Thursday, October 21, 2004
The Winter of Their Discontent
$23 Billion in Debt and Counting
Living in DC is great for travel. There's three major airports within a short radius, we're a hub for USAir, Independence, Southwest, and United, plus a gateway to Europe. Generally, flying out of DC to another major metro area is pretty inexpensive, in fact, I can't think of a flight I've taken in the last couple of years that's cost more than $300 (Even to Europe!). But with more of the big airlines headed for bankruptcy and even start ups like Independence Air having trouble, I've begun to notice fares headed up, not everywhere, but it's happening.
Take for example a flight I have coming up to Montgomery Alabama in November. Leaving on a Sunday and returning on a Monday. No big deal, yet the cheapest ticket I could find out of Reagan National was $500 and included two connections.
Reports are out this week that Delta, Independence Air, ATA and possibly Northwest will fall into bankruptcy and analysts speculate that one or two of the legacy carriers will be liquidated. That could mean, at least in the short term, some painful changes, price hikes and travel bottlenecks as the industry moves from its current business model to a newer, leaner structure.
Let's hope that on the other side of this crisis is an industry that will still allow us to travel safely, conveniently, and cheaply.
Major US airlines descend into loss, more bankruptcies seen
http://www.channelnewsasia.com/stories/afp_world_business/view/112667/1/.html
Airlines brace for crisis: Labor, non-labor cuts expected as fuel costs soar.
http://www.sfexaminer.com/article/index.cfm/i/101804n_airport
Living in DC is great for travel. There's three major airports within a short radius, we're a hub for USAir, Independence, Southwest, and United, plus a gateway to Europe. Generally, flying out of DC to another major metro area is pretty inexpensive, in fact, I can't think of a flight I've taken in the last couple of years that's cost more than $300 (Even to Europe!). But with more of the big airlines headed for bankruptcy and even start ups like Independence Air having trouble, I've begun to notice fares headed up, not everywhere, but it's happening.
Take for example a flight I have coming up to Montgomery Alabama in November. Leaving on a Sunday and returning on a Monday. No big deal, yet the cheapest ticket I could find out of Reagan National was $500 and included two connections.
Reports are out this week that Delta, Independence Air, ATA and possibly Northwest will fall into bankruptcy and analysts speculate that one or two of the legacy carriers will be liquidated. That could mean, at least in the short term, some painful changes, price hikes and travel bottlenecks as the industry moves from its current business model to a newer, leaner structure.
Let's hope that on the other side of this crisis is an industry that will still allow us to travel safely, conveniently, and cheaply.
Major US airlines descend into loss, more bankruptcies seen
http://www.channelnewsasia.com/stories/afp_world_business/view/112667/1/.html
Airlines brace for crisis: Labor, non-labor cuts expected as fuel costs soar.
http://www.sfexaminer.com/article/index.cfm/i/101804n_airport
