Further RJ Reductions.....

[JoeMerchant]

Unfortunately I think everyone is in store for cutbacks.....This is getting serious.....

http://biz.yahoo.com/ap/080316/jpmorgan_bear_stearns.html

 

[Cpt Oveur]

Bears Sterns, like many other investment firms, needs a large amount of cash on hand to conduct daily business transaction in various markets, NASDAQ, NYSE, etc. The weakening dollar is killing these companies, and the combine that with higher oil prices, and I think we could see consolidation here come just that quickly.

 

[JoeMerchant]

Bears Sterns, like many other investment firms, needs a large amount of cash on hand to conduct daily business transaction in various markets, NASDAQ, NYSE, etc. The weakening dollar is killing these companies, and the combine that with higher oil prices, and I think we could see consolidation here come just that quickly.

.....worse case scenario could be a "run on the banks".....then we will wish it were just a recession....If panic sets in this could get a lot worse....

 

[CoolSidePillow]

ALL regional airlines should fly turboprops for regional hub feed. Lower fuel consumption, good short field performance, and ability to carry 70 cheaper than 50 people. The majors should go back to flying short haul flights on 100 seat aircraft perhaps the larger EMB190 series. That what put the routing system back into perspective, take the children out of the jets, provide better service on those longer routes that RJs fly, reduce flights and ease the congestion at the problematic hubs. It will also keep the flying at the major level.

 

[Andy]

.....worse case scenario could be a "run on the banks".....then we will wish it were just a recession....If panic sets in this could get a lot worse....

A run on the banks is NOT the worst case scenario. And this will get much worse; worse than a run on the banks scenario.

 

[Andy]

Bears Sterns, like many other investment firms, needs a large amount of cash on hand to conduct daily business transaction in various markets, NASDAQ, NYSE, etc. The weakening dollar is killing these companies, and the combine that with higher oil prices, and I think we could see consolidation here come just that quickly.

Without investment capital, there won't be mergers. And there's no investment capital. The carrriers with the most cash on hand will survive.

 

[jke406]

.....worse case scenario could be a "run on the banks".....then we will wish it were just a recession....If panic sets in this could get a lot worse....

isn't that why we have the FDIC?

 

[anewunion]

The FDIC is not involved with Investment grade Banks..

 

[Bavarian Chef]

The FDIC is not involved with Investment grade Banks..

I don't think the phrase "run on the banks" meant all of us running to Bear Stearns and withdrawing our multimillion dollar portfolios.

 

[JoeMerchant]

Do you think the federal govt. is really capable of protecting against a large scale "run on the banks"? The federal govt. is bankrupt itself.....

 

[jke406]

I don't think the phrase "run on the banks" meant all of us running to Bear Stearns and withdrawing our multimillion dollar portfolios.

Exactly...I don't think Warren Buffet, Bill Gates, etc. are going to put their money in the mattress.

 

[Andy]

The FDIC is not involved with Investment grade Banks..

SIPC for brokerages. $500k limit, $100K cash limit. Most brokerages carry supplemental coverage, but that's subject to counterparty risk (think AMBAC, MBIA).

Neither FDIC nor SIPC have sufficient assets to pay the amount of claims that would result from one major bank or brokerage failure. It'd involve govt money, and that opens the door to hyperinflation.

 

[Morning Wood]

ALL regional airlines should fly turboprops for regional hub feed. Lower fuel consumption, good short field performance, and ability to carry 70 cheaper than 50 people. The majors should go back to flying short haul flights on 100 seat aircraft perhaps the larger EMB190 series. That what put the routing system back into perspective, take the children out of the jets, provide better service on those longer routes that RJs fly, reduce flights and ease the congestion at the problematic hubs. It will also keep the flying at the major level.

It's a good start, but unless someone is serious about reducing congestion at hubs such as ORD, LGA, and PHL and makes flight reductions permament, someone else is just going to back-fill what goes away. Sadly, the only thing that will reduce congestion is one or more legacies going out of business and the economy being so bad that no new LCC's can start.

 

[Superpilot92]

ALL regional airlines should fly turboprops for regional hub feed. Lower fuel consumption, good short field performance, and ability to carry 70 cheaper than 50 people. The majors should go back to flying short haul flights on 100 seat aircraft perhaps the larger EMB190 series. That what put the routing system back into perspective, take the children out of the jets, provide better service on those longer routes that RJs fly, reduce flights and ease the congestion at the problematic hubs. It will also keep the flying at the major level.

I agree with everything you said except that comment, it was stupid.

 

[eaglefly]

You're right, for now the 70-76 seat market is safe. Many multiple frequency 50 seat routes can be flown with less frequency with 70-76 seat jets. Also, the addition of first class seating increases the revenue potential.

In the cross hairs are the 50 seaters.

Which will be reduced, but not eliminated.