SP
 
freshlove1
Posts: 1245
Joined: Thu Jan 15, 2004 1:38 pm

RE: Besides US Air Who Else Might Fall In The USA

Tue Apr 20, 2004 11:38 am

No one will fail, even if they have to go Chapt.11 they will reorganize and come back stronger.
 
pilottim747
Posts: 1577
Joined: Tue Jul 17, 2001 2:34 pm

RE: Besides US Air Who Else Might Fall In The USA

Tue Apr 20, 2004 11:43 am

Freshlove1, that's what I'm thinking. I think that all the airlines will survive this hardship. I'm optimistic that US Airways will be able to pull out of its current situation.

pilottim747
Aviation Photographers & Enthusiasts--Coordinate your life.
 
cloudy
Posts: 1613
Joined: Sat Apr 06, 2002 3:23 pm

RE: Besides US Air Who Else Might Fall In The USA

Tue Apr 20, 2004 2:08 pm

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
Posts: 101
Joined: Mon Nov 24, 2003 6:57 am

RE: Besides US Air Who Else Might Fall In The USA

Tue Apr 20, 2004 2:24 pm

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.

Unicorn
 
a380900
Posts: 797
Joined: Fri Dec 05, 2003 11:26 pm

RE: Besides US Air Who Else Might Fall In The USA

Tue Apr 20, 2004 2:25 pm

Definitely the Bush regime.

[Edited 2004-04-20 07:26:59]
 
John
Posts: 1253
Joined: Sat Sep 18, 1999 10:47 am

RE: Besides US Air Who Else Might Fall In The USA

Tue Apr 20, 2004 2:53 pm

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
Posts: 4516
Joined: Wed Feb 28, 2001 12:35 pm

RE: Besides US Air Who Else Might Fall In The USA

Tue Apr 20, 2004 3:02 pm

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

J

Who is online

Users browsing this forum: 3AWM, 767333ER, Baidu [Spider], Cory6188, denverdanny, FlyCaledonian, GBerg, keesje, lightsaber, MrHMSH, Okcflyer, Sooner787, Stevecha, StTim, USPIT10L and 286 guests