Monday, August 01, 2005
The Coming Airline Crisis
Bankruptcy and Liquidation
Seems to me that in the near-term, it looks like we're headed for an airline crisis. With high fuel costs, high labor costs, and fierce competition..Several of the 'majors' (or Legacy Carriers) don't look like they'll be around in a couple of years. United, still in bankruptcy, posted a billion dollar plus loss for the 2nd 1/4 of the year. Northwest and Delta are also on shaky ground (figures, I'll have over 100,000 miles on Northwest by the end of the year...) Anyway, just pondering how bad things will get in terms of choice, price, etc. before they get better. At the same time, there's hope that the market will step in and fill any void left by the implosion of one of the big carriers. We'll see.
United Airlines has $1.4B loss in Q2
http://denver.bizjournals.com/denver/stories/2005/07/25/daily56.html
Seems to me that in the near-term, it looks like we're headed for an airline crisis. With high fuel costs, high labor costs, and fierce competition..Several of the 'majors' (or Legacy Carriers) don't look like they'll be around in a couple of years. United, still in bankruptcy, posted a billion dollar plus loss for the 2nd 1/4 of the year. Northwest and Delta are also on shaky ground (figures, I'll have over 100,000 miles on Northwest by the end of the year...) Anyway, just pondering how bad things will get in terms of choice, price, etc. before they get better. At the same time, there's hope that the market will step in and fill any void left by the implosion of one of the big carriers. We'll see.
United Airlines has $1.4B loss in Q2
http://denver.bizjournals.com/denver/stories/2005/07/25/daily56.html
